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Jason Burack
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Investor, Entrepreneur, Financial Historian, Austrian School Economist, Investment Analyst, and Contrarian. Co-founded the investor education, financial education and consulting company, Wall St for Main St, LLC in 2009. I've taught beginners how to invest and also consulted for high net worth... More
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Jason Burack
  • Rarer than Gold?? 2 comments
    Jan 24, 2011 2:46 AM | about stocks: MCP, LYSCF, GDLNF, STZYF, UURAF
    by Kevin Kerr and Jason Burack

    No, Rare Earth metals are not rarer than Gold and no we are not going to try and waste your valuable time trying to convince you of that.
     
    However, Rare Earths or REEs as they are known are far more vital to a modern society than Gold!
     
    In fact, without Rare Earths, there would be no modern society as we know it.
     
    Were it not for innovations in Rare Earths, we would not have smart phones, hybrid vehicles, flat screen color TVs, thin film solar panels, windmills and advanced military technology like Predator drones, Smart bombs, laser targeting systems or night vision goggles.
     
    And we are just naming a few of the major ones with that list. The fact is Rare Earths are THE high tech, clean tech, aerospace and military/defense technology metals.
     
    Recent REE innovations just announced include a LED light made of REEs that emits light not harmful to humans but deadly to bacteria. This new type of LED light kills 60% more bacteria than regular lights when it was tested over a 2 yr span in hospitals and these bulbs will probably end up replacing every single light bulb in every hospital in the world!
     
     
    With REE technology, the bullet can be accurately programmed to explode at a specific distance!
     
    None of these technologies would be possible without REEs.
     
     
    The Rare Earths are a relatively new frontier for most investors, even hardened commodities traders and metals enthusiasts are just learning about all of the incredible opportunities.
     
    The explosive global market for rare earths has grown at an annual rate of about 8%-11% over the last decade, according to the World Trade Organization, but this pace has spiked in the past 12-18 months or so. One of the main reasons is because consumers around the globe, particularly in China and the rest of emerging Asia, are buying many of the items we spoke of earlier.
     
    China has been quietly implementing quotas on REE’s and cutting exports of rare earths by 5%-10% each year, pushing up prices.   In 2009 an index holding shares of 12 rare-earth miners rose by more than 600%. Countries such as Japan, which rely heavily on rare-earth imports to produce electronics, have been the hardest hit. This trend is likely to continue for the foreseeable future.
     
    Japan by far is the country most at risk to such a sharp drop in supplies, and their poor relationship with China doesn’t help either. So Japan and Mongolia have now agreed to explore Mongolian rare-earth reserves together.  Japan has been in deal making mode lately cutting 2 monster deals for about $500 million; one with REE giant Molycorp and also powerhouse Lynas, all in an effort to secure abundant REE supplies outside of China.
     
    The grim reality is that building a new rare-earth supply chain outside of China will probably take at least a decade, maybe even much longer than that. The reasons are simple. The infrastructure for rare-earths exploration and mining takes years to build – and likely between seven and 15 years to get going – not to mention billions of dollars. So prices should remain high for some time, along with demand for miners who can get the metals out of the ground.  
     
    Investing in Rare Earths make a great compliment to one’s precious metals holdings in a diversified commodities portfolio, as Rare Earths are starting to move up on their own on news in a non-correlated way to other commodities like precious metals.
     
     
    In our easy to understand comprehensive 29 page “Dragon Metals” report we examine all of the vital facets of REE investing, for both the short and long term, as well as the risks. A concise detailed Pro & Con list is provided for each suggested investment vehicle and stock. Get your valuable copy of this limited time report right now, just go here. ACT NOW!
     
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Comments (2)
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  • shessel
    , contributor
    Comments (2) | Send Message
     
    Hi, I love to invest in GDLNF:RK Greenland REE. Can you please tell us all how we can do this in the U.S.A.?
    Thanks, Steve shessel@uiuc.edu
    11 Apr 2011, 08:43 PM Reply Like
  • shessel
    , contributor
    Comments (2) | Send Message
     
    Hi! I'd love to invest in GGG.AX, but can you please tell us how we can do this in the U.S.A.? Is this stock listed on a American Exchange?
    Steve shessel@uiuc.edu
    11 Apr 2011, 08:47 PM Reply Like
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