March 13, 2025
This is a write up a recent Podcast Jeff Christian gave on the Norther Miner Podcast. Learn more about The Northern Miner by going to www.northernminer.com
Trump’s Pentagon Metals Plan and Congo’s Cobalt Ban Disrupt Global Markets
The global gold and silver markets, along with key base metals, are facing unprecedented shifts due to political decisions that could redefine international supply chains. Former President Donald Trump’s proposal to establish mineral refining facilities on Pentagon bases is a direct challenge to China’s dominance in the critical minerals sector. Meanwhile, the Democratic Republic of Congo (DRC) has imposed a cobalt export ban, shaking up the precious metal markets and sparking concerns over global shortages. These developments underscore the importance of commodity research and metal market analysis as investors and governments navigate the rapidly changing landscape.
Trump’s Move to Strengthen U.S. Critical Mineral Supply Chains
As part of a broader effort to reduce U.S. reliance on China for critical metals, Trump has proposed building mineral refining plants on U.S. military bases. This initiative aims to boost domestic production and secure supply chains for commodities and precious metals used in national security, including the manufacturing of fighter jets, submarines, and advanced military technology. The proposal also includes appointing a Critical Minerals Czar to oversee commodity management services and coordinate federal efforts in mineral procurement.
This move is seen as a response to China’s increasing grip on base metals and precious metal markets. Over the past decade, China has solidified its control over mineral refining, posing a significant risk to Western supply chains. In response, the gold market outlook in the U.S. is shifting, with renewed interest in securing domestic production and refining capacity.
Congo’s Cobalt Ban: Disrupting the Precious and Base Metals Supply
At the same time, the base metal price for cobalt has surged following the DRC’s four-month ban on cobalt exports. The DRC supplies over 70% of the world’s cobalt, a crucial component in electric vehicle (EV) batteries, aerospace technologies, and military applications. The move has sent shockwaves through metal market analysis circles, as China, the dominant player in global cobalt processing, is both stockpiling and manipulating supply flows.
The DRC’s export restrictions are seen as a direct response to China’s influence over its mineral sector. The country’s government has grown increasingly frustrated with Chinese mining companies flooding the market with low-cost cobalt while simultaneously stockpiling large reserves. The ban aims to stabilize prices and prevent further exploitation of Congolese resources. However, this decision has further heightened geopolitical tensions between China, the U.S., and Europe, as Western nations scramble to secure alternative supplies.
Implications for the Gold and Silver Markets
These disruptions in the commodity research landscape are not limited to base metals. The gold market outlook has also been affected by increased demand from central banks and geopolitical uncertainty. Notably, Poland’s central bank has been aggressively purchasing gold, acquiring nearly 3 million ounces in 2024. Much of this gold has been transferred from London to the U.S., possibly to avoid future trade tariffs and geopolitical risks.
Precious metal experts have noted that the movement of gold from Europe to the U.S. reflects shifting economic power dynamics. With global uncertainty rising, gold continues to serve as a safe-haven asset, leading to sustained interest in the gold and silver markets.
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