Investing in Rare Earth Elements

derryb

Most of us here are fully aware of today's best investments in PMs. Many of us are not making plans for tomorrow's best investment, Rare Earth Minerals, also known as rare earth elements (REEs).

This little publicized event in the current US/China trade war should be an eyeopener for all:

China embargos REE exports to US

Note this important quote from the article: “If you could figure out a viable way to invest in rare earths,” Jim Rogers concludes, “you will probably make a fortune.” This is the same Jim Rogers that showed us success with our current PM investments.

There is currently not a lot of stateside investment opportunity in REEs but now is the time to begin research into future investment opportunities in this potentially money making area. Now is the time to be doing some very serious homework.

TWQG

I just saw an interview with Molycorp's CEO recently.
The opportunity may already be baked into the share price though.
Some good four-wheelin out by the mountain pass mine.

derryb

<< <i>I just saw an interview with Molycorp's CEO recently.
The opportunity may already be baked into the share price though.
Some good four-wheelin out by the mountain pass mine. >>



MCP is about the only stateside play in REEs, and yes opportunity is baked into its share price. However, as more players look for opportunity in this area , especially with China's embargo, share prices could explode on speculation. I'm in.

Higashiyama

One thing to keep in mind - you may be able to do well by market timing this shortage, but this is not a long term play. China has a near monopoly on production, but not on in ground supply. There are plenty of rare earth minerals around the world, they are just environmentally hard to mine. If China squeezes too hard, both alternate sources and alternate technologies will be developed.

The rare earth squeeze actually could help precious metals, as it will increase inflationary pressures.