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Old 14th June 2011, 03:41 AM   #1
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Default Driver prices to increase dramatically?

Is this going to be the end of diyaudio.

Metal-Pages - Neodymium metal prices, news and information
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Old 14th June 2011, 04:12 AM   #2
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Driver prices have already been increasing, especially those with Neo. Ever since China effectively got a monopoly on Neo, price increases were in the cards.

But all commodities are increasing... some just not as fast as neo.

Rising prices should drive an increase in diy... the increase we as diyers see in drivers will be multiplied by 5 x or more in commercail speakers.

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Old 14th June 2011, 04:21 AM   #3
FrankWW is offline FrankWW  Canada
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No. Not the end of DIY. Rare earths are not rare, they're only thinly distributed over most of the earth.

Rising prices means there will be deposits exploited elsewhere than China. The Chinese are making an error in trying to control the market.

Also, there will be materials to replace neodymium if the price remains high
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Old 14th June 2011, 04:26 AM   #4
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Rising prices means there will be deposits exploited elsewhere than China.
Takes a fair bit of time to develop deposits. Ten years is the figure I've seen. So in the short to medium term prices will rise.
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Old 14th June 2011, 04:38 AM   #5
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IMO it's hard to escape the supply-demand economics, but a lot of audiophilia is valued at a what-the-market-will-bear price and it isn't so easy to predict that.
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Old 14th June 2011, 04:52 AM   #6
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The price of plain 'ol metal has also been going up, so I don't see much of anything holding steady or getting cheaper. Natural disasters, which seem to be on the rise, cause an increase in the price of building materials- wood, mdf and everything else you can think of. DIY audio will continue but all hobbies will become more of a luxury if the economy worsens.
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Old 14th June 2011, 04:56 AM   #7
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Fully half of the increases in REM's can be laid at the feet of Mr. Bernanke's QE2 disaster. The price of various rare earth metals is determined by futures contracts, which are volatile and highly manipulated. The increases of the past 9 months come from hedge fund and Wall St. bank manipulation (read JP Morgan, Goldman Sucks, etc) If the stock market continues to correct (which it should), look for margin calls to come into play and REM's to drop 15% at a bare minimum.
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Old 14th June 2011, 04:57 AM   #8
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DIY audio will continue but all hobbies will become more of a luxury if the economy worsens.
Ironically rather the opposite - all other activities barring hobbies will be the new luxury. Be prepared for lots more hobby time guys as 'real' jobs ain't a comin' back.
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Old 14th June 2011, 05:07 AM   #9
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Quote:
Originally Posted by abraxalito View Post
Ironically rather the opposite - all other activities barring hobbies will be the new luxury. Be prepared for lots more hobby time guys as 'real' jobs ain't a comin' back.
There might be something to this, I see some parallels in my career in recent years..
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Old 14th June 2011, 05:34 AM   #10
FrankWW is offline FrankWW  Canada
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Originally Posted by abraxalito View Post
Takes a fair bit of time to develop deposits. Ten years is the figure I've seen. So in the short to medium term prices will rise.
The Mountain Pass mine in California was shut down but is reopening and Molycorp figures they'll be producing by 2012.

They're being optimistic, I expect, but it certainly won't take ten years. Other companies are looking at exploiting some enormous tailings left from mining and refining operations of more common minerals.

My guess, based on past history, is that if materials become too costly, replacements are found. This seems very likely in the case of materials used in every day things like cars and computers.

Mountain Pass rare earth mine - Wikipedia, the free encyclopedia
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