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The Coming Financial Sentinel Event


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 I wish to expound on this subject because of the events that have happened this week. 

 

It's one thing to listen to podcasters and their speculations of where things are going. One can learn and thus make a reasonable decision about whether or not they wish to buy silver. However, this week something happened on those podcast that opened my eyes to a coming Sentinel event in the financial world. The CEOs of several Major online sellers of precious metals requested to be interviewed by the very podcasters that advertise for them. And what they had to say was SHOCKING to say the least. 

All of them, to the last person, explained that they have never before seen anything like what is happening in the silver market in their lives or in their study of historical events with respect to silver. That the demand for silver is now blowing up and rapidly approaching an uncontrollable level. Some of these CEOs even said that they are beginning to find it difficult to get bullion themselves. 

 

As we watched the events of the silver market, other markets were likewise seeing a major influx of new investors. 

 

Crypto

The crypto market has seen an unprecedented rise in across the board coins. With Ethereum taking the lead this year reaching a 132% rise since Jan I 2020, stabilizing around $1700 today. 

 

Stocks

Also being reported is that stock traders across the board are likewise seeing a surge in new investors on the heals of the Game Stop debacle. 

 

So what is the reason for the unprecedented interest in investment opportunities? 

Without a doubt the Reddit boys in Wallstreatbets have created quite the stir among the people. However, I don't believe that was what created this newfound interest. More likely it was the powers that be reaction to that event. We saw the unbelievable attack against the Wallstreatbets people going so far as to call them White Supremacist. We watched in shocked amazement as the brokerage  platforms intervened into the market and shut down the buying of Game Stop in order to save the Hedge funds that stood to go bankrupt on their shorts. 

It doesn't take a genius to see the reaction that these events caused in the general population. We have all been  shown that the PTB are not only going to stop the, "little guys" from getting ahead but they will  overtly attack anyone who tries. This has raveled two things that most never saw. 

 

First, It shows that we are all little more than slaves to their system with little or no chance of ever reaching the level of mega wealth. 

 

Second, The reaction to the Game Stop and now the Silver blowout has shown the populous a ***** in the armor that protects the elite. Their expression of complete fear has revealed something that we've all known but no one ever wanted to admit to. 

 

THE COMING COLLAPSE OF THE DOLLAR.

There can be only one reason that the so called elite have reacted in the manner that they did. And that reveals to us that the dollar is far weaker than anyone really knew. By showing us that everything the elites tell us is a lie they have shown us that the dollar is on the brink of collapse. 

 

So what will we see next?

The unprecedented flood of currency into anything but the dollar. I submit to you all that we are seeing the beginning of that now. And the best place to place your failing dollars is Silver. The National Debt Clock  tells us that the actual price  of Silver is over $4800 dollars an ounce. That number is based on the amount of currency printed and the value that currency should have under the gold standard based on the Constitution. 

However, if there is a collapse of the dollar I suspect that the value of Gold and Silver will easily go much higher. If for no other reason than it will become the only tradeable commodity considered money. 

 

A WARNING

What is about to happen is something I like to call the "Hundredth Monkey Syndrome".

And this syndrome has been scientifically proven.

The effects of people becoming aware of the weakness of the dollar is going to reach a crescendo  where SUDDENLY everyone will know it, and they will react to it. I understand that for most it is difficult to see the world we live in as anything other than what we see now. But make no mistake about it our world is going to change in ways that are unbelievable. And it's my opinion that the people who will feel the least pain in the Sentinel event are those that have invested in cryptos and precious metals, silver being the best as it's the most undervalued. Also I would HIGHLY suggest that if you're reading this you buy at  least two months extra of food. 

 

None of this is to say that the world is over because people are strong and we will recover in short order. However, only those who have taken most all of their currency, "dollars", an transferred that into something else will feel the least pain. 

 

In closing let me say something about those people investing in the stock market.

