As seen on:
CBS moneywatch ~ The Miami Herald
Upcoming shows:
May 8-10th, Uruguay Offshore Investment Conference 2013 | May 13-16th, Moneyshow, Las Vegas 2013 | May 15-18th, Wealth and Liberty preservation 2013, St Kitts | June 2-4th, Private Wealth Management Summit Spring 2013, Ritz Carlton, Atlanta | October 9-13th, 2013 Total Wealth Symposium
Molybdenum the Metal with Few Substitutes
Rare Industrial Metal - Molybdenum
Recently molybdenum has been in the news. China Molybdenum has announced that it will be launching an IPO on the Shanghai exchange later in the year. Swiss Metal Assets has also decided to add Molybdenum to its, ¨Construction and Engineering¨, basket of metals joining tantalum, tungsten, chromium, zirconium and cobalt.
Molybdenum is a refractory metal with the symbol of Mo on the periodic table of the elements and an atomic number of 42. This rare strategic metal was discovered in 1778 by a Swedish scientist Carl Wilhelm Scheele. Molybdenum has the sixth highest melting point of all elements. With a melting point of 2,623°C (4,753°F) only tungsten, rhenium, carbon, osmium and tantalum boast a higher melting point.
The largest producer of molybdenum is China followed by Chile, United States, Peru and Canada. Molybdenum is primarily a bi-product of copper and tungsten mining with a few mines producing it as a principal ore. Total world production is approximately 230,000 metric tons per year according to the USGS (United States Geological Survey).
The use of molybdenum is extensive. There are very few substitutes for the metal. This keeps the demand high. Molybdenum has an extensive list of uses. The top use is in alloys which uses about 70% of all the metal available each year.
Here is a list of the uses of Molybdenum:
- Alloys in construction
- Superalloys in aviation and rocketry
- Lubricants for high temperature applications
- Catalysts
- Alloy with steel to make stainless steel
- Pigments
- Electronics
- X-ray tube components
- Applications to protect against heat
- Nuclear industry
- Solar industry as an electrode material in CIGS (Copper, Indium, Gallium and Selenide) Panels
The future of Molybdenum looks bright with the continued expansion of the green economy around the world. The solar industry growth will continue to use significantly more of the rare metal in CdTe (Cadmium Telluride) panels and the CIGS panels. The market for CIGS solar panels are projected to double by 2015. This will put significant pressure on the molybdenum market as well as the rest of the rare strategic metals.
What Should Silver and Gold Investors do?
Today there was an article on CNBC telling us that the Bull market in silver is finished. Last week we heard that the Bull market was finished in Gold. What is an investor to do with all the noise around us? When silver was approaching $50 in June 2011 the media was happy to tell its viewers and readers to buy. It is very difficult to focus on the end game when the media continues to get it wrong.
The public keeps falling for the same trick year after year. Peter Schiff, Congressman Ron Paul and Marc Faber all said that the real estate bubble would burst while the media laughed at them. Today we have the media telling us that it is ok to bring our hard earned currency back into the stock market. Does all seem well to you? My gut feeling is telling me that something is terribly wrong with the system and that the risk of a serious crisis is still a possibility.
I would like to share with you my approach to precious metals investing. My approach may seem ultra conservative, but it has worked for almost a decade. Physical metal in my possession or 100% allocated in my name in a private vault is the only way to go for my family. I do not worry about the ups and downs of the silver and gold market. When it is time for a purchase, I do not try to time the market. When the cash is available I place an order. People ask me, ¨Randy why are you not worried about silver and gold crashing?¨ My reply is easy, do you really think that the governments around the world are going to show restraint when it comes to devaluing their currencies?
Here are a few reasons to not trust currencies.
- China has signed 16 currency trade agreements bypassing the US Dollar.
- Ben Bernanke and the Fed have announced that they want to continue to devalue the US Dollar.
- Trade wars, nations trying to keep their products cheap by devaluing their currencies, recently Brazil said the government will use this tactic.
- Governments around the world are devaluing currencies to pay off national debt, instead of raising taxes. Raising taxes is political suicide.
The other question people ask is, “when will you sell?¨. The answer to this question is a very personal one, but my approach is pretty simple. I have a set goal for the value of my metals. When the price reaches that value, I will then sell my silver and gold and buy real estate or possibly equities. For me the precious metals are a tool to build wealth. When I sell, I am just moving to a different asset class. When I can buy a $100k house for 600 ounces of silver it will be time for me to sell. Similar to everyday life, if we don´t focus on set goals, we will accomplish very little. Even if it takes another five years for silver and gold to reach my price goals I am okay with it.
