Resources and geopolitics in a multipolar world

The global resource landscape is being reshaped by a clear shift towards a multipolar world. Geopolitical developments — from US actions in Venezuela to growing interest in Greenland and the Arctic — are less about single commodities and more about influence, control of trade routes and long-term energy security.

Rather than focusing narrowly on oil or minerals in isolation, today’s geopolitical manoeuvring reflects a broader effort by major powers to secure control over energy flows.

Energy sovereignty: the strategic priority of the decade

China recognized this dynamic early. As a large importer of oil, it sought to reduce vulnerability by electrifying its economy and controlling the full supply chain — electric vehicles, solar panels, batteries and renewable infrastructure. Europe, by contrast, learned a painful lesson through its reliance on Russian gas, a dependency that is now being unwound at significant economic cost.

The takeaway is clear: energy sovereignty is no longer optional. Countries that fail to build secure, diversified energy systems risk long-term economic and geopolitical disadvantage.

What this means for Canada

Canada enters this new era with meaningful advantages. While it may not be globally competitive in manufacturing electric vehicles or advanced technologies, Canada is exceptionally well endowed with land, energy and critical minerals — inputs that are essential to both traditional energy systems and the clean energy transition.

Demand for these materials is rising sharply. For example, copper production would need to roughly double over the next 20 years to meet current electrification and renewable energy trajectories. Yet Canada has underinvested in production, not because of a lack of resources, but because of long and unpredictable permitting processes.

Recent federal initiatives, such as the Major Projects Office, are encouraging steps aimed at accelerating near-term execution. However, the larger opportunity lies in the medium- to long-term: creating a predictable, efficient framework that can unlock multiple large-scale projects, attract global capital and generate jobs across the country.

Electrification: beyond power generation

Electrification is often discussed in terms of power generation, but generation is only part of the story. Moving electrons — from where electricity is produced to where it is consumed — requires massive investment in transmission, grid management and infrastructure.

Rising electricity demand is being further accelerated by artificial intelligence and data centres, which governments increasingly view as strategic assets. After two decades of flat electricity demand, the US is now experiencing growth of 2-3% annually. This shift has exposed years of underinvestment in infrastructure across much of the western world.

The result is a renewed focus on building infrastructure: power plants, transmission lines, renewables and backup capacity. This transition favours companies and commodities tied to physical infrastructure, not just digital innovation.

Gold and silver: diversification in an uncertain world

In periods of geopolitical fragmentation and financial uncertainty, gold often serves as a barometer of global stress. With investors heavily allocated to equities and increasingly questioning the role of traditional fixed income, precious metals are regaining attention as portfolio diversifiers.

Silver offers a particularly interesting case. Historically seen as a lagging counterpart to gold, it also has a strong industrial dimension. Today, one of its most important uses is in solar panels. As countries pursue energy sovereignty and expand renewable capacity, industrial demand for silver is rising alongside its role as a precious metal.

Investment implications

The intersection of geopolitics, electrification and resource scarcity is reshaping the investment landscape. For long-term investors, the opportunity lies in understanding these structural forces — not just short-term price movements.

Canada is well positioned, but realizing this potential will require decisive action, efficient execution and a stable policy environment. In a world increasingly defined by competition for resources and energy security, those who can supply the building blocks of the future stand to play a central role.

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