That is NOT putting your dollars into something else. If you're invested in the stock market then you are still in dollars. And you will loose all your currency. I know that some of you are saying to yourselves right now, "you're just a truck driver, what could you possibly know?" And to those people I have only one response, Sucks to be you.

Of all the crazy things I've said in the past NOTHING has ever made as much an impression on me as the events of the last week. What I'm saying now I do so with the UTMOST of sincere belief. For me this is no longer speculation, this is a fact. The Hundredth Monkey is just around the corner and when he realizes what is happening everyone will at the same time. This collapse will seemingly happen overnight. Study the Weimar Republic, this has all happened before. 

 

 

 

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I know that there are many here that think they can't afford any precious metals, I was one of them. But consider this, one ounce of Silver is just $33 dollars plus roughly $4 dollars shipping. That's a premium of nearly $10 dollars over the spot price. And I can assure you that premium is only going to go higher. eventually the spot price and the actual price will diverge so much that the spot price market, {the COMEX} will eventually collapse. And when that happens where it all stops is anybody's guess. So if you just bought one ounce of Silver with every paycheck, {just $37 to $40} you could end up with a price over $4800 per coin in the end. It should be noted that the premium is roughly 30% over the spot price. But there's another metal that isn't nearly as expensive and has a much higher premium.

 

COPPER

As we look at the price of a pound of Copper we can begin to see what is really going on in the metals market. As of Friday a pound of Copper sold for $3.62 {on the COMEX}

Now it takes roughly 17 ounces of Copper rounds to equal one pound and just one Copper round is selling today for $3 dollars. So $3 times 17 ounces is $51 dollars a pound of Copper. That's 17 times the spot price.

 And the cheapest I've found was at Money Metals Exchange

You can buy a 34 pound bag of pre 1982 wheat pennies, which are 95% copper, for roughly $156 dollars plus $25 for shipping. That's roughly $181 dollars for 34 pounds of wheat pennies or 32.3 pounds of  copper. According to the spot price of Copper the 34 pound bag of wheat pennies should only cost $117 dollars. But you paid $181 dollars, a difference of $64 dollars or 35.5% over spot. 

I advise using extreme caution when shopping for Copper as you will easily learn that some sellers of one pound bars are as high as $50 dollars for what the spot price says should be $3.62. 

What does this divergence, and the divergence with other precious metals, tell us?

In my opinion it is a clear sign that we are nearing a Hundredth Monkey Sentinel event.

And make no mistake about it when that Hundredth Monkey realizes the dollar is worthless it will be too late for you to react. Now is the time to put your dollars into anything that isn't dollars. Or you will wake up one day broke. And judging from the 30% plus premiums on all metals I'd say that day is coming much sooner that anyone thinks. 

 

 

 

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2 hours ago, ladyGrace'sDaddy said:

I know that there are many here that think they can't afford any precious metals, I was one of them. But consider this, one ounce of Silver is just $33 dollars plus roughly $4 dollars shipping. That's a premium of nearly $10 dollars over the spot price. And I can assure you that premium is only going to go higher. eventually the spot price and the actual price will diverge so much that the spot price market, {the COMEX} will eventually collapse. And when that happens where it all stops is anybody's guess. So if you just bought one ounce of Silver with every paycheck, {just $37 to $40} you could end up with a price over $4800 per coin in the end. It should be noted that the premium is roughly 30% over the spot price. But there's another metal that isn't nearly as expensive and has a much higher premium.

 

COPPER

As we look at the price of a pound of Copper we can begin to see what is really going on in the metals market. As of Friday a pound of Copper sold for $3.62 {on the COMEX}

Now it takes roughly 17 ounces of Copper rounds to equal one pound and just one Copper round is selling today for $3 dollars. So $3 times 17 ounces is $51 dollars a pound of Copper. That's 17 times the spot price.

