Rare Earths become really rare soon…

…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.

 

rudi2020

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6 Responses to Rare Earths become really rare soon…

  1. bravenewloock says:

    Wow! 83-259%??? As rare earths are a finite resource, this might even stay like this for years. However, the Japanese are not really happy with this situation, and have already developed a synthetic alternative: http://www.techeye.net/science/japan-finds-alternative-to-chinas-rare-earth-metal-strangelehold

  2. vivipre says:

    Thank you for the interesting post. It is definitely a topic to keep an eye on as I’m sure under those provoking conditions everyone will try to cut dependence on China and according to bbc news China has only about 30% of rare earth minerals deposits but is responsible for 97% of production! http://www.bbc.co.uk/news/business-11643375

  3. rudi2020 says:

    FYI: China just set export quota for 2011.. and people depending on rare earths are really scared. (FTD 4/11)

  4. I became very curious about the world of rare earths.

    I wanted to know which metals are supposed to be most expensive ones.
    From experience, one would always say platinum plutonium.
    Then I found this yahoo blog and I came to the following exotic metals:
    Lutetium
    Rhodium
    Rhenium

    Although prices aren’t stable on the markets, the prices of these rare earths remain on high levels.

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