New Executive Order: Huge News for Gold, Copper, and Uranium!

Domestic production of critical minerals is crucial to America’s national security. A new executive order from President Donald Trump will promote the nation’s production of these minerals, and will have an impact on commodities investors.

Trump’s executive order specifically mentions gold, copper, and uranium as critical minerals. In addition, the President “directed federal agencies to compile lists of pending mineral projects and expedite their review in coordination with the National Energy Dominance Council led by Interior Secretary Doug Burgum,” CNBC reported.

This order could finally reverse an alarming trend in America’s dependence on foreign mineral sources. CNBC mentioned that the U.S. imported 46% of its copper in 2023, and that nuclear plants in the U.S. imported 99% of the uranium concentrate used to make reactor fuel in 2023.

Trump is citing the Defense Production Act to increase America’s critical mineral production. If Trump’s opposition has a problem with this, they should bear in mind that Joe Biden also cited the Defense Production Act as a justification to boost the U.S.’s critical minerals output in 2022.

Interestingly, the mainstream media made a quick mention of Trump’s executive order but then quickly stopped talking about it. In reality, this is a monumental event that investors can’t afford to ignore.

Courtesy: @gandreou007

You’ve probably heard about the U.S. importing massive amounts of gold bullion recently, and potentially restocking Fort Knox. What if America could have the output capacity to produce as much gold as it needs, though?

It’s not farfetched at all, now that Trump is prioritizing domestic gold production. Soon enough, there might not be any need for the U.S. to order billion-dollar shipments of gold from foreign sources.

As for uranium, it’s self-evident that domestic production is an absolute necessity in terms of national security. For too long, the U.S. and other nations have depended on foreign countries, such as Kazakhstan, for uranium.

And, national security isn’t the only concern when it comes to critical minerals. As Trump’s executive order explains, “Transportation, infrastructure, defense capabilities, and the next generation of technology rely upon a secure, predictable, and affordable supply of minerals.”

Importantly, Trump’s executive order covers not only the critical minerals themselves, but also the derivative products of those minerals. These derivative products include semiconductor wafers, electric vehicles, batteries, smartphones, microprocessors, and radar systems.

This, just as much as domestic oil production, encapsulates the spirit of “drill, baby, drill.” In less than a month, federal agencies will “identify as many sites as possible” on federal lands for potential production of critical minerals.

Courtesy: @BarChart

Of course, we can’t overlook copper in the critical minerals mix. There’s been a lot of chatter about the copper price hitting $5, but that’s a resistance level and the price could go much higher.

If commodities investors are concerned about domestic mineral production skewing the supply-demand balance, they shouldn’t be. Global copper demand, according to one source, is anticipated to increase by 70% over the next 25 years.

In other words, there will be more than enough demand for critical minerals to push the prices higher against the U.S. dollar. With Trump’s executive order, at least America has an opportunity to fulfill that demand domestically instead of having to plead with potentially hostile nations.

Overall, this is highly impactful and bullish for minerals on a long-term basis. America has had these resources for a very long time, and now it’s time to tap into those resources and adjust gold, copper, and uranium prices accordingly.