 And the cheapest I've found was at Money Metals Exchange

You can buy a 34 pound bag of pre 1982 wheat pennies, which are 95% copper, for roughly $156 dollars plus $25 for shipping. That's roughly $181 dollars for 34 pounds of wheat pennies or 32.3 pounds of  copper. According to the spot price of Copper the 34 pound bag of wheat pennies should only cost $117 dollars. But you paid $181 dollars, a difference of $64 dollars or 35.5% over spot. 

I advise using extreme caution when shopping for Copper as you will easily learn that some sellers of one pound bars are as high as $50 dollars for what the spot price says should be $3.62. 

What does this divergence, and the divergence with other precious metals, tell us?

In my opinion it is a clear sign that we are nearing a Hundredth Monkey Sentinel event.

And make no mistake about it when that Hundredth Monkey realizes the dollar is worthless it will be too late for you to react. Now is the time to put your dollars into anything that isn't dollars. Or you will wake up one day broke. And judging from the 30% plus premiums on all metals I'd say that day is coming much sooner that anyone thinks. 

 

 

 

 

 

There will never be a good time to jump into Metals....I did 6-7 years ago or actually 10 years when I bought 150 Franklin Half Dollars. Since I have bought 120 Morgan and Liberty Dollars. Somewhere a bag of mercury Dimes.

 

I started Silver rounds, bars, fractionials and silver Shot.....Just what ever I found I could buy at a good price.

 

I also bought a bunch of 16 ounce bars and 1 ounce rounds of Copper along with scrap Copper Wire.

 

Get in now while you can but only invest what you can afford.

 

Karsten

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  • 3 weeks later...

You think this isn't related to what is happening with the economy?

THINK AGAIN

 

Breaking91
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He plans to do this by using the money being spent on foreign aid and Big Tech transit to instead increase the checks to 10k
 
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do this by using the money being spent on foreign aid and Big Tech transit to instead increase the checks to 10k
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2 hours ago, md11fr8dawg said:

Sounds like to jumped from cryptos to silver in the last few weeks, Big Guy!! What gives??

How many successful portfolios have you heard of with just one commodity? 

I'm still very Bullish on Cryptos, but that is still a very new market with some of the most extreme fluctuations ever known. One should only put in Cryptos what you are not worried about. And then forget about it for a couple of years. 

At today's market there's over 1 and a half Trillion dollars in the market. I said this would happen two years ago but everyone laughed at me.

Today I will say that in 2 to 3 years The Crypto market will easily have 3 to 4 Trillion dollar market cap. 

This is an extremely good investment opportunity for those who have a strong stomach and tons of patience.  

Nevertheless, it's just a matter of time before the government gets involved and screws it up.  I suspect that will be when the 4 to 5 Trillion dollar market cap happens. 

 

Silver, on the other hand, is the consummate prepper commodity. For decades they have controlled the price of Silver but that's about to break. And with it will come the collapse of the dollar by as much as 60%. At least that is what the Iraqi government thinks the dollar will loose this year.  

The American government can make it illegal to own Silver again but how are they going to enforce that? When they come to my door asking about Silver my response will be, " I am sorry but I sold it all ".

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We live in a time when it has become clear that nothing our government says can be trusted and everything we hear from the media must be interpreted by that which our hearts tell us. 

 

For example,

When you see a headline like the one below. One must measure the recent events that we know of and consider the political dispensation of deceit in which we live, then read between the lines. 

 

The most anti American party claiming to want to "CLEAN UP" the world from capitalist pollution and implement their 'New Green Deal' just loosened up mining restrictions so as to produce more precious metals.  

 

Take that admittance with the knowledge of the Silver squeeze and recent reactions from the Fed along with JP Morgan and what do you get? Or allow me to say this another way, try going online and buy some Gold or Silver. 

 

You are going to pay higher premiums and wait several weeks for delivery. (Something I suggest you do now). 

The Federal government, The Central bank and the major Custodians of the Silver and Gold markets are running in terror for their lives. Average American people have unknowingly discovered the major flaw in their strategy. Their control and manipulation of precious metals in order to shore up their Fiat Ponzi scheme has been given it's death blow. By squeezing these markets we have left the PTB in complete confusion.

