Discussion in 'Economics' started by Banjo, Oct 19, 2010.
Well...rare mineral stocks have already surged the last two days. Look at REE. It was up 25% yesterday and another 20% today.
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.
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.
China is a rich country.
The US can also produce rare earths, once the price rises enough.
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.
China Pledges Rare-Earth Supply as Users Abroad Say Prices Soar
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 whatâs 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.
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