“Rare Earth Element Stocks Are Taking The Spotlight” Is Today’s Topic In The Absolute Wealth Newsletter

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Today the Absolute Wealth newsletter published the “Rare Earth Element Stocks Are Taking The Spotlight” article, explaining why rare earth minerals are beginning to get noticed by investors.

Rare Earth Riches AbsoluteWealth.com

Rare Earth Riches AbsoluteWealth.com

China sharply cut exports by 72% causing a global price spike of rare earth stocks over 500%.

“Rare Earth Element Stocks Are Taking The Spotlight” is discussed today in the Absolute Wealth newsletter, explaining that twenty years ago the rare earth element market had a total output of 60,000 metric tons. China’s production was 16,000 metric tons at the time, the newsletter reveals, making all the other countries producers of approximately 44,000 metric tons.

Ten years ago the newsletter explains, with new technologies the rare earth elements market exploded, because the demands went through the roof causing rare earth element stocks to begin to rise. The newsletter says this caused China’s exploration and production to explode. From 1990 to 2000 China’s production rose by 450%, reveals the newsletter, with their production increasing to 73,000 tons. During the same period, the newsletter explains production from other countries plummeted by 60%, which turned the tables on the rare earth minerals market.

As of 2009 the newsletter explains, global production of rare earth minerals stood at 132,000 metric tons. Since 2000 the newsletter adds, world and Chinese production have continued to increase. By 2009, world production increased 45%, with Chinese production increasing 77%, to 129,000 metric tons reveals the newsletter. Production from other countries decreased to about 3,000 metric tons in 2009 the newsletter adds.

In other words the newsletter explains, over the span of twenty years, China has gone from being the dominant player to the only game in town. In the second half of 2010 the newsletter adds, China sharply cut exports by 72% causing a global price spike of rare earth stocks over 500%. Recently the newsletter explains China has announced plans of more export cuts, with the possibility of cutting all rare earth element exports completely.

With one such dominant player in the rare earth minerals sector, the newsletter explains, production capacity is near impossible to predict on a forward moving basis. One thing is certain the newsletter says, if global demand continues to increase at the current rate, by 2015 there will be a significant global gap between supply and demand equaling about 40,000 tons. In addition the newsletter explains, if China continues to reduce export quotas, and bans the export of a number of rare earths, this production gap could be even larger.

The newsletter explains there are new technologies that Canada is using to unlock old rare earth element reserves, that they have not been able to use until recently. The U.S. has been working on opening a mine that they closed previously, the newsletter reports, so the U.S. would not be left without the products that Americans are so addicted to. With these new sources for rare earth minerals coming on the market, rare earth stocks U.S. will begin to rise the newsletter explains, so investing in rare earths could move into center stage. Keep an eye on rare earth element stocks for the future.

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Paul Norwine
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