China Halts Rare Mineral Exports To US And Europe, Prices Set To Surge

Discussion in 'Economics' started by Banjo, Oct 19, 2010.

  1. Banjo

    Banjo

  2. Well...rare mineral stocks have already surged the last two days. Look at REE. It was up 25% yesterday and another 20% today.
     
  3. ZeroHedge is a joke, prices have already moved and now they calling for a "surge." Nobody take them serious any more other than gold bugs and amateur traders. Real money has already made this market move, don't get long unless you like to fill profit targets for the big boys.
     
  4. bkveen3

    bkveen3

    Who cares about prices? The main point of this article is that rare earth minerals are a major link in the military supply chain. China produces 97% of the worlds rare earth minerals. This was a strategic move that will play a significant role in world politics for the foreseeable future. It is similar to the United States Oil Embargo on Japan before Pearl Harbor.
     
  5. China is a rich country.
     
  6. joe4422

    joe4422

    The US can also produce rare earths, once the price rises enough.
     
  7. bkveen3

    bkveen3

    I agree, we are capable of producing and refining these elements. Unfortunately, it will take at least a decade if we start now to get production to the point where it is at all significant. Again, we better hope we have significant stock piles if we intend to wage any new wars.
     
  8. Banjo

    Banjo

  9. S2007S

    S2007S

    Rare earths, in case you need a refresher, are a class of 17 elements used in everything from mobile phones, to hybrid car batteries, to flat-screen TVs, to guided missile systems, to wind turbines.

    If it involves cutting-edge modern technology, chances are it requires rare earths.

    So what’s the rub? Right now, China controls 93-97% of the world supply, depending on the source you choose to cite at your next cocktail party.

    Still, the Chinese decision to stop exports to the U.S. marks one of the strangest export bans in recent history.