Here are some interesting articles from reputable publications relating to the importance and scarcity of rare earth elements and technology metals published in 2021:
Suffice to say this is an interesting and accurate article however it’s our opinion that although it appears to indicate that the information and opinions provided are ahead of their time we would not agree. If you read any of our articles here going back 2 years and even longer it will support the idea that this article is behind the times. It is still worth a read and makes the point that China will in the very near future have a near monopoly in Rare Earth Elements AKA Strategic Metals when the truth is China already has a near monopoly in Rare Earths. China is the dominant market leader in Strategic Metals and has been for some time.
Yet again we see political events shaping and influencing the supply chain for Rare Earths. As discerning investors, we are trying to read into the consequences of events that take place. In my opinion most people, even and especially savvy investors would not be yet switched on to the fact that there are many factors and dynamics contributing to the recent increases in prices of Rare Earth Elements, and if one looks closely one can see where we are heading. Take for example Myanmar, how can we as discerning investors profit from the political unrest and military coup taking place right now. Well, if we look closely we will see that in 2020 Myanmar accounted for 39% of global HREE mine production, with China being the only other major producer of HREE mined products at 48% of global supply. This supply chain is vulnerable and subject to disruption and as we always like to say, this is good news for the discerning investor.
Chinese New Year, prices are rising, prices will stabilize (for now) SOLAR powered cars, rare materials needed for 5G fibre optics worldwide. Lots of news this week from our partner TRADIUM GmbH in Frankfurt. We wanted to share here directly the link so you can read it for yourself. Most exciting (at least to me) is the information on SOLAR-powered cars, not electric but solar-powered. Amazing stuff. Did you know there are 2 car manufacturers in Europe now producing solar-powered cars?
Prices for Strategic Metals are increasing , here ‘s why!!
Prices are rising , our investors are smiling. More strategic announcements out of China this week. Quite an increase we have seen lately in prices which is good news for investors however we predict prices increases for the next 3 to 5 years and likely ROI’s of 20% per annum. The latest developments out of China are likely to keep prices rising and we may see further price increases right away because China is now threatening to restrict the export of their refining technologies to countries and or companies they deem a threat to state security concerns. This is great news for investors , bad news for the likes of Lockheed Martin because of recent arms sales to Taiwan which violates China’s core security interests. It looks certain that China will take advantage of and utilize their dominant position in Rare Earths in upcoming trade talks with the US.
Rare Earths are becoming a pawn in US-China Trade tensions and it is easy to see why. Would you like to profit from this? Here’s how. The key factor is that regardless of the outcome of trade tensions between China and the US you (investor) can be the winner. How so? Because regardless of who “wins” you WIN.
If China restricts sales and imports to the US the prices spike and you win, if the US (it will) creates a supply and Rare Earth industry of its own, 1. It will take time 2. It will be vastly more costly than mining in China and prices will rise and you the investor will win.
China to step up protection of rare earth resources
Confirmation has come this week from news sources in China that China will fortify the security of its rare earth resources. This is welcome news for the industry and the wider world in general as many of the 17 Rare Earths are considered critical by the US and EU( and other developing nations) as critical raw materials to their economies. It also spells very good news for investors in Rare Earths as the long-awaited regulation and elimination of rogue operators is sure to create an increase in prices for Rare Earths . This move is also a strong indication that China intends to remain the dominant market leader in Rare Earths. It also strengthens China’s position in Rare Earths if they limit exports and sales of Rare Earths as a bargaining tool in trade tensions with the US. Again, this is very good news for the discerning investor willing to speculate in Rare Earths.
Rare Earths Metal prIEA chief: Net zero by 2050 plan for energy sector is coming
Excellent article here in the Financial Times from the executive director of the IEA (International Energy Association). Quite rightly he states that the climate crisis is an energy crisis and right now the energy that powers our daily lives produces three-quarters of global emissions. Continuing with that logic the demand for the raw materials for sustainable energy such as electric mobility and solar power will continue to rise which is good news for investors who hold these raw materials as physical assets.