…your chance to make a fair amount of money (maybe) out of China’s restrictive policy.
‘’No smartphone, no DVD-player, no car can be produced without rare earths’’. What Bernd Mikosch states in his article “Erdung verloren” (lost ground) in the 26/10/2010 print edition of the Financial Times Deutschland should make everybody listen up instantly because Mr Mikosch furthermore explains that China, planets biggest explorerer and digger for rare earths is reducing exports, to Japan they allegedly have declined to 0% already.
rare earths used in cars by thetruthaboutcars.com (2009)
So: We were not financially interested if I wouldn’t advance by telling you how to make money out of it.
Because of the increasingly instable earth supply from China, investors are looking for alternatives. Those are for example in Australia, US or Canada. Listed exploration firms have performed awesome bull movement in the early past so the FTD recommends keeping an eye on stocks by Lynas (AU 000 000LYC 6) or Molycorp Minerals (US 608 753109 0) or Avalon Rare Metals (CA 053 470100 2). Their 1-year performance varies between 83 and 259%.
If those exploration firms don’t develop their capabilities in rare earths we may find ourself in a world full of stuff made in China. I’m talking mobile phones, cars, everything. This view is of course very drastic, BUT [sarcasm mode on] as long as we can make money out of it – who cares [sarcasm mode off]. This topic will stay in our focus for the future and as long as nobody comes up with an alternative.