Email of the day (2)
Comment of the Day

November 07 2011

Commentary by David Fuller

Email of the day (2)

More on rare earths metals:
"How might one invest in rare metals?"

David Fuller's view I would only consider doing this through the companies which mine them. They are highly speculative, as I mentioned last week, not least because few of these companies make any money at present so it will certainly be a few years before we see reliable earnings streams, let alone dividends. Nevertheless, they are in an interesting, strategic sector regarded as critically important by high-tech companies and the military. This situation has arisen following last year's significant cutbacks in the supply of rare earths metals exported by China, which has a temporary stranglehold on the sector.

Eoin produced this spreadsheet of rare earths miners which you can find in the Chart Library. For the record, I personally have small long positions in three of them: Lynas, Avalon and Quest, and I also commented on Ucore last Friday.

Note: for more on this subject, please use the 'Search' facility shown upper left, fourth item down, and you will find 60 earlier items on rare earths.

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