Here are some interesting external articles from reputable publications relating to the importance and scarcity of rare earth elements and technology metals published in 2020:
Rare Earths Metal prices SKYROCKETING
It’s already begun, prices are “skyrocketing” according to this article in Forbes less than a week ago. It is a well written, well researched article. I believe the article also adds some additional perspective and additional dimensions to investing in Rare Earths right now. Usually when the mainstream media pick up on something that they want to get out to the wider world it can be quite flat and displays quite prominently that the writer is “cheerleading” and just ready this the evening before, not so with this well-reviewed, well authored.
The only business that”s omitted is the absolute fact that you can as a private investor purchase Rare Earths Metals as geographic and currency diversification to your portfolio, that you can accept full physical ownership and store your metals in a bank-level secure vault in Frankfurt, Germany. It’s understandable though that Forbes may not yet be aware that you can do this as although we have been offering this opportunity in Germany for nigh on 10 years, it is only since earlier this year we have been marketing the opportunity in a very limited fashion to North America. Here is the article:
If the US wants to compete with China or create a new reality by creating a US-led domestic production and supply chain of rare earths then throwing $10 million here or $15 million there is nothing more than a drop in the ocean. It feels to me that someone is just playing politics here as it is going to take a billion dollars to create a domestic industry and it is going to take a generation to do it.
Demand for critical metals is “skyrocketing” and will continue to skyrocket for the next 5 years. There has never been a better time to invest in Rare Earth Metals. We cannot stress this enough, there has never been a better time to invest in Rare Earth Metals. China has a near-monopoly on the world’s production and supply, the electric mobility market industry is about to explode, demand is skyrocketing and supply is scarce.
The writing has been on the wall for some time now however finally the US and the EU are taking action in regard to China’s monopoly on Rare Earth Metals. It is becoming more and more apparent that the US and Europe will create their own Rare Earths Metal industries. This bodes very well for anyone who purchases and stores Rare Earth Metals now as costs are going to go up as the US/EU will mine and refine sustainably. In addition to that, it is going to take time ( 25 years perhaps) to get there and serious investment from the public and private sector.
The European updated the list of “critical metals” last week, this is the first updated publication since 2017 however the concerns and increasing scarcity are finally setting off alarm bells in the EU and the US. So much so that the US administration is taking action to free their dependence on China for rare earths and strategic metals with intentions to create a supply and industry on home soil. This is easier said than done as it has taken China a generation to stockpile almost 40% of the worlds rare earths and it will cost upwards of $1 billion to get a mine and running and that would still not satisfy more than 17% of demand alone in the US.
Here are the links to the published list from the EU https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0474 and the white paper details crucial aspects of the blueprint for securing this continuing scarcity of these rare earth metals. https://ec.europa.eu/docsroom/documents/42881
In the past year alone China has gone from producing 70% to 80% of the world’s rare earths. For those of us watching China’s takeover of the production and supply of rare earths this is no surprise. China thinks generationally and a generation ago China decided they would be the dominant market leader in rare earths and surprise surprise China is now producing and supplying more than 80% of the worlds rare earths and has been stockpiling strategic and rare earths for a generation. This does not bode well for many reasons and the article featured here demonstrates how difficult and time consuming it will be for the US to create an industry industry. In the meantime, China has a near monopoly and strengthens its dominant position in rare earths. The wise move is to stockpile now while we can.
Not everyone’s asleep at the wheel and if you seek you shall find. The key take away and insight here is that the rare earth metals market was estimated at $13.2 billion in 2019 and is expected to hit nearly $19.8 billion by 2026 registering a CAGR of 10.8% from 2020 to 2026. Read this article and weep (with joy) if you are or you intend to be an investor in rare earths.
Things are certainly heating up (and so they should be ) in the race to wean America’s reliance and China’s quasi-monopoly on the supply of rare earths, it’s not going to be an overnight matter and likely to take at least a generation however the US government is outlining a plan to fund domestic rare earth projects in an attempt to reduce its reliance on China, the global leader of the specialized sector.