Hello Everyone,
A Sisyphean task.
Sisyphus was a Greek mythological character punished by the Gods with the task of rolling a boulder up a hill for eternity, only to have it roll back down each time he neared the top.
To me, this seems to be a similar problem to the one that we are facing in the United Kingdom. How to grow a flourishing and stable economy? One that does not fluctuate between success and failure, but increases steadily, providing security for businesses and the population as a whole.
This raises the question as to whether any of our political parties, of whichever colour and persuasion, are capable of resolving this problem. In my opinion, too many of our politicians, ministers, and civil servants are conjured up from the legal, financial, educational, and economic professions. This would seem to me to be an unholy alliance! Frequently, these people are selected for their ability to win arguments, or forward the views of influential outside groups. There are not enough with a proven track record of successfully running projects, who are capable of constructing meaningful plans for the future of the country.
I believe it was Herodotus who said that when the Persians debated a problem, they did so firstly sober and secondly drunk. If the result was the same, then they went ahead. This being the case, perhaps we need this approach to be introduced into our Parliament. After all, they already have a well-stocked subsidised bar on the premises.
Like many people, I am a great believer in the future of Artificial Intelligence (AI) and the benefits it must bring to the world, especially in the area of medical progress. I never cease to be amazed at the uses to which it will be put. However, I get the impression that many only think of self-drive cars, and robots which do mundane jobs and act as “companions”. These people are in for a great surprise when they see how their world is going to change.
Unfortunately, there will also inevitably be the fraudulent use of AI that can generate misinformation in all its ways. The authorities will have to find some way of containing this, and that is going to be no small task!
The environmental drive to increase the number of electric cars on the road has obviously had to be accompanied by a corresponding increase in battery production. Therein lies a problem. A battery requires lithium, cobalt, nickel, graphite and copper, all of which have to be mined. I read recently that it requires more than a hundred tonnes of earth to be moved to produce these minerals for just one battery, and that is assuming that the mine is a proven productive one. Newly opened exploration mines may also be duds, all cost for no gain … just more global warming!
This is where the mining companies’ new use of AI will prove to be extremely beneficial. They will now be able to predict with more certainty, not only new productive sites, but also better grade sites. This is obviously good news at a time when miners are also tasked with reducing carbon emissions. A case of less work for better results, and the bonus of reduced pollution. This same approach is also being used by the oil and gas industry to predict and locate productive drilling opportunities. Artificial Intelligence being used as it should be.
Another application that astonishes me, will be the use of AI in the agricultural industry. In the near future, there will be AI controlled farming machines that will precisely plant seeds, and then, as they grow, be able to treat tiny areas for disease, while constantly monitoring food and water requirements. This will lead to significantly increased yields, whilst using less pesticides and precious water. More money for the farmer, and more food for an ever increasing world population.
It is widely known that AI generation consumes a vast quantity of energy, and this is going to increase astronomically over a very short period of time. There is little chance that this demand can be securely met by the environmental sources of wind and solar power alone. This has opened the door for the resuscitation of nuclear generated energy. This month, twenty-two nations signed up to its use for the future. Not using the old massive nuclear power stations, but safer, smaller and cheaper Small Modular Reactors (SMRs). These can be produced in factories in modular form, and then assembled on site. Worldwide there are more than one hundred and sixty now on order. Being smaller, and less obtrusive, they can be located near where they are needed (potentially even underground). In the UK, this also means less pressure on the reconstruction and upgrading of the National Grid. It is also a proven technology that has been used in submarines and aircraft carriers for many years.
The above is all very well and good, but SMRs do not run on fresh air, they require uranium. The demand for this material already outstrips the amount available, and logic says that this situation can only get worse. Even as the miners turn on the taps, and pressure is ramped up on recycling, there is still likely to be a shortfall. The inevitable conclusion is that prices must go up. So perhaps the way to invest into nuclear energy is with both the supplier and user of this fuel.
Sometime ago, I went head over heels for hydrogen as the saviour for the world’s energy supply problems. I tried to cherry-pick the actual players in this field and got it hopelessly wrong. As a result I lost money. This time around I intend to mostly use a fund where their team does the work and widens the exposure. There are quite a few, but I have selected HANETF Sprott Uranium Miners to do the heavy lifting, with Geiger Counter and Global X Uranium acting as back-up. There are a whole raft of SMR manufacturers, especially in the USA. Some are already manufacturing, whilst the bulk are still in the design stage. However, I have chosen Rolls Royce, here in the UK. It has a proven product, and sooner or later the government will give the go ahead and place some orders.
Totally separate from all of the above, I have been pondering on the present investment climate. We have the American election, the UK budget and its potential consequences, war in the Ukraine and also the conflict in the Middle East. It is a really disturbing and uncertain climate for making investments. I am now in my eighties and have taken the route of greatly reducing my investments (apart from nuclear energy). If there was to be a collapse, perhaps I would not be given the time and chance to recuperate any losses. A younger person might look at it differently and be prepared to take a gamble.
I always try to remember the saying “Over time you win by not losing” and this may be one of those times.
A Sisyphean task.