Will there be times in the climb forward, when silver and gold take large price drops? Of course there will be, but these are the times when the market just gave you the opportunity to buy more precious metals at a discount. I am just an average guy who wants to be able to sleep good at night. I don´t want to be worrying whether or not my call or put options are in the money. So if you want peace of mind, please do not listen to the media, focus on your goals and you will be ok.
Will the Federal Reserve Devalue the Dollar?
The news around the world has been rather interesting over the last few weeks. We have Iran trading Oil for Gold instead of PetroDollars. The Greek crisis still has not been solved while Italy, Spain and Portugal are struggling to stay solvent. China has signed fourteen currency swap agreements bypassing the US Dollar. The Federal Reserve has announced that it will keep interest rates at or near zero until 2014. The US has just raised its debt limit once again, with little opposition. We all know that 2012 is an election year in the USA which usually means very little will be done in Washington.
So what will we see this year? Will we see Deflation or Inflation? Currently I hear news out of the USA and here locally in Panama that items are going up in price. I just spent a week in San Jose, Costa Rica where one liter of Coca Cola was $2.50. They were just forced here in Panama to raise the minimum wage to $500 just so people could afford to survive. You can imagine the repercussions, many businesses will have to let employees go in order to keep the doors open. Here in Panama we use the US Dollar as our currency. Who is to blame for the inflation we are seeing? It is not the printing presses fault. It is the powers behind the printing.
Way back on November 21, 2002 there was a Federal Reserve Governor named Ben Bernanke, who gave a speech to the National Economist´s Club. In this speech he outlined exactly what he would do if he was Chairman of the Federal Reserve in the instance of a financial crisis or Depression.
- The Federal Reserve would lower the interest rate to zero
- Purchase Securities from Banks (GM, Chrysler)
- Increase the Money Supply
- Buy Countries Debt QE1, QE2, QE3 and QE Infinity
- Devalue the Dollar
I will not go into each of these scenarios individually. We all know that points one through four are already in play. The one that has not occurred yet is the devaluation of the Dollar. Mr. Bernanke calls himself a student of the depression. He has studied The Federal Reserve actions during that time. Here is an excerpt from that speech.
Ben Bernanke November 21, 2002
Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it´s worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt´s 40 percent devaluation of the dollar against Gold in 1933-34, enforced by a program of Gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States, year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934. The economy grew strongly, and by the way, 1934 was one of the best years of the century for the stock market. If nothing else, the episode illustrates that monetary actions can have powerful effects on the economy, even when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt´s devaluation.
Original speech can be viewed here
On April 3rd 1933 President Roosevelt declared the Presidential Order 6102.
All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933.
At this time Gold was valued at $20 per ounce. Shortly after the Gold confiscation was completed the Federal Reserve revalued Gold at $35 per ounce or a 40 percent devaluation of the currency. Remember that during this time the Dollar was backed by the promise of Gold.
In my mind Mr. Bernanke is telling us what he is going to do next if the economy does not respond to the other four measures that he has implemented. What would a 40% devaluation of the US Dollar do to your savings if everything is in US Dollars or a currency pegged to the Dollar? The devaluation of the US Dollar would be great for Gold, Silver, Home Values, Debt and the stock market. What about the people that do not have hard assets? People who live off Social Security, Government Subsidies, Fixed Incomes and Savings will have a difficult time. Imagine tomorrow you wake up and your savings has just been devalued 40%.
Growing up I was taught that putting your savings in the bank was important. Today it seems that the idea is no longer valid. What Mr. Bernanke has told us is that he will devalue the currency in order for the country to continue to have growth. What are you doing to protect your family and future?
By: Randy Hilarski – The Rare Metals Guy
Hey US Treasury Leave the Pension Funds Alone
President Obama and Tim Geithner
Tim Geithner has announced that the US Treasury is dipping its fingers again into the Federal Employee Pension Fund. Over the last few years governments are getting more and more comfortable raiding the funds set aside for its citizens. The US has been raiding Social Security for years bringing it to the brink of insolvency or should I say a corpse. Here is the breakdown of the nations that have decided to get careless with its citizens retirements.
- Portugal raided its Pension Fund to meet its deficit requirements to the tune of 5.6 Billion Euros.
