I'm very grateful to IRM for their honest and transparent update. IRM are more like a co-operative than a manufacturer/retailer and we are more like members of that co-operative than consumers. It was a brave move by IRM to set out the facts. I couldn't see Hornby doing such a thing. It looks like it worked as the community's support has become evermore galvanised behind IRM.
However, I don't think this project is out of the woods yet. At present we are facing into a very serious diminution of the Western currencies. Today we are paying 26% more for petrol and diesel than we were three years ago, 18% more for clothing and 17% more for food than three years ago. This is a clear indication that the Euro is losing purchasing power. In addition, precious metals are increasing in value relative to the currency they are purchased in. In most cases precious metals have hit all time highs. Again this is an indication of Western currencies losing purchasing power.
The Chinese have been accumulating gold for the last 15 years. Some estimate that they have in the region of 17,000 metric tons of gold. To put this in perspective, officially the largest deposit of gold in the world is in the US, which is just 8,320 metric tons. It's not for nothing that Germany repatriated all of its gold from the US with the last shipment arriving in March 2020; nor it is any surprise that the Bundesbank, for the first time in it's history did not buy anymore US Dollars to top up its foreign exchange reserves. In short, countries around the world are getting rid of the dollar, the world's reserve currency since 1945.
Two years ago, the Chinese government changed the law allowing Chinese citizens to buy gold. Many Chinese citizens have opened gold accounts. It might be worth exploring the possibility if the Chinese factory would accept payment in gold rather than GBP or Euro. This might safeguard the project from the worst vagaries of a massive exchange difference which I fear is on the horizon.
Finally, paying in gold as a medium of exchange might ensure the project not only survives but may be quite profitable. In addition, accumulating the gold now would make the project much cheaper in the long term particularly if we are looking down the barrel of a late 2025 delivery. These savings could be passed on, making the ICR project a lot more affordable.