Sisyphus was a Greek mythological character punished by the Gods with the task of rolling a boulder up a hill for eternity, only to have it roll back down each time he neared the top.
To me, this seems to be a similar problem to the one that we are facing in the United Kingdom. How to grow a flourishing and stable economy? One that does not fluctuate between success and failure, but increases steadily, providing security for businesses and the population as a whole.
This raises the question as to whether any of our political parties, of whichever colour and persuasion, are capable of resolving this problem. In my opinion, too many of our politicians, ministers, and civil servants are conjured up from the legal, financial, educational, and economic professions. This would seem to me to be an unholy alliance! Frequently, these people are selected for their ability to win arguments, or forward the views of influential outside groups. There are not enough with a proven track record of successfully running projects, who are capable of constructing meaningful plans for the future of the country.
I believe it was Herodotus who said that when the Persians debated a problem, they did so firstly sober and secondly drunk. If the result was the same, then they went ahead. This being the case, perhaps we need this approach to be introduced into our Parliament. After all, they already have a well-stocked subsidised bar on the premises.
Like many people, I am a great believer in the future of Artificial Intelligence (AI) and the benefits it must bring to the world, especially in the area of medical progress. I never cease to be amazed at the uses to which it will be put. However, I get the impression that many only think of self-drive cars, and robots which do mundane jobs and act as “companions”. These people are in for a great surprise when they see how their world is going to change.
Unfortunately, there will also inevitably be the fraudulent use of AI that can generate misinformation in all its ways. The authorities will have to find some way of containing this, and that is going to be no small task!
The environmental drive to increase the number of electric cars on the road has obviously had to be accompanied by a corresponding increase in battery production. Therein lies a problem. A battery requires lithium, cobalt, nickel, graphite and copper, all of which have to be mined. I read recently that it requires more than a hundred tonnes of earth to be moved to produce these minerals for just one battery, and that is assuming that the mine is a proven productive one. Newly opened exploration mines may also be duds, all cost for no gain … just more global warming!
This is where the mining companies’ new use of AI will prove to be extremely beneficial. They will now be able to predict with more certainty, not only new productive sites, but also better grade sites. This is obviously good news at a time when miners are also tasked with reducing carbon emissions. A case of less work for better results, and the bonus of reduced pollution. This same approach is also being used by the oil and gas industry to predict and locate productive drilling opportunities. Artificial Intelligence being used as it should be.
Another application that astonishes me, will be the use of AI in the agricultural industry. In the near future, there will be AI controlled farming machines that will precisely plant seeds, and then, as they grow, be able to treat tiny areas for disease, while constantly monitoring food and water requirements. This will lead to significantly increased yields, whilst using less pesticides and precious water. More money for the farmer, and more food for an ever increasing world population.
It is widely known that AI generation consumes a vast quantity of energy, and this is going to increase astronomically over a very short period of time. There is little chance that this demand can be securely met by the environmental sources of wind and solar power alone. This has opened the door for the resuscitation of nuclear generated energy. This month, twenty-two nations signed up to its use for the future. Not using the old massive nuclear power stations, but safer, smaller and cheaper Small Modular Reactors (SMRs). These can be produced in factories in modular form, and then assembled on site. Worldwide there are more than one hundred and sixty now on order. Being smaller, and less obtrusive, they can be located near where they are needed (potentially even underground). In the UK, this also means less pressure on the reconstruction and upgrading of the National Grid. It is also a proven technology that has been used in submarines and aircraft carriers for many years.
The above is all very well and good, but SMRs do not run on fresh air, they require uranium. The demand for this material already outstrips the amount available, and logic says that this situation can only get worse. Even as the miners turn on the taps, and pressure is ramped up on recycling, there is still likely to be a shortfall. The inevitable conclusion is that prices must go up. So perhaps the way to invest into nuclear energy is with both the supplier and user of this fuel.
Sometime ago, I went head over heels for hydrogen as the saviour for the world’s energy supply problems. I tried to cherry-pick the actual players in this field and got it hopelessly wrong. As a result I lost money. This time around I intend to mostly use a fund where their team does the work and widens the exposure. There are quite a few, but I have selected HANETF Sprott Uranium Miners to do the heavy lifting, with Geiger Counter and Global X Uranium acting as back-up. There are a whole raft of SMR manufacturers, especially in the USA. Some are already manufacturing, whilst the bulk are still in the design stage. However, I have chosen Rolls Royce, here in the UK. It has a proven product, and sooner or later the government will give the go ahead and place some orders.
Totally separate from all of the above, I have been pondering on the present investment climate. We have the American election, the UK budget and its potential consequences, war in the Ukraine and also the conflict in the Middle East. It is a really disturbing and uncertain climate for making investments. I am now in my eighties and have taken the route of greatly reducing my investments (apart from nuclear energy). If there was to be a collapse, perhaps I would not be given the time and chance to recuperate any losses. A younger person might look at it differently and be prepared to take a gamble.
I always try to remember the saying “Over time you win by not losing” and this may be one of those times.
Best wishes and good luck with your investments.
Douglas
Founder
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