What You Need To Know To Cash In On Rare Earth Element Stocks

By on February 16, 2012

Imagine if you would have invested in oil during the 1970’s, when Opec held America hostage to sky-high oil prices.  The exact same thing is happening between the United States and China in what is going to be a global game of chicken over Rare Earth Metals.

Now is the time to take advantage of rare earth element stocks, because there is going to be a major global economic shift over the supply and demand of rare earth metals.  Some countries control the majority of the stock of this rare earth, while other countries are highly dependent upon the use of rare earth metals to use in the production of products that are in high demand.

Products that depend upon rare elements for their production, are cell phones, guidance systems, military applications, lasers, range finding, surveillance, antimissile defense systems, jet engines, satellite power, batteries, and so much more.  This is why the best rare earth stocks will skyrocket.

In 2010, China cut back on the export of rare earth metals by 72%, which caused the price to spike over 500%, and that is just the beginning.  The International Union of Pure and Applied
Chemistry defines rare earth elements as seventeen elements found in the periodic table.

In spite of their name, rare earth metals, with the exception of the radioactive promethium, are relatively plentiful in the Earth’s crust, with cerium being the 25th most abundant element. The majority of these elements were discovered between the late 18th and early 20th centuries.

Rare earth element stocks are relatively new to most investors, as the recent global commodity bull run has highlighted their value and importance to the modern global economy. Even though they are not considered primary energy sources, many rare earth metals are vital components of technologies which have become essential to modern everyday life.

As a result, rare earth mining companies stocks have become a mini-asset class of their own, and hotbed of investor activity. Since their use has not been as widespread or consistent as many other natural resources, rare earth metals are not as easily valued as other more abundant, widely utilized global commodities.

The dependence of certain modern technologies on rare earth metals have pushed their strategic and monetary value sharply upwards over the past several years. This is in no small part affected by the emergence of China as the world’s dominant rare earth metals producer and exporter over the past two decades. The growth in rare earth element stocks value and overall demand is expected to continue steadily, as our reliance on technology continues to expand and grow.

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