Our prosperity is based on false prices—but the reckoning will come!
What do antibiotics have in common with production-critical metals? They are far too cheap. Geopolitical and ecological crises repeatedly raise the question of what our most essential goods would cost if the producing companies were based in Germany. Prices for goods from countries without labor and environmental protections do not reflect the true production costs. Domestic production would come at a price, but sooner or later there is no way around it—even if it means a reduction in our prosperity.
Cost-effective production of antibiotics in this country hardly possible
Estimates suggest that 80 to 90 percent of all antibiotics are manufactured in China and India. Their production heavily pollutes wastewater and thus the surrounding water bodies. As long as Germany is unwilling to bear the risks and costs of domestic production, it remains dependent on antibiotic active ingredients from outside the EU. Corporations are therefore calling for a public debate on the prices of such antibiotics, which in some cases are only a few cents per daily dose. Cost-effective production is not possible in this country under these conditions, according to the manufacturer association Pro Generika. If Germany wants to become independent from China and India, the prices for these medications must be based on their “true costs.” Domestic production is urgently needed, as there are increasing supply shortages of medications. For example, the Federal Ministry of Health announced a supply shortage of antibiotic-containing syrups for children in April of last year.
Rare earths cheaper than ever despite dependency
The most distorted prices are those of rare earths, which are classified as particularly critical in terms of supply security. As a reminder: while key industries such as transportation, digitalization, healthcare, and defense urgently need these commodities, and the energy transition depends on them, 60% of mined rare earths come from China. Furthermore, the People’s Republic accounts for 87% of processing and 94% of further processing into high-performance magnets. To become independent from China, Western countries are therefore attempting to build their own value chain. However, China appears to have anticipated this move. Through deliberate overproduction and politically engineered low prices, which have now reached a new low, the Middle Kingdom ensures that Western refineries and mining projects are not economically viable. The monopoly therefore remains with China for the time being.
Invest now and protect against loss of prosperity!
Conclusion: This cannot continue. Prices will rise and our prosperity will decline. However, there is also good news: investors can currently purchase rare earths at particularly favorable prices.