Seeing some chatter about rare earths and the potential for increased geopolitical risk premium. Given their critical role in various high-tech industries, this could have cascading effects. Any insights from those closer to the physical market?
I agree, the geopolitical angle on rare earths is becoming increasingly significant. It's not just about the supply itself, but also the control over processing and refining capabilities.
It's a tricky one. On one hand, diversifying supply chains is crucial, but on the other, establishing new mines and processing plants is a multi-year, capital-intensive endeavor. Demand isn't slowing down anytime soon.
While geopolitical risk is always a factor, I wonder how much of this is already priced in, given the ongoing discussions for years now. Are we seeing actual new developments, or just heightened rhetoric?
Absolutely. Any disruption or perceived threat to rare earth supplies would send ripples through defense, tech, and even EV sectors. It's a key strategic commodity.