- Ireland raided its Pension Fund to meet its deficit requirements to the tune of 24 Billion Euros.
- Argentina raided its Privately managed Pension Fund to meets it deficit requirements to the tune of 29 Billion Dollars.
- Hungary is attempting to change 15 Billion Dollars of Private Pension Funds back into the State system.
The US Treasury decided it was ok to suspend reinvestments in the Federal Pension Fund. Over the last 20 years the US Treasury put its fingers in the cookie jar six times to avoid hitting the debt ceiling. The Obama administration has its back against the wall. I believe they fear another fight over the debt ceiling, during an election year. Tim Geithner has effectively kicked the can down the road for a few months. The debt ceiling needs to be addressed, this is not going away. We all know that they will just raise the debt ceiling again. Do you think they will ever cut spending? I have my doubts.
How about IRA´s and 401k´s Mr. Geithner? There is around 6 Trillion Dollars of assets residing in IRA´s and 401k´s. That is a substantial amount of money and seems ripe for the picking. The US Federal Government has shown that it has no reservations about taking what does not belong to them. If Social Security was a piggy bank for politicians just think how they might look upon our IRA´s and 401k´s.
What would the US Treasury do first? They might require US citizens who put a portion of their salary into 401k´s and IRA’s to invest a certain percentage into low paying US Treasuries. Then imagine that situations further deteriorate. The US Treasury then decides that you have to increase your purchases of US Treasuries. Then the worst case scenario happens and the US defaults or hyperinflation occurs rendering your retirement portfolio worthless. I hope it never gets this far, but we prepare for the worst and hope for the best. The Federal Reserve is looking more and more primed for QE3. They will not stop, it might as well be called QE Infinity. Prepare yourself, I know I am.
Critical Metals Vital to Our Lives in Tight Supply
Rare Earth Elements
We begin 2012 similar to how we started 2011 when it comes to rare earth, rare technical metals and rare industrial metals. China has over 90% of production and refining. The US and EU governments are scrambling to legislate, source, produce, open and reopen mines. The West has decided to continue down the road of the idea that the markets will take care of the supply and price of these metals. What is alarming is how easily the West was lulled to sleep by China´s ability to supply the world its metals cheaply and efficiently. The West concentrated on making money trading stocks and futures that dealt with these commodities. China concentrated on building the most extensive mining industry in the history of man. Here in 2012 the Department of Energy in the USA has approved a spending bill that includes $20 Million to focus on the supply issues of these metals.
The metals I am speaking about are so vital to our everyday lives. These metals are found in your mobile phones, computers, LCD and LED TV´s, hybrid cars, solar power, wind power, nuclear power, efficient lighting and medical technologies. Here is a list of metals that have been deemed critical.
- Indium RIM (Solar, Mobile Phones, LCD)
- Tellurium RIM (Solar, Computers, Semi-conductors)
- Gallium RIM (Solar, Mobile Phones, LED´s, Fuel Cells)
- Hafnium RIM (Processors, Nuclear, Lighting, Plasma Cutting Tools)
- Tantalum RIM (Capacitors, Medical Implants, Mobile Phones, Nuclear)
- Tungsten RIM (Nuclear, Armaments, Aviation)
- Yttrium REE (Lighting, Medical Technology, Magnets in Hybrids)
- Neodymium REE (Magnets in Wind power, Super Magnets, Hybrid Vehicles)
- Dysprosium REE (Computers, Nuclear, Hybrid Vehicles)
- Europium REE (Lighting, LED´s, Lasers
- Lanthanum REE (Hybrid Vehicles, Magnets, Optics)
- Cerium REE (LED´s, Catalytic Converters, Magnets)
RIM=Rare Industrial Metal REE=Rare Earth Element
The supplies of these metals could hold back the production of green technologies. According to the latest report by the Department of Energy, ¨Supply challenges for five rare earth metals may affect clean energy technology deployment in the years ahead¨. If Green technology is to become main stream, the costs of these technologies have to reach cost parity with traditional energy sources. As long as there are serious supply issues with these metals the costs can´t reach these levels. The other option is finding alternatives like Graphene and Nanotechnologies.
The US and EU need supply chains of the metals that include both mining and refining of these metals. Relying on sovereign states for critical metals such as these, leave a nation vulnerable to outside influence in both politics and economics. Environmentalists have succeeded in influencing politicians to close mines throughout the West. Politicians have legislated the mining industry into the position it is in today. The Western nations must start now to build its supply chain or continue to be at the mercy of the BRIC (Brazil, Russia, India and China) nations for its metal needs.
