Tuesday, September 28, 2010

Rare Earth Investment Potential Is Great... If You Are Patient

Rare earth metals are becoming all the rage in investing circles. It began with James Dines’ recommendation in May 2009.

Europium

Dines has been known to forecast long term bull markets before they begin with surprising accuracy, so it was no surprise that his recommendation to invest in Rare Earth minerals jump started the buzz and put rare earth investing on the map for the general public.

Since that newsletter was published, several rare earth stocks have taken off. Most notably, Molycorp (MCP) has spiked to 28.49 since the IPO in August. Clearly investors are front running the stock since domestic development of rare earths lags that of Chinese competitors. China accounts for 95% of rare earth mineral supply. Here is a chart showing crucial mineral production areas, including rare earth. (more)

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