The US Buys Rare Earths—Is Gold Or Silver Next?

Not likely, but not impossible. My quick take on the nationalization of MP Materials.

On Thursday, shares of MP Materials surged over 50% after news broke that the U.S. Department of Defense would become the company’s largest shareholder. Through a $400 million purchase of special stock, the Pentagon has taken a 15% stake in the rare earth miner, securing long-term access to critical materials used in everything from electric vehicles to fighter jets.

This deal also includes a ten-year commitment from the government to purchase all the magnets produced at MP’s upcoming “10X Facility,” along with a minimum price guarantee for key inputs.

Backed by an additional $1 billion in private financing from JPMorgan and Goldman Sachs, the partnership is a strong signal that America is looking to reduce its dependence on foreign-controlled supply chains—especially those dominated by China.

While this move currently applies only to rare earth elements, it opens the door to broader speculation about nationalizing critical elements, metals, chemicals and the likes—something I’ve discussed repeatedly over the years on Palisades Gold Radio.