The last time critical raw materials were mentioned was in WWII. The European Union has resuscitated the concept and lists critical materials in short supply:
Antimony
Indium
Beryllium
Magnesium
Cobalt
Niobium
Fluorspar
PGMs (Platinum Group Metals): platinum, palladium, iridium, rhodium, ruthenium and osmium.
Rare earths: yttrium, scandium, lanthanum and the so-called lanthanides (cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, rebium, thulium, ytterbium and lutetium)
Gallium
Germanium
Tantalum
Graphite
Tungsten
Well, blue monkeys notwithstanding, we shall have to keep mining on Pandora... What was the name of that large mining corporation? Its stock is sure to be a good long term investment.
PS: Mining shares are rocketing, as my friend Anon predicted. The reason, they say, is Australia's political change. A nice young lady is the new Chief and she is less inclined to tax mining companies.
6 comments:
I don't believe the "short supply" business. There are minerals everywhere, just not always in concentrations that are high enough to mine "cheaply". The definition of "cheaply" changes over time, so that, for example in the case of oil nowadays it pays to drill in water that is a mile deep. Short supply increases prices which brings out more supply or encourages substitution so the problem always corrects itself.
K
The list is not of short supply minerals but "critical supply". It is defined as one that is not under the (military) control of the European Union. American control is enemy territory.
I presume that the EU will emerge stronger and more centralized after the current fiscal crisis. Germany will take control and will seek to control its raw materials supply, as always did. The White Race is nos dead nor dying.
I would be more concerned about the Chinese than the Germans. I think WWII and the 50 year partition of German well and truly beat the imperialism out of the Germans - they are now as peaceful as sheep and young German boys have not the slightest interest in dying in order to secure the Volk's yttrium supply.
Lenin said that the capitalists will sell us the rope we will use to hang them with. As long as these materials exist anywhere on earth, they will be available to all for the right price. The idea that you have to physically control the point of origin is outmoded thinking.
The Europeans were more jaunty about becoming players on a global scale when the hatable Bush was president and there was no economic crisis. Now with a "lovable" (not really) Obama and a weak Euro is not the time for talk of empire. They will be lucky if they can hold the EU together, much less pursue a world empire.
K
Mining shares have reversed, probably because it looks as though the EU wil finally adopt austerity measures and might even force the US to do so as well.
Koko say, "Buy on the rumor
Sell on the news".
Anon.
The Oracle of Delphi was clearer than Koko's pronouncements. The situation is Europe is bad (Hungary's GDP contracted 8% in the year) and worsening (severe fiscal contraction). Is that rumor (buy) or news (sell)?
Rumor.
But the profits will be in inflated currency, according to Koko.
She says, gold has not yet peaked, but there will be a better appreciation out of other minerals which are actually utilized in the real economy.
Therefore, she likes mining stocks of companies with a broad spectrum of interests, not just gold.
Anon.
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