 

The upside is those who have purchased precious metals will come out of this mess on top. 

 

The downside is that once their Fiat Ponzi scheme fails, things are going to get really hard for everyone in the short term. People, PLEASE take heed and prepare accordingly. 

 

 

Wheel loaders fill trucks with ore at the MP Materials rare earth mine in Mountain Pass, Calif., on Jan. 30, 2020. (Steve Marcus/Reuters)
Wheel loaders fill trucks with ore at the MP Materials rare earth mine in Mountain Pass, Calif., on Jan. 30, 2020. (Steve Marcus/Reuters)MORE
BY EMEL AKAN
March 1, 2021

 

WASHINGTON—The Chinese communist regime has recently signaled that it could leverage its dominance in rare earth minerals, raising alarm bells in the United States. The threat has prompted the Biden administration to take action to reduce U.S. reliance on China for rare earth metals that are used in everything from smartphones to electric vehicles to fighter jets.

In 1992, Chinese leader Deng Xiaoping predicted the importance of rare earths to China’s future when he famously said, “The Middle East has oil. China has rare earths.”

Today, China is the dominant global supplier of rare earths, a group of 17 chemical elements used in the production of critical components of key technologies, which could easily be used as a weapon against other countries in a trade war or a conflict.

Beijing has already demonstrated that it could use rare earth elements as a retaliatory tactic. In 2010, China abruptly cut off exports of these elements to Japan during a conflict over a fishing boat. And at the height of the U.S.-China trade spat in 2019, Beijing sought to use rare earth exports as a “counter-weapon” against the United States.

And most recently, the Chinese regime officials reportedly explored whether curbing the export of rare earth minerals to the United States could cripple its production of F-35 fighter jets.

Faced with the threat of losing access to rare earth materials, the Biden administration is now seeking ways to reduce America’s deep reliance on China. President Joe Biden on Feb. 24 signed an executive order to “help create more resilient and secure supply chains for critical and essential goods."

 

The order focuses on choke points in the supply chains of four key products, including rare earth minerals, semiconductor chips, large-capacity batteries for electric vehicles, and pharmaceutical ingredients.

 

It 

directs federal agencies to immediately conduct a 100-day review to identify supply chain risks and vulnerabilities for these key products.

These are the products where the vulnerability has become very clear, according to Julie Swann, a supply-chain expert who heads North Carolina State University’s department of industrial and systems engineering.

“We don’t even know the full extent of the vulnerability, or the potential impact. I think this is just the beginning,” Swann told The Epoch Times.

 

According to her, there are likely other products and supply chains that will come under review as the administration continues to detect more vulnerabilities.

It’s unclear what actions the administration will take following the review; however, there are different options depending on the product.

Speaking at a press conference, Peter Harrell, senior director at the National Security Council for international economics and competitiveness said “all tools are on the table” for the administration.

“We’re expecting we’ll be using a mix of incentives to encourage production here. We’re looking at ways to ensure there’s surge capacity available for things that might need to be ramped up quickly—stockpiling,” he said.

He added that the administration would also consider working with allies and partners to take collective actions to address future supply shocks.

According to Swann, it is expensive for any country in the world to try to be self-sufficient, and have all of the specializations and capabilities.

“What is likely to be a more sustainable approach is to make sure that a supply chain is robust to disruptions,” she said rather than just focusing on becoming entirely self-sufficient.

Rare Earths Are Abundant

Rare earth minerals are critical to the U.S. economy and national security. They play a vital role in many industries including consumer electronics, green technologies, medical tools, and defense. Rare-earth magnets, for example, are used in many hybrid and electric vehicles. These metals are also key to the production of weapon guidance systems, jet engines, sonar devices, and laser weapons.

Rare earth elements are abundant and easy to mine, nonetheless, they are called “rare” because they are difficult to separate and refine into a usable form.

