I think that's right...
I'm still amused by the number of people who cruise through here thinking SRSR, as a junior, must have fundamentals different than they do... or that SRSR followers don't know mining, and what they should expect to see happening, over time, in the process of moving a major property from an recently overlooked historic find... to production.
One of the reasons I've like SRSR so much, is that it is REALLY well positioned to benefit, and benefit MORE, from all the weird things that ARE going on in the economy now. Of course, there are a lot of people who are confused about that, too... whether inflation or deflation, boom or bust, etc.
It's nice they've got a solid bead on a couple of gold plays... in the Shining Tree subsidiary. I'll disagree with others who think gold is probably peaking just now... while noting that the inflation/deflation scenarios probably aren't what you should watch nearly as much as problems in the balance of trade and the currency issues. The breakdown of the currency regime we have isn't independent of the other economic issues, but, just ask the easy question: What would the price of gold in dollars have to be now, if we accepted that the number of dollars (we wish) and and the amount of gold backing the dollars were both fixed... and you needed to have all the gold backing all the dollars ?
Look at that... and you might note that it's been a while since the dollar had gold backing. There has been a lot of inflation in that time... so, the story behind gold isn't necessarily that there is going to be a lot more inflation in the future... it is that there has already been a whole lot of inflation... and if you reconnect the value of the currency to gold... that long history of inflation will suddenly be "realized"... and the price of gold in dollars will be a proof of it. Of course, looking at it that way... the need for re-monitization means the price of gold isn't actually dependent on the current economic outcome, or on the resulting outcome in inflation or deflation... rather than dependent on what you need to do in backing your currency with something other than the promises of politicians, which people know they can't trust? So, to have people trust in the value of your money... the way they did back when the currency WAS backed by gold and silver... what would the dollar price of an ounce of gold have to be now ?
So, I think we ARE going to have to see a major change in the currencies... to eliminate the global risks inherent in unreliable politicians. WHEN that happens... as it must... gold will not become less pricey in terms denominated in politicians promises. I think the economic reality we have is that the "barbarous relic" we have to deal with... is the persistent fiction that the "modern" politicians we have now AREN'T liars... and you can trust them. It wasn't true in the days of the Roman Republic... and it isn't true now... but the "barbarous relic" of lying politicians telling lies, and lying about it, persists.
So, I think its gold that SRSR has gold...
Given the timelines on which the necessary devolution of the fictions re fiat currencies are likely to proceed, it's even better that they've got NIOBIUM with a REE kicker...
The same things I said about niobium back in 2008/2009 are still true now.
Back then... even WITH the implosion in the global economy that did occur coincident with the market meltdown tied to exposure of the BANK FRAUD in the mortgage markets... I pointed out that the economic drivers re niobium wouldn't be much impacted by that.
And, that is what happened. Steel production dropped like a rock for a while there, as most of the remaining bits of the U.S. economy went up in smoke... and, as that happened... niobium demand GREW...
Now, we're seeing markets recognizing the "risk" of another slow down in the U.S. and Europe... but, as far as niobium demand... that just won't matter.
Global growth isn't as dependent on the U.S. and Europe as it was just a couple years ago... and we've got YEARS of expansion yet to occur in China, Brazil, India... and a lot of the rest of the world outside Europe and industrial north America.
Steel made with niobium is not only better, stronger, and lighter than steel made without it, steel made with niobium is CHEAPER than steel made without it...
So, the dire decline in demand in the steel markets back in 2008/2009... led to INCREASED demand for niobium...
Now, we're not likely to see anything like the disorderly markets (for materials) that we saw back in early 2009...
Steel demand is GROWING now (up like 12% in July, alone)... and, niobium demand is GROWING FASTER than steel demand...
In spite of the ugliness in the markets... with consumer sentiment is as bad as it has been in decades... consumers SPENT more as their opinions about the economy (or, the lying politicians screwing around with it) soured.
That SRSR is addressing those SOLID GROWTH PROSPECTS in niobium markets... with what looks like it will prove to be the largest deposit on the planet is a good thing....
That SRSR also appears to have what looks like it will pencil out to be the LOWEST COST producing niobium resource on the planet ?
Priceless.
That's VERY BASIC type numbers stuff backing this story... the sort to thing that just isn't going to be bothered much by a couple of ripples in the economy caused by stupid politicians.
We'll always need steel... and we'll always want to get MORE for LESS... so, even when we want or think we'll need LESS steel than we thought before... we'll still want MORE niobium than before.
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AI
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