Seeking Alpha

"Pretty scary" is how one industry insider describes the cost of rare earth metals in China...

"Pretty scary" is how one industry insider describes the cost of rare earth metals in China after their YTD doubling in price. "(The) buyers are not our real downstream clients, but speculators who are hoarding the materials for profiteering purpose."
Comments (3)
  • Buy MCP.
    30 Mar 2011, 03:07 PM Reply Like
  • Maybe the speculators will become sellers later on alleviating the problem.
    30 Mar 2011, 03:34 PM Reply Like
  • news.xinhuanet.com/eng...

     

    "Speculators bought all rare materials available on the market, regardless of their prices," said an executive of a large rare earth company in the city of Ganzhou, east China's Jiangxi Province.

     

    This article is a huge red flag. Speculative mania always ends one way... in a crash.

     

    There is no real demand is behind this mania. Stocks that have run up on the manic, artificial rise in prices will crash.

     

    Please note. The penalty for profiteering in China is death. One should expect abrupt price corrections at any time.
    30 Mar 2011, 06:13 PM Reply Like
DJIA (DIA) S&P 500 (SPY)