<html xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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--></style></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;mso-ligatures:none'>From:</span></b><span style='font-size:11.0pt;mso-ligatures:none'> spike@rainier66.com <spike@rainier66.com> <br><b>Subject:</b> not that rare earth<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>>…A few days ago, I speculated that the invisible hand of capitalism would find alternative sources for rare earth elements. Well the invisible hand did so. There are other nations besides China which are advanced in chemical engineering, which have rare earth ore and which likewise have little concern over pollution or can deal with it effectively…There is a fun follow up to this post, to follow when I return. spike<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Upon hearing there was a “rare” earth “crisis” and of course never wanting to risk letting a crisis go to waste, I began looking at investment and profit opportunities related to “rare” earth elements. I looked at the critical applications of those materials for which China dominates (and controls) the world market, along with the applications: electronics, electric motors, generators and electric power storage.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>Well OK then, when evaluating the profit possibilities, one must take into account which of those require the most material. The key insight here is that a shortage of REEs is nearly irrelevant to electronics. Reasoning: they don’t need much, and it goes into a very high-value product. If it costs a few bucks more for an advanced processor, so be it. But if it is in a magnet going into an electric car, the REE spot price is far more important: it costs a lot more, and car parts are far more price critical.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>OK then. The electronics industry will find a way (do let me assure you.) That allows speculators to focus on cars, generators and (maybe) electric storage, which uses a lotta lotta the stuff. Hipsters, do check my reasoning on this please. I am open to suggestion.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>From there I go to a personal anecdote which is influencing my investment decision, but dang I must end there for another accursed errand which cannot wait. More later,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'>spike<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt'> <o:p></o:p></span></p></div></body></html>