Why Helium Could Be The Next Commodity To Boom22 Apr 2021 09:57
Why Helium Could Be The Next Commodity To Boom
Editor OilPrice.com
Thu, April 22, 2021, 12:00 AM·14 min read
More content below
More content below
More content below
More content below
More content below
More content below
More content below
HG=F
-0.23%
NG=F
-0.41%
LAC
+3.23%
TECK
+1.83%
TRQ
+1.44%
+2
Every once in a while, a niche commodity - usually a relatively rare one - comes along that the world simply can’t get enough of.
Normally, the investment script reads something like this: Word gets out about a looming shortage of a certain commodity; Small-cap natural resource companies quickly “pivot” to said commodity, and the next thing you know a surge of investment interest and commodity bubble quickly follow.
It’s happened with numerous rare earth metals, potash, graphite, cobalt, vanadium, and even marijuana (though not strictly a commodity) …
We think that’s the position of a little-known Canadian stock Avanti Energy Inc. (TSX: AVN.V; US OTC: ARGYF), as it emerges off the acquisition trail with, in our opinion, a world-class team in a market that is primed for growth.
And we believe the best thing about this particular commodity is that it has largely gone under the radar until now.
Helium prices increased before the pandemic, and while Covid has delayed the supply squeeze, we think demand is sure to return as the world begins to recover.
And when prices begin to climb again, we think Avanti Energy is going to be one company to watch.
Why Helium is so important
Helium has the lowest melting point of all the elements (-272.2 °C), which makes it the go-to commodity when it comes to cooling.
Liquid helium is used for cooling everything from magnets in MRI machines and ventilator machines to supercomputers and data centers. About 30% of the world’s helium supply goes into MRI scanners, while another 20% of the world’s helium supply goes into the manufacture of hard disks and semiconductors.
With Big Tech companies such as Google, Facebook, Amazon, and Netflix being heavy users of helium in their massive data centers, we think this segment of the market is likely to be one of the fastest-growing over the next decade or so given the world’s insatiable appetite for data.
Overall, the global helium market was worth approximately $10.6 billion in 2019
https://finance.yahoo.com/news/why-helium-could-next-commodity-230000144.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFo3uLWleUk7yQxx--wSs4OyqcB_QdLP2UTUaI-50z2JrzACgiWhGSO7x-6BRrimwJfThAPJZtMipRjr9ogm1D3pOLDTMsUhtxmgUwwyYpGVDAzxRCP6GLXZGJUYn_RIa3dIaAvPsQ4wwWIxiHbW2_ndtwsEZynwdohjC3sYAalg
Sign In
Follow the stocks