In the 1980s, the United States was the world leader in the production of these elements and almost all U.S. production was coming from the mine operated near Mountain Pass, California, which was closed in the 1990s. The mine was reopened in 2013 after China restricted supplies.

In recent decades, China has gradually become the dominant power in both the mining and the refining of these elements. Today, China controls about 80 percent of the global supply of rare-earth minerals even though it contains only a third of the world’s reserves, according to U.S. Geological Survey (USGS) data.

Currently, the United States is fully dependent on imports of rare earths, with 80 percent directly coming from China.

China can “absolutely” limit exports of rare earths to the United States, according to Lewis Black, CEO of Almonty Industries, a Canada-based mining company that is specialized in tungsten, a rare metal.

“The mechanism to do so has always been in place and was recently strengthened in December 2020 with new laws that allowed the state to stop exports if deemed in the national interest,” Black told The Epoch Times, referring to Beijing’s new export control law, which came into effect on Dec. 1, 2020.

To counter this threat, the United States has the potential to catch up and expand the mining and refining domestically.

“Rare earths are plentiful but it’s really a question of whether local communities would welcome a mine opening up nearby,” Black said.

The processing required to produce these rare earth minerals is environmentally challenging and it also threatens human health.

“Mining left the United States in part not just because of cost but also for the optics as communities often objected to the presence of a mine,” Black said.

The biggest hurdle, he noted, would be reassuring the public that these mines can operate safely and environmentally responsibly.

“Most people have heard or seen horror stories regarding older mines and given mining has not been a dominant industry in the USA for a generation this reeducation of the public regarding modern methods will take time,” he said.

While rare earths are critical to the economic and national security of the United States, it’s unclear whether the Biden administration may promote ramping up domestic production and processing due to environmental challenges.

Japan Conflict

Beijing abruptly cut off rare-earth exports to Japan during a diplomatic clash in 2010 after a Chinese fishing boat collided with two Japan Coast Guard ships in the East China Sea. The export ban sent the prices for raw materials through the roof. The huge price spike worked against Beijing, as it encouraged new production in countries such as Australia and destroyed demand for Chinese rare-earth metals.

The resulting supply chain disruption led Japan, the United States, and the European Union to jointly launch a dispute settlement case through the World Trade Organization in 2012, which was ruled against China two years later.

An increase in prices led to an influx of capital in the rare earth mining industry, which helped kick-start mining projects in other parts of the world. However, this exploration boom was short-lived as the supply threat passed and the prices came down.

“That’s also the case now,” according to Harvard Business School professor Willy Shih.

“The real question is whether domestic sources will be economically sustainable over time,” he wrote in a recent op-ed in Forbes.

Shih believes the biggest challenge the United States faces in becoming self-sufficient in rare earths is economics.

A group of investors in 2018 restarted limited production of at least two rare earth elements at the mine in Mountain Pass. As a result, the domestic production of critical rare-earth mineral concentrates jumped 44 percent in 2019, making the United States the largest producer of rare-earth mineral concentrates outside of China, according to USGS. But almost all raw materials had to be shipped to China for processing because it creates toxic wastes that make it hard for the United States to deal with it.

In July 2019, President Donald Trump determined that rare earths are “essential to national defense” and activated Section 303 of the Defense Production Act to allow the U.S. military to fund private-sector efforts to build a domestic refinement capability.

The U.S. Department of Defense on Feb. 1 awarded more than $30 million to Australia’s Lynas Rare Earths Ltd. to build a Texas processing facility.

“Upon completion of this project, if successful, Lynas will produce approximately 25 percent of the worlds’ supply of rare earth element oxides,” the Defense Department stated in a press release.

Last year, the U.S. firm MP Materials also received the Pentagon funding for its rare earths separation facility in California.

To redevelop the U.S. rare earths supply chain, a bipartisan group of House and Senate lawmakers introduced proposals last year aimed at boosting domestic capabilities through tax incentives.

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On 3/2/2021 at 1:50 AM, ladyGrace'sDaddy said:

We live in a time when it has become clear that nothing our government says can be trusted and everything we hear from the media must be interpreted by that which our hearts tell us. 