The best the West can do now is provide, enough metals to meet its own demands. China has reached a point where it can now demand that certain industries produce their products there. If a company decides to try to produce the product in another country China will make producing that item cost prohibitive outside of China by raising the prices of the metals.
The demand for the products these metals are used to produce, are showing few signs of slowing down even in a so-called recession. Governments are subsidizing Green technology, people are buying mobile phones across the planet and everybody wants a nice flat screen TV. Will 2012 pass without countries truly taking this opportunity to fix the problem or will they step up and make the hard decisions which can put the countries back in control over their own destiny?
China, 14 Currency Swap Agreements and Counting
Renmimbi Yuan
Since the financial crisis of 2008 China has been signing agreement after agreement with other sovereign nations for bilateral currency swaps. China and these other nations are trying to diversify their central bank foreign – exchange reserves out of U.S. Dollars. China would like its currency, the Renmimbi, to play more of an important role in the world financial system. Here is a list of the fourteen nations that have already signed bilateral currency swap agreements with China.
- Pakistan
- Argentina
- South Korea
- Indonesia
- New Zealand
- Malaysia
- Belarus
- Hong Kong
- Japan
- Uzbekistan
- Thailand
- Turkey
- Singapore
- Kazakhstan
After the collapse in 2008 Chinese exporters were finding it difficult to do international trade as they were unable to settle their deals with Yuan (Renmimbi) and were forced to settle in Dollars. The currency swap agreements will make it easier for now for international companies and traders to receive financing in Yuan during difficult economic periods. If they can settle their deals in Yuan (Renmimbi) it would reduce their risk. China and these nations would like to keep trade flowing even in the event of another financial crisis.
What is a Currency Swap? Essentially a currency swap is a transaction between two nations to exchange the interest and principal payments on loans issued by two different nations. The two countries gain access to foreign exchange reserves. This limits the nations exposure to exchange rate fluctuations because they can pay back the liability associated with its currency instead of in Dollars.
Why is China so concerned about the U.S. Dollar? China has grown suspicious of the US government unwillingness to curb its spending and printing of its currency. This runaway printing has and will continue to devalue it dollar-denominated assets. Recently we are hearing that the US Federal Reserve will quietly implement QE3 (Quantitative Easing 3).
China would like the world to look upon its currency as a store of value similar to Gold and the Dollar. This privilege has given the US the ability to expand and borrow. China would also like this ability. If nations hold reserves in Yuan (Renmimbi) it is extending credit to the Chinese government. These currency swaps are the first steps in Yuan (Renmimbi) transforming in to a global currency. How many more countries will sign agreements with China in 2012? How will the USA and the IMF react? I look forward to seeing the results of China spreading its influence.
Randy Hilarski – The Rare Metals Rare Earth and Rare Industrial Metals Specialist
Web: www.swissmetalassets.com
Why Buy and Store Metals Offshore
- Offshore Storage Facilities for Rare Earth and Industrial Metals
Today more than ever it is important for a person to diversify the location of their assets. If you are one of my readers there is a good chance that you believe in Precious and Rare Metals as a form of protection against inflation, and governmental shenanigans. Metals give a person piece of mind like very few other investments can.
Some of the benefits of Metals include.
- Paper assets can depreciate to zero, Metals will not.
- Metals are a hard asset that can be handled, free of third party interference.
- Metals are a store of value.
- Metals are both a form of money and used in industry.
- Metals are highly liquid.
Why take your metals offshore? Inflation according to the US government is running close to 3% and banks are paying a paltry 1-2% for interest. People are increasingly worried about government seizure of their paper assets and hard assets. Recently Portugal decided to take over its pension funds until the financial crisis passes. As we know once a government takes over something they rarely give it back. How long do you think until nations like the USA, UK, Germany, Canada and Australia start invading their pension funds? In 1933 the US government under the leadership of Franklin D. Roosevelt required US citizens to turn their Gold in for currency. Do you think that the governments of today are any less bold?
The four main benefits of offshore investing include.
- Asset Protection
- Confidentiality
- Tax Sheltering
- Diversification
There are many different ways a person can buy and store metals internationally. A client could buy and store in their personal name. They could store their metals in an offshore IRA. They could purchase their metals through a company that they control. They could use a Trust or an offshore structure that they control. This opens up a wide range of opportunities for the savvy metals buyer.
