Best rare earth stocks

Best rare earth stocks

You know supply and demand plays a pivotal role when trading the markets, and knowing which are the best rare earth stocks. There are rumors that one of the world’s biggest rare earth producers may be losing its license, and ability to export rare earths out of Inner Mongolia, because of environmental concerns.  You may have never heard of Baotou Steel, which is the Inner Mongolian company that produces about half of the rare earth world’s supply, and is the largest producer and exporter out of China.

Best rare earth stocks

Needless to say, if Baotou Steel loses their license or ability to export, the supply will go down, and raise rare earth element stocks.  There is nothing official, just speculation so far, however, if the Baotou Steel experiences any export issues there will be a substantial impact upon rare earth supplies.  You may have never heard of these rare earths used to produce these products, but you depend upon them every day, which include TV’s, tack computers, batteries, energy reducing light bulbs, electric motors, cell phones, and medical devices, which all use rare earths for manufacturing.

Rare earth metals demand is expected to outstrip the supply that is available by 30-50,000 tons in 2012, and increase the value of rare earth mining companies stocks.  A shortage of these rare earth metals could result in a decline in production of products and devices, which include military equipment, TV’s, mobile-phones, and wind turbines that all have components made with rare earth metals.

Finding, producing and exporting rare earth metals is a challenging task, because the demand is so strong and will only increase, because of all the new high demand technologies that are emerging.  Over the past decade the increase for rare earth metals has gone up by 50%, and continues to rise.

Rare earth prices have also been distorted, because of smuggling activity from China, some estimate as much as 20,000 tons a year.  There are  new invoicing systems plus export quota overhangs which discriminate against small producers, all this has resulted in dumping rare earth element stocks towards the end of 2011.  Prices could rise strongly for rare earths, when the dust clears from the rare earth stock dump.

So what does this mean for you, it is time to begin investing in rare earths stock, because of the critical demand for rare earth.  The rare earth elements we have been talking about, include terbium, neodymium, dysprosium, europium, and yttrium.

Best rare earth stocks

Absolute Wealth advises to examine Molycorp stock as one of the best rare earth stocks of 2012, and also warns to hang on, because you could be in for a wild ride, but one that is worth it.

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