This may be the most euphoric or disastrous 2-word phrase an investor can hear.

Commodity and stock futures have maximum allowable limits on price appreciation or depreciation. This is to avoid a catastrophic blow to investors who trade incorrectly.

  • Only in the most volatile market conditions will we see a “melt-up” or “crash” scenario.

We are now seeing these scenarios in real time.

I just returned from a field trip to Mexico and just before that I attended the largest institutional mining investment conference in Florida.

Multi-billion dollar fund managers, family offices, hedge funds …… have it all.

In addition, the most important natural resource companies are there. All are trying to close big deals in the coming year.

This is the "who's who" where the worlds of investment and natural resources collide.

The trading room has been extra busy this year due to the situation in Russia versus Ukraine. Commodity prices soared as tensions between the superpowers escalated.

The rush to the safe haven has begun

This allows the dollar to continue to dominate the world as a reserve currency.

It is in times like these that all the cards are on the table. Where are the real safe havens? You won't see people rushing to buy rubles, yen or euros.

They are flooding into the dollar and gold. Both have appreciated significantly since the conflict began.

This is a world I've described many times before where we can have both a strong dollar and a strong gold price.

The price of gold has soared over the past two weeks. It approached $250 and peaked at $2,067 per ounce.

We are watching closely and have bought the best gold stocks in Katusa's Resource Opportunities portfolio.

Soaring global energy prices

Oil prices have risen nearly 60 percent this year.

Brent crude is the key benchmark oil price in Europe and has now removed most of the previous resistance.

It is just one step away from the all-time high set in August 2008.

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Why is crude oil rising?

The reason oil is now soaring is because Russia is one of the world's largest producers and exporters of oil.

  • If Russian companies overwhelmingly shut down SWIFT banking facilities, it would effectively reduce to zero any oil normally shipped to Western countries.

This represents millions of barrels of oil in an already tight market.

The U.S. bans all oil, gas and coal from Russia from entering the United States.

President Biden has urged all other countries to do the same, but acknowledges that many (such as Germany) are unable to do so without time to secure alternative sources.

President Biden did not include uranium in the import ban.

  • (Note for further reading: I discuss many of these issues in my 2014 book, The Cold War.)

I know it sounds ridiculous, but the U.S. has granted a sanctions exemption to Rosatom, the largest Russian uranium company that owns Uranium One.

When the major media finally understand the absurdity of this strategy, things will change.

Uranium interest…

Elsewhere in the energy market, uranium is also subject to competitive bidding.

It topped $50 per pound for the first time since 2012. As I have written many times, the former Soviet Union produced half of the world's uranium.

As utilities look to avoid doing business with FSU, this will push up spot prices.

Just like avoiding Russian oil, new uranium cannot be made out of thin air, which has and will continue to drive up prices.

This is a big card.

Countries will start voluntarily rejecting Russian nuclear fuel, just like Sweden did.

Sweden has only 6 operating reactors, but for this alone, the spot price rose from $43 to $47 in 3 days.

More countries will be under pressure from their citizens to follow Sweden's lead and voluntarily shun Russian uranium and commodities. This will put upward pressure on uranium spot and long-term prices.

Some would argue that if Russia continues to push forward and increase its land grabs – once alternative energy sources are available (time frame: 12 months) – energy flows will be a sacrifice the EU will have to make.

Keep a close eye on uranium as the mainstream narrative continues to shift toward this carbon-neutral fuel.

  • On net zero, how does war affect the carbon market?

Carbon credits are very bullish.

That's why ……

This is because the flow of natural gas from Russia may slow down significantly. Switching to coal (to make up the difference) will replace natural gas for power generation.

Coal emits much more CO2 than natural gas. This means that utilities will have to offset these emissions. The transition to green and non-Russian fossil fuels will take several more years.

We entered the carbon bull market very early.

Where are the other items that made headlines ……

Metal market rises

We are seeing this in the nickel market in a more aggressive way.

Russia is one of the largest producers of nickel and prices have soared due to concerns about not being able to ship the product.

  • In one of the most extreme moves in nickel history, prices soared 90%, resulting in the largest per-dollar increase in the contract.

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This will have a huge blockchain response for the steel industry, which utilizes 70% of the world's nickel production each year.

Elon Musk and his company won't be happy either, as nickel is a core component of many of the electric car batteries made today.

Right there in the bread basket.

Even the local market is feeling the effects of the conflict.

  • Wheat traded on the Chicago Mercantile Exchange rose 70%, “up” for six consecutive trading days.

Last week alone, wheat prices soared by more than 40%.

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Wheat is just one of the many "soft commodities" that are being bought at high prices.

Russia and Ukraine are the main suppliers of grains, vegetables and fertilizers. Food prices around the world are already high and are likely to go higher.

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As this conflict leads to higher food prices and slower GDP growth, stagflation concerns in Europe seem to be a situation worth preparing for.

Crowds are watching

The number of mining companies in the S&P 500 will increase …… This means that capital flows to the sector will increase.

At the end of the Cold War, there were 20 mining companies in the S&P 500. Today there are 2.

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Expect this to change: the Cold War.

We are in truly ugly and challenging times. Russia seems to be single-minded and tensions will continue to escalate.

I play the cards I receive, and there will be plenty of generational opportunities in the coming months – if you have the cash to put to work.

You can follow along to see what I'm doing and what positions I hold. It's all within Katusa's resource opportunities page.

Fate favors the bold. Do not be afraid now.

Greetings.

Disclaimer: The views expressed herein are those of the author and may not reflect the views of Kitco Metals Inc. Every effort has been made to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation of any exchange for commodities, securities or other financial instruments. Kitco Metals Inc. and the author(s) of this article do not accept liability for loss and/or damage arising from the use of this publication.