In the spring of 2012 we are tentatively scheduled to open our latest storage facility in Panama. We have had many clients asking us if we knew of an option for them to store their metals closer to home. Our waiting list of clients looking to take advantage of this opportunity continues to grow. It will be located in the Panama Pacifico Free Zone which is the old Howard Air Force Base in the Canal Zone. Currently we have our facility in Zurich, Switzerland in the Swiss Free Zone. If you would like more information to buy Metals or to be added to our Panama storage wait list please feel free to contact myself or the team at Swiss Metal Assets.
Customers ask, How would I transport the Metals to Panama? Brinks is the logical choice for me. They offer door to door service for the client. You can learn more on their website.
The financial situations are getting more and more complicated for nations throughout the world. Don´t you think it is time that you protected your assets?
By: Randy Hilarski – The Rare Metals Guy
Gallium Helping Us Stay Connected
- Rare Earth Metal – Gallium
The element so instrumental in the success of CIGS or Copper Indium Gallium Selenide solar panels garners little respect. If you do some research on Gallium you will see very few articles on this element. What you see is people talking about how to make melting spoons, and talk of the metal melting in your hand due to its low melting point of 85° F or 29.8° C. Here we are going to go over the history of Gallium and its uses in technology today.
Gallium has the symbol of Ga and the atomic number 31 on the periodic table of the elements. In 1875 Paul Emile Lecoq de Boisbaudran discovered Gallium spectroscopically. He saw Gallium´s characteristic two violet lines. Gallium does not occur free in nature. Lecoq was able to obtain the free element using electrolysis.
Gallium is found in bauxite, sphalerite and coal. It is primarily extracted from Aluminum and Zinc production. The exact amounts mined and recycled are very difficult to quantify. According to the United States Geological Survey the total amount mined in 2010 was approximately 106 t and the total recycled was approximately 78 t. Gallium supply is highly reliant on other Aluminum and Zinc mining for its supply, when the prices of the base metals fall the amount of Gallium available will be highly affected. Similar to other rare industrial metals, mining companies will not invest in the production of these metals because the markets are so small.
The uses of Gallium are found all around you. Semiconductors, LED´s, medicine, electronic components, CIGS solar and new tech like IGZO (Indium, Gallium, Zinc and Oxygen) LCD screens. The new iPhone 5 will have this kind of LCD. Over 90% is used in electronic components in the form GaAs (Gallium Arsenide). Recently CIGS solar panels reached an unprecedented 20.3% efficiency once again proving that CIGS is the most efficient form of solar on the market. The technology that will greatly increase the use of Gallium is smartphones. Analysts predict that smartphone use will grow at a rate of 15-25% over the next several years. Recently LED´s backlit screen TV´s and computer monitors have been all the rage. The LED screen market will continue to grow, further putting strain on the small Gallium supply.
The top producers of Gallium are China, Kazakhstan and Germany. Once again China has a strong position in the production of a rare industrial metal. The difference with Gallium is that almost 40% of the metal produced every year is coming from recycling.
With all of the new technologies coming along using Gallium what will the market for this metal look like in a few years? Unlike some metals like Silver and Gold, Gallium is not traded on the LME (London Metal Exchange). This makes the price of Gallium very stable. Rare industrial or technical metals are small markets with big possibilities. So if you are looking for an investment that is rarely talked about, Gallium could be a good option.
By: Randy Hilarski – The Rare Metals Guy
iPhone 5 to Possibly Have Sharp IGZO 4¨ Display
IGZO Graphic
Rumors are swirling around the net about what Apple is going to do about the new display for its iPhone 5. We know that it is going to be an IGZO (Indium, Gallium, Zinc , Oxygen) display. We also know that it will be 4 inches. What I do not know for sure is the manufacturer of the display. Some speculate Sony and Hitachi others say Sharp. From what I have been following it looks like it will be Sharp. Whoever makes the display the faithful are bound to be thrilled. These panels are also bound to be used in the next Apple iPad
According to Shuji Sako of Sharp, ¨The IGZO LCD panel´s performance outclasses anything attainable with conventional amorphous-silicon TFT panels.¨ IGZO transistors have mobility of its electrons up to 40 times higher than amorphous-silicon thin-film transistors. The IGZO transistors can also be made smaller and have the same performance. This helps the display save 30% in energy consumption and higher resolution over the traditional amorphous-silicon TFT panels. The display is said to perform at 330 dpi. The IGZO display would also enable the iPhone 5 to be thinner.
