04-12-2010, 02:50 PM
I just paid $5 bucks for a 10-pack of 1/2-inch rare earth magnets. That's a bit less than I paid for the same thing last year. If there's a shortage, why are prices still so low?
Answer: There's no shortage.
We don't want China to have a monopoly and opening up new mines could cost billions of dollars. U.S. mining companies don't want to compete with China so they're pushing Congress to fund the whole thing. (They're selling it as both an "employment" bill and as a "national security" bill.)
Meanwhile, Greenland has more rare earths than us and most of Africa has decent RE resources that they are just beginning to exploit. Unless they form a cartel, China's control over the market is probably not going to last out the decade.
...
I think the helium shortage is much more serious. I like balloons. Those mini helium tanks they sell at party stores have doubled in price over the last decade.
Answer: There's no shortage.
We don't want China to have a monopoly and opening up new mines could cost billions of dollars. U.S. mining companies don't want to compete with China so they're pushing Congress to fund the whole thing. (They're selling it as both an "employment" bill and as a "national security" bill.)
Meanwhile, Greenland has more rare earths than us and most of Africa has decent RE resources that they are just beginning to exploit. Unless they form a cartel, China's control over the market is probably not going to last out the decade.
...
I think the helium shortage is much more serious. I like balloons. Those mini helium tanks they sell at party stores have doubled in price over the last decade.