 

For example,

When you see a headline like the one below. One must measure the recent events that we know of and consider the political dispensation of deceit in which we live, then read between the lines. 

 

The most anti American party claiming to want to "CLEAN UP" the world from capitalist pollution and implement their 'New Green Deal' just loosened up mining restrictions so as to produce more precious metals.  

 

Take that admittance with the knowledge of the Silver squeeze and recent reactions from the Fed along with JP Morgan and what do you get? Or allow me to say this another way, try going online and buy some Gold or Silver. 

 

You are going to pay higher premiums and wait several weeks for delivery. (Something I suggest you do now). 

The Federal government, The Central bank and the major Custodians of the Silver and Gold markets are running in terror for their lives. Average American people have unknowingly discovered the major flaw in their strategy. Their control and manipulation of precious metals in order to shore up their Fiat Ponzi scheme has been given it's death blow. By squeezing these markets we have left the PTB in complete confusion.

 

The upside is those who have purchased precious metals will come out of this mess on top. 

 

The downside is that once their Fiat Ponzi scheme fails, things are going to get really hard for everyone in the short term. People, PLEASE take heed and prepare accordingly. 

 

 

Wheel loaders fill trucks with ore at the MP Materials rare earth mine in Mountain Pass, Calif., on Jan. 30, 2020. (Steve Marcus/Reuters)
Wheel loaders fill trucks with ore at the MP Materials rare earth mine in Mountain Pass, Calif., on Jan. 30, 2020. (Steve Marcus/Reuters)MORE
BY EMEL AKAN
March 1, 2021

 

WASHINGTON—The Chinese communist regime has recently signaled that it could leverage its dominance in rare earth minerals, raising alarm bells in the United States. The threat has prompted the Biden administration to take action to reduce U.S. reliance on China for rare earth metals that are used in everything from smartphones to electric vehicles to fighter jets.

In 1992, Chinese leader Deng Xiaoping predicted the importance of rare earths to China’s future when he famously said, “The Middle East has oil. China has rare earths.”

Today, China is the dominant global supplier of rare earths, a group of 17 chemical elements used in the production of critical components of key technologies, which could easily be used as a weapon against other countries in a trade war or a conflict.

Beijing has already demonstrated that it could use rare earth elements as a retaliatory tactic. In 2010, China abruptly cut off exports of these elements to Japan during a conflict over a fishing boat. And at the height of the U.S.-China trade spat in 2019, Beijing sought to use rare earth exports as a “counter-weapon” against the United States.

And most recently, the Chinese regime officials reportedly explored whether curbing the export of rare earth minerals to the United States could cripple its production of F-35 fighter jets.

Faced with the threat of losing access to rare earth materials, the Biden administration is now seeking ways to reduce America’s deep reliance on China. President Joe Biden on Feb. 24 signed an executive order to “help create more resilient and secure supply chains for critical and essential goods."

 

The order focuses on choke points in the supply chains of four key products, including rare earth minerals, semiconductor chips, large-capacity batteries for electric vehicles, and pharmaceutical ingredients.

 

It 

directs federal agencies to immediately conduct a 100-day review to identify supply chain risks and vulnerabilities for these key products.

These are the products where the vulnerability has become very clear, according to Julie Swann, a supply-chain expert who heads North Carolina State University’s department of industrial and systems engineering.

“We don’t even know the full extent of the vulnerability, or the potential impact. I think this is just the beginning,” Swann told The Epoch Times.

 

According to her, there are likely other products and supply chains that will come under review as the administration continues to detect more vulnerabilities.

It’s unclear what actions the administration will take following the review; however, there are different options depending on the product.

Speaking at a press conference, Peter Harrell, senior director at the National Security Council for international economics and competitiveness said “all tools are on the table” for the administration.