The demand for small and mid-size LCD panels is growing rapidly putting strains on the supply chain. What many tech blogs fail to say is that this amazing growth also puts strains on the natural resource supply chains. The technology needs Indium, Gallium and Zinc. Two of these metals have been deemed to be at Critical Levels according to the British Geological Survey and the US Geological Survey. Over 95% of these rare industrial or technical metals are supplied by China. Even if the prices of the metals go up 100% the end user will see a very small price increase because such a small amount of the metals are used in each device.
By: Randy Hilarski – The Rare Metals Guy
Rare Earth Elements are not the same as Rare Industrial Metals
Rare Earth Elements
Randy Hilarski has also released a video on this article that can be watched by clicking here.
I read articles from other writers who often refer to Rare Industrial or Technical Metals as Rare Earth elements. I would like to take some time and clear up the issue. I deal with RIM’s and REE´s on a daily basis. The two might both be considered metals but that is where the similarities end.
First we have REE´s or Rare Earth Elements. These metals consist of 17 metals, the Lanthanides plus Scandium and Yttrium on the periodic table of the elements. These metals are in a powder form, making them difficult to assay and store. One important factor that is often mentioned is that they are not rare. This is very true, but finding REE´s in large deposits is difficult.
In the mining sector REE mines are standalone mines, that focus on the mining and refining of REE´s exclusively. Currently around 97% of all REE´s are mined and refined in China. Historically REE mining and refining has been a dirty business, which has affected the environment around the mines. The elements Thorium and Uranium are often found along with the REE´s in the deposits causing the slurry to be slightly radioactive when processed. The use of highly toxic acids during the processing can also have serious environmental impact. Many companies are trying to open REE mines but they are meeting headwinds, as nations and people do not want these mines in their backyard.
Over the last few years China has dramatically cut its export of REE´s. This and the increased need for REE´s have caused a meteoric rise in the value of these metals. The one area that very few people talk about is the role of the media combined with speculators in raising the value of REE ETF´s in particular. For the last couple years REE´s were the rock stars of the metals. The news has calmed as of late, but the supply and demand factors that caused the metals to soar are still in place. Recently China closed it BaoTao mine until REE prices stabilize.
Rare Earth Metal - Indium
Rare Industrial Metals, RIM´s or Technical metals are another group entirely. The RIM´s are made up of metals used in over 80% of all products we use on a daily basis. Without these metals you would not have the world of the 21st century with our mobile phones, hybrid cars, flat screen TV´s, highly efficient solar energy and computers. Some of these metals include Indium, Tellurium, Gallium, Tantalum and Hafnium. These metals really are rare compared to the Rare Earth Metals which causes a great deal of confusion. These metals are in a metallic form, stable and easy to store and ship.
RIM´s are mined as a by-product of base or common metal mining. For example Tellurium is a by-product of Copper mining and Gallium is a by-product of Aluminum and Zinc mining. The mining of the RIM´s currently are for the most part at the mercy of the markets for the base or common metal mining. If the Copper mines of the world decide to cut production due to Copper losing value, this will have a huge impact on the amount of Tellurium that can be refined. Up until now, because of the previous small size of the RIM market, many companies do not feel the need to invest money into better technology to mine and refine these metals. The RIM´s would have to be valued much higher to gain the attention of the mining industry.
When China cut exports of REE´s they also cut exports of RIM´s. This put pressure on the value of these metals. RIM´s have increased in value, but nowhere near the meteoric rise of the REE´s. Most of the metals increased in value around 47% in 2010 and 25% so far in 2011. There is still a lot of room for growth in the value of these metals (not based on speculation like REE´s) as demand is exceeding supply now and in the future.
For Example, when REE´s and the stock market recently fell sharply the RIM´s came down slightly in value but have held their own extremely well. On a further note, according to Knut Andersen of Swiss Metal Assets, ¨Even though prices of the Rare Industrial Metals continue to go up in value, consumers will eventually only see a very small increase in the price of the end products, because there is so little of each metal used to produce these products. Also if the people can´t afford a smartphone they will still buy less expensive phones that still use the same Rare Industrial Metals¨.
The need for RIM´s has risen sharply over the years and will continue to grow at astronomical rates. China, India, South America and the whole of Africa with hundreds of millions of new consumers are now buying and using computers and mobile phones to name just a few products.
