National Security Trumps Globalization & Free Trade in the Critical Minerals Race
Apparently so. The CMI Table of Comparative Critical Minerals’ Lists below tells the story. But, first, some background.
Apparently so. The CMI Table of Comparative Critical Minerals’ Lists below tells the story. But, first, some background.
If you possess physical gold you don’t face that risk. You also have the potential for appreciation. We’re at the beginning of trends that are going to increase the demand for gold, and inflation and geopolitical tensions will determine the rate at which gold increases. This year gold will appreciate versus the dollar, and also over a three, five and 10-year basis.
The U.S. dollar will be dethroned as the sole global reserve currency, leaving a bifurcated monetary system with the BRICS (Brazil, Russia, India, China, and South Africa) and their allies using a reserve currency backed by gold, alongside Western countries retaining the U.S. dollar.
Tin, tantalum, tungsten and gold. All of these minerals are found in our electronics and all are considered conflict minerals, due to their potential origin in the Democratic Republic of Congo. While the African country contains an estimated $24 trillion in untapped mineral resources, it remains mired in poverty and violence, and mining these four metals can help fund armed conflict in the region.
The United States needs a secure supply of critical minerals to protect its national security.
Gold will increase in value while the U.S. dollar drops, said Paulson & Co. founder John A. Paulson. And that is the hedge fund manager’s outlook for this year, the next three years, and the next five years.
The gold market continues to struggle below $1,900 an ounce; however, long-term, one analyst said that there is still plenty of value in the precious metals space, and it’s only a matter of time before gold and silver go higher as investors underprice the risk of a recession this year.
Euro players unhappy about American green tech subsidies… and everybody’s worried about China
Central banks bought 1,136 tonnes of gold last year, the most since 1967 and the second-highest amount since 1955.
Given their pivotal role in the green economy future of mining, there has been an ever growing demand for battery metals. With the DRC endowed with these minerals, the country needs a platform for dialogue on how to leverage the demand.