“We’re expecting we’ll be using a mix of incentives to encourage production here. We’re looking at ways to ensure there’s surge capacity available for things that might need to be ramped up quickly—stockpiling,” he said.

He added that the administration would also consider working with allies and partners to take collective actions to address future supply shocks.

According to Swann, it is expensive for any country in the world to try to be self-sufficient, and have all of the specializations and capabilities.

“What is likely to be a more sustainable approach is to make sure that a supply chain is robust to disruptions,” she said rather than just focusing on becoming entirely self-sufficient.

Rare Earths Are Abundant

Rare earth minerals are critical to the U.S. economy and national security. They play a vital role in many industries including consumer electronics, green technologies, medical tools, and defense. Rare-earth magnets, for example, are used in many hybrid and electric vehicles. These metals are also key to the production of weapon guidance systems, jet engines, sonar devices, and laser weapons.

Rare earth elements are abundant and easy to mine, nonetheless, they are called “rare” because they are difficult to separate and refine into a usable form.

In the 1980s, the United States was the world leader in the production of these elements and almost all U.S. production was coming from the mine operated near Mountain Pass, California, which was closed in the 1990s. The mine was reopened in 2013 after China restricted supplies.

In recent decades, China has gradually become the dominant power in both the mining and the refining of these elements. Today, China controls about 80 percent of the global supply of rare-earth minerals even though it contains only a third of the world’s reserves, according to U.S. Geological Survey (USGS) data.

Currently, the United States is fully dependent on imports of rare earths, with 80 percent directly coming from China.

China can “absolutely” limit exports of rare earths to the United States, according to Lewis Black, CEO of Almonty Industries, a Canada-based mining company that is specialized in tungsten, a rare metal.

“The mechanism to do so has always been in place and was recently strengthened in December 2020 with new laws that allowed the state to stop exports if deemed in the national interest,” Black told The Epoch Times, referring to Beijing’s new export control law, which came into effect on Dec. 1, 2020.

To counter this threat, the United States has the potential to catch up and expand the mining and refining domestically.

“Rare earths are plentiful but it’s really a question of whether local communities would welcome a mine opening up nearby,” Black said.

The processing required to produce these rare earth minerals is environmentally challenging and it also threatens human health.

“Mining left the United States in part not just because of cost but also for the optics as communities often objected to the presence of a mine,” Black said.

The biggest hurdle, he noted, would be reassuring the public that these mines can operate safely and environmentally responsibly.

“Most people have heard or seen horror stories regarding older mines and given mining has not been a dominant industry in the USA for a generation this reeducation of the public regarding modern methods will take time,” he said.

While rare earths are critical to the economic and national security of the United States, it’s unclear whether the Biden administration may promote ramping up domestic production and processing due to environmental challenges.

Japan Conflict

Beijing abruptly cut off rare-earth exports to Japan during a diplomatic clash in 2010 after a Chinese fishing boat collided with two Japan Coast Guard ships in the East China Sea. The export ban sent the prices for raw materials through the roof. The huge price spike worked against Beijing, as it encouraged new production in countries such as Australia and destroyed demand for Chinese rare-earth metals.

The resulting supply chain disruption led Japan, the United States, and the European Union to jointly launch a dispute settlement case through the World Trade Organization in 2012, which was ruled against China two years later.

An increase in prices led to an influx of capital in the rare earth mining industry, which helped kick-start mining projects in other parts of the world. However, this exploration boom was short-lived as the supply threat passed and the prices came down.

“That’s also the case now,” according to Harvard Business School professor Willy Shih.

“The real question is whether domestic sources will be economically sustainable over time,” he wrote in a recent op-ed in Forbes.

Shih believes the biggest challenge the United States faces in becoming self-sufficient in rare earths is economics.

A group of investors in 2018 restarted limited production of at least two rare earth elements at the mine in Mountain Pass. As a result, the domestic production of critical rare-earth mineral concentrates jumped 44 percent in 2019, making the United States the largest producer of rare-earth mineral concentrates outside of China, according to USGS. But almost all raw materials had to be shipped to China for processing because it creates toxic wastes that make it hard for the United States to deal with it.