The future is bright for the technologies and the Rare Industrial Metals that make them work and for anyone who participates in stockpiling these metals now to meet future increased demand.
By: Randy Hilarski – The Rare Metals Guy
China Now Controls the Solar Industry
Solar Panels
Recently American solar companies like Solyndra, Evergreen Solar and Spectrawatt have filed for bankruptcy. These events may lead investors to believe that Solar is finished.
The US solar industry was hit hard by announcements out of Europe that some nations, like Italy, were scaling back their expenditures on solar due to their debt crisis. At the same time we have nations like India announcing a US $19 billion plan to produce 20GW of solar power by the year 2020.
Where will the solar panels for this market be manufactured?
India does not have sufficient rare industrial metal inventories or rare earth metal production to meet the demands of the government plan.
China has positioned itself as the country with 97% control over the majority of rare industrial metals and rare earth metals needed to produce high efficiency solar panels.
What does this mean for companies producing solar panels?
Among many other reasons for restricting exports of rare metals, China wants companies to produce the products in China to keep its workforce employed. If companies want to import metals from China in to produce the panels in other nations they will have to pay much higher prices for the metals due to taxes, shipping, export costs and other import costs. Accordingly, The US manufacturers will have a difficult time competing with the manufacturers in China.
The other issue that the companies do not want to talk about is government subsidies and tax breaks. Jason Burack the co-author of the, ¨Dragon Metals Report¨, and owner of www.wallstformainst.com recently said, ¨Message to all CEOs in solar, “Switch immediately to the best Solar panel technology using materials like rare earths, rare industrial metals and graphene and stop relying on the government for subsidies to produce inferior technology panels the market does not want, also a successful long term business model for any company should not be to rely on getting all of your revenue and contracts from the government, which is what many solar companies have done¨.
There are three, ¨Thin-Film PV¨ kinds of solar panels.
1. CdTe or Cadmium Telluride with an efficiency of 6%-11%.
2. a-Si or Amorphous Silicon with an efficiency of 6%-12%
3. CIGS or Copper Indium Gallium Selenide with an efficiency of 10%-20%
CIGS Advantages:
A. Highest energy yield
B. No environmentally hazardous materials
C. You can mold the panels to fit many applications
D. They can possibly bring the cost of solar energy panels down to below $1 per watt.
The other technology on the horizon is graphene composite solar panels. They are made of copper, molybdenum and graphite. Molybdenum and graphite have both been deemed highly critical to national security for many nations. Once again China has a powerful position because they control over 80% of the graphite market. So once again China has the foresight to see the technologies on the horizon and has positioned itself to prosper.
Currently 89% of the total installed solar panels worldwide are located in Germany, Japan and the USA. In the coming years we will see a growing demand from China for its own solar needs. Between China and India the demand for solar panels will far exceed our current ability to produce the panels. The costs of solar are coming down and the closer we are to grid parity, the more use of solar we will see. Since many of the metals used to produce these panels have been deemed critical to many nations national security, the prices of these metals are bound to stay elevated. China has shown that it will continue to restrict the exports of the rare industrial and rare earth metals further tightening the supply chains.
By: Randy Hilarski – The Rare Metals Guy
Chromium, are Nations Hoarding Natural Resources?
Chromium Crystals
Chromium is a topic that you rarely hear about, but in today´s environment of uncertainty and the, ¨Great Worldwide Resource Grab¨, chromium gets more attention. Recently we have the EU and USA going into Libya (oil, lithium), Iraq (oil), Afghanistan (oil pipeline, rare earths), West Africa (cobalt, tungsten, oil, gold, timber and many more). Let us not forget China and the contracts that they are signing all over the world for their natural resource needs. This all makes for some very interesting times for nations and investors alike. Rare industrial metals are no different. Chromium has been in the news so it is time to explain its uses and background.
Chromium was discovered by Louis Vauqelin in 1797. Chromium is a blue-white metal with great corrosion resistance. It has the symbol Cr with an atomic number of 24. Chromium can be polished to form a very shiny surface and is used to plate other metals to form a protective layer.
The main use of chromium is in the production of steel where it is used as a hardener, corrosion resister and helps fight decolorization. Iron and chromium form Stainless Steel which is strong and has a high resistance to heat and decomposition. The two form one of the most versatile and durable metals known in the world. Stainless steel contains approximately 10% chromium. Chromium is also used in paints, coloring in glass, and as a plating agent.
