In This Issue
American Rare Earths is positioned to benefit from Trump
"Did you buy on the dip or did you miss the boat?" That is what Kitco was asking in an email this morning as it reviewed the gold price movements.
Once again we have seen how gut reactions are too emotionally charged. A 9% fall in the gold price was the correction many people were looking for but did they have sufficient conviction to act and buy on the dip? Probably not, is the most likely answer.
The macro arguments for a higher gold price are as strong as ever with the Ukraine War cranking up to a higher level of intensity with new weapons being used and North Korea now sending 100,000 troops to fight. Interest rates, inflation and currency movements will always affect the gold price, but when you consider global instability, gold is still the best place to be.
We have always thought that American Rare Earth's (ARR) project location in the USA offered some geopolitical strategic advantages but the election of Trump may further shift the landscape in the Company's favour. While enthusiasm for green energy will take a backseat, the Trump administration's focus on 'America First"policies and bolstering domestic industries could prove beneficial for ARR. With a strong emphasis on reducing reliance on foreign supply chains and ensuring critical materials are produced domestically, ARR is well positioned to align with these priorities.
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