In July 2019, President Donald Trump determined that rare earths are “essential to national defense” and activated Section 303 of the Defense Production Act to allow the U.S. military to fund private-sector efforts to build a domestic refinement capability.

The U.S. Department of Defense on Feb. 1 awarded more than $30 million to Australia’s Lynas Rare Earths Ltd. to build a Texas processing facility.

“Upon completion of this project, if successful, Lynas will produce approximately 25 percent of the worlds’ supply of rare earth element oxides,” the Defense Department stated in a press release.

Last year, the U.S. firm MP Materials also received the Pentagon funding for its rare earths separation facility in California.

To redevelop the U.S. rare earths supply chain, a bipartisan group of House and Senate lawmakers introduced proposals last year aimed at boosting domestic capabilities through tax incentives.

Always a good idea to have tradable items stocked up too.  

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Signs of a Bottom in Gold and Silver Prices

by: Stefan Gleason
 
 Money Metals News Service
 
 March 8th, 2021
 
 

The U.S. dollar’s value is set to get diluted by another $1.9 trillion.

On Saturday, Senate Democrats narrowly passed their massive COVID relief bill on a party line vote. It includes $1,400 in additional free-money handouts for most Americans, $350 billion in aid to state and local governments, and hundreds of billions more for various other pet programs.

Upon approval by the House of Representatives and President Joe Biden’s signature, expected later this week, another wave of government-induced inflation will cycle through the economy.

The impact on commodity and precious metals markets won’t necessarily be felt immediately. But investors who can see what’s coming will want to position themselves ahead of the trend.

Last week saw some smart money rotation into mining stocks ahead of a potential bottom in precious metals spot prices. The HUI gold miners index (NYSE:HUI) finished out the week with a 4.7% gain, despite continued weakness in metals markets.

Gold Bugs Index - March 5, 2021 (Chart)

This positive divergence is a bullish sign. It may indicate that a significant bottom is in, or in the process of forming, in gold and silver markets.

After becoming deeply oversold, the HUI could now rapidly push toward to its uptrending 50-week moving average line on a rally.

That would likely coincide with gold prices recovering off their similarly oversold condition.

Since peaking 7 months ago at over $2,000/oz, gold has trekked lower in a large corrective pattern. That correction is now getting long in the tooth, assuming as we do that it’s occurring within the context of a larger, structural bull market.

Silver, meanwhile, is seeing a huge positive divergence via the physical versus the paper markets. Robust physical bullion buying by investors continues to defy lackluster paper price moves.

Gold Price - March 5, 2021 (Chart)

Bullion dealers have been absolutely slammed with demand for coins, bars, and rounds this year – draining available inventories in the process. While Money Metals is still well stocked, many other dealers are nearly wiped out or are quoting month-long delays on many items.

Availability has actually improved some since the height of February’s buying frenzy. However, scarcity-driven premiums on popular products such as Silver Eagles remain elevated.

It is unusual for extremely stressed conditions in the bullion market to persist while spot prices merely bounce around within a capped range.

Although frustrating for bulls, the people who should be nervous in this environment are the bears – in particular, the naked short sellers. They face unlimited risk in the event of a price spike driven by physical shortages.

A demand strain on minted bullion products doesn’t necessarily imply a shortage of silver itself.

At least not immediately.

Industrial users of silver normally command a much larger share of the total physical market than investors. But the pace of investment buying over the past year (nearly 600 million ounces) has shifted the scales to the point where it actually exceeds total industrial demand.

Of course, industrial demand for silver suffered last year due to economic lockdowns that are gradually being lifted. As manufacturers ramp back up, so will their need for silver.

But industrial demand can’t return to normal at the same time as investment demand remains elevated without generating a massive supply deficit. These powerful dynamics of physical supply and demand will ultimately exert pressure on prices – perhaps putting a real “squeeze” on paper silver short sellers.

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