According to the USGS the top producers are South Africa, Kazakhstan and India. South Africa produces almost 50% of all chrome ore. The three countries account for 80% of all chrome ore mined. Approximately 95% of all known reserves are located in Kazakhstan and the southern tip of Africa to include Zimbabwe and South Africa.
The background of chromium is interesting, but today we have a hot topic. India is thinking about a ban on exportation of chrome ore. This is after news out of South Africa that the, ¨National Union of Mineworkers¨, called for restrictions of chrome ore exports to China. It has been speculated that China has been stockpiling chrome ore in order to control future prices. Does this sound familiar? We currently have to deal with the manipulation of the rare earths and rare industrial metals by China. As of October 2011 India and South Africa have not followed through with the plans. The next few weeks and months will be quite interesting, we are seeing an increase in the need for chromium, with a possible decrease in available supply.
Today our world is full of uncertainty. Every day brings us news of something amazing. Governments are under pressure, people are suffering, companies are folding, wonderful inventions, worldwide internet connectivity, and resources are becoming scarce. I have learned that in times like this you can either complain or build a grand future. Many fortunes were made during the US Great Depression. We are living through a worldwide recession, when we come out on the other side natural resources will be needed like never before. Where are you putting your money and future?
By: Randy Hilarski – The Rare Metals Guy
Hafnium the Little Known Element with Huge Potential
Rare Industrial Metal - Hafnium
The metal that is starting to get a great deal of attention from the military industrial complex was already well known in the nuclear industry and in the semiconductor industry. This metal is hafnium. Hafnium was discovered in 1923 by a Danish chemist named Dirk Coster and Georg Karl von Hevesey in Copenhagen. Its symbol on the periodic table is Hf and its atomic number is 72. Hafnium is considered a transition metal and is found as an impurity in Zircon ore deposits. The percentage in Zircon ore deposits is about 15%. The producers of Hafnium are Australia 42%, South Africa 32%, China 11% and a few other nations with smaller amounts.
Hafnium in semiconductors is an emerging use. A few years ago Hafnium replaced some uses of silicon in the semiconductor industry. Hafnium has increased the speed of the microprocessors, decreased the size, and made them more efficient. These chips have lowered energy leakage by 20%. ¨Silicon valley¨ has now become ¨Hafnium Valley¨.
In aviation, hafnium is used in super alloys. Due to it being an excellent refractory metal hafnium has applications where heat resistance is needed. It is used in the, ¨exhaust end¨, of jet engines. The melting point is 2233° C or 4,051° F.
The one area that may see a large increase of use is in the nuclear industry. The control rods which capture the neutrons released from nuclear fission are made of hafnium. The future for nuclear still looks bright even after the accidents in Japan. According to the, ¨Nuclear Engineering Handbook¨ there are 439 plants in operation with over 320 more proposed for the future. To be fair there are some substitutes like the silver, cadmium and indium control rods now available.
In the news recently we have heard about the military industrial complex and their interests in hafnium. One gram of hafnium contains as much energy as 700 pounds of TNT. According to the, ¨New Scientist¨ magazine the US military is developing technologies to use hafnium in its future bombs. The technology is said to produce bombs capable of releasing energy thousands of times greater than conventional weapons. Dr. Bill Herrmannsfeldt of Stanford University is not convinced. The Dr. does not believe that the military should be investing money in technologies that have no scientific basis. As a precaution the Dr. is asking for an independent review of the technology to see if it is scientifically possible.
Worldwide production of hafnium according to the USGS is unknown but we can make a good estimation because we know that hafnium is a byproduct of zirconium mining. Hafnium is a 15% impurity in Zircon ore. The USGS states that 1200t of zirconium are mined per year this would give us approximately 180t of hafnium. Official production is said to be 70t annually. This is a very small amount compared to many other elements and because there is very little information about the amounts of production it makes it difficult to have exact figures.
Unlike many rare industrial metals hafnium is not primarily controlled by China. Australia is the world´s largest producer. The production of hafnium is expected to increase approximately 4-4.5% annually. Hafnium has increased in value tremendously over the years. For over 30 years it consistently could be purchased in the vicinity of $200,000 per ton, now we have prices approaching $1,000,000 a ton. That is quite an increase. Inflation or demand, either way hafnium is performing very well for the producers and investors of the metal.
By: Randy Hilarski – The Rare Metals Guy
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