I Was a Rare Earths Day Trader

[Modbert]

I Was a Rare Earths Day Trader - Inside the Rare Earths Bubble - By Jason Miklian | Foreign Policy

So it goes with rare-earth elements, a group of materials used in the manufacture of various high-tech applications and the object of the latest subterranean fad. Since a border dispute between China and Japan pushed rare earths into the headlines last fall, prices for some of the elements have shot up to an incredible 1,000 percent of what they were just three years ago -- and as in Twain's day, there is no shortage of smooth-talking suits who will tell investors this is only the beginning. I should know: For a few months, I was one of the suckers.

Before we get to that, a brief geology lesson: "Rare earths" is the catchall phrase for 17 elements mostly near the bottom end of the periodic table that are essential for cutting-edge optical and magnetic applications in hybrid cars, wind turbines, iPads, mobile phones, and smart missiles, among other things. What rare earths aren't, however, is rare -- in years past, they were mined everywhere from Florida to Indonesia -- or terribly valuable. In 2009, global sales of all raw rare earths combined came to less than $2 billion -- half the market for palladium alone, and 1 percent of the market for gold. These aren't exactly precious gems: Most rare earths are priced by the ton, not the ounce.

China started cornering the rare-earths market in the 1990s not because it was the only one with the stuff in the ground, but because everyone else gave up. Mining rare earths requires some of the most invasive and ecologically destructive open-pit extraction practices in the world, and China's lack of environmental regulations and its cheap labor meant that it could easily undercut even the biggest suppliers. The one active mine in the United States, operated by the company Molycorp in Mountain Pass, California, halted production in 1998 after a radioactive-waste spill and was shuttered four years later.

Full Article after the jump. A very interesting article that I recommend to anyone who is interested in knowing more about the Rare Earth Metal Saga or Rare Earth Metal market.

 

[loosecannon]

Nothing new.

Neither rare or expensive.

YET!

If we decided to base a whole new platform of global vehicle propulsion upon them, rare earth's would become both rare and expensive. But the critical question is how rare and how expensive.

Nobody knows the answer. Yet we proceed ahead with the electric auto and "renewable energy" as if that question wasn't as important as the Hubbert's peak curve.

The bottom line is that all earth elements of strategic importance are becoming rare and expensive as the swelling population and increased wealth in developing nations sends demand skyward. Unless we can develop an energy platform based on iron, silicon, hydrogen, CO2, magnesium, sulfur, neon, helium, or nitrogen oxides we are still milking a dying cow.

 

[william the wie]

Nothing new.

Neither rare or expensive.

YET!

If we decided to base a whole new platform of global vehicle propulsion upon them, rare earth's would become both rare and expensive. But the critical question is how rare and how expensive.

Nobody knows the answer. Yet we proceed ahead with the electric auto and "renewable energy" as if that question wasn't as important as the Hubbert's peak curve.

The bottom line is that all earth elements of strategic importance are becoming rare and expensive as the swelling population and increased wealth in developing nations sends demand skyward. Unless we can develop an energy platform based on iron, silicon, hydrogen, CO2, magnesium, sulfur, neon, helium, or nitrogen oxides we are still milking a dying cow.

It depends on bio-tech, nano-tech and advances in use of extra-terrestrial resources. By the way the Biochemistry and mechanics thread deals with the current state of micro-organism created fuels vaporware.

 

[hjmick]

 

[sjay]

hey william wie where is this biochemistry and mechanics tread?

 

[william the wie]

hey william wie where is this biochemistry and mechanics tread?

Here in economics probably on page 2 or 3 but it may still be near the bottom of page 1. Just google fuel from micro-organisms if you don't find it. The press releases make it sound like the Atari/Commodore stage will hit in early 2012 and my guess is that by 2020 $0.2/gal gas in real terms will hit in 2021-3 for the start of the IBM PC stage.

 

[Toro]

I would suggest one not trade rare earth metals and their stocks unless they really, really know what they are doing. I imagine a lot of money will be lost by people who have no idea what they are doing.

 

[Modbert]

I would suggest one not trade rare earth metals and their stocks unless they really, really know what they are doing. I imagine a lot of money will be lost by people who have no idea what they are doing.

As what happened to the person in the story. The author of the story lost half his life-savings.

 

[Trajan]

are Alpacas rare earth beasties? cause theres a fuc*ing Alpaca bubble brewing....