Want to buy rare earth metals? On your knees first.

[touchring]

Then, i'll consider whether to sell you some.

http://www.economywatch.com/in-the-n...als-27-09.html

Obama's turn?

[jpatter666]

Re: Want to buy rare earth metals? On your knees first.

Well, the kowtowing will only last for a short amount of time -- China's monopoly on rare earth's stems more from environmental/cost concerns than them *only* being available in China. China would be slitting it's throat as a supplier. Accelerated development of other mines outside of China has already begun. Those plans just got accelerated even more.

Definitely this is a major card in China's hand. Why play it now? Spite? What are they gaining if anything?

[Ghent12]

Re: Want to buy rare earth metals? On your knees first.

China can halt its production to zero if it wants. The world will get along fine within a few years time as all the previously dormant mines come online, like in California. Rare earth mines are very environmentally-unfriendly and costly if done in a way that mitigates the damages; hence a severe contraction in supply from China is not only good for the Chinese environment, but will also be the catalyst for production to start up elsewhere.

[GRG55]

Re: Want to buy rare earth metals? On your knees first.

Then, i'll consider whether to sell you some.

http://www.economywatch.com/in-the-n...als-27-09.html

Obama's turn?

Yet another overly-hysterical and completely idiotic story line from the mainstream media and the trader boyz in NY & London.

This makes a great story to temporarily pump the price of exotic metals and put some jingle in the pockets of the traders at GS and any number of hedge funds [the good ones will play it on first the long and then the short side, once GS suckers their pension fund clients to go long], and plays to the "fear China" cohort [which includes a few iTulipers, unfortunately].

Fact is China is more dependent on trade than the customers that buy its rare earths. If it starts a trade war China will end up suffering the most...by far. That's why these reports are overblown and meaningless.

[oddlots]

Re: Want to buy rare earth metals? On your knees first.

From what I've read the problem is not just to open / re-open new mines. China controls the whole supply chain through to manufacturing. Their rare earth production supports their manufacturing sector, which means that they control not only the resource but its pricing and the pricing of the products that require the resource. It is going to be very hard to compete against that juggernaut.

The whole thing reminds me of the great uranium pump and dump.

[touchring]

Re: Want to buy rare earth metals? On your knees first.

From what I've read the problem is not just to open / re-open new mines. China controls the whole supply chain through to manufacturing. Their rare earth production supports their manufacturing sector, which means that they control not only the resource but its pricing and the pricing of the products that require the resource. It is going to be very hard to compete against that juggernaut.

The whole thing reminds me of the great uranium pump and dump.

A year ago, I was checking on how to invest in rare earth metals, I didn't managed to find anything conclusive. Perhaps I should have done more research. lol

[Ghent12]

Re: Want to buy rare earth metals? On your knees first.

From what I've read the problem is not just to open / re-open new mines. China controls the whole supply chain through to manufacturing. Their rare earth production supports their manufacturing sector, which means that they control not only the resource but its pricing and the pricing of the products that require the resource. It is going to be very hard to compete against that juggernaut.

The whole thing reminds me of the great uranium pump and dump.

I see what you're saying. In the end though I don't see the result of this being anything more than lower global production of products relying on rare earth materials.

Are their finished goods that use rare earth materials on the low-end or the high-end of manufacturing? I suspect that most are low-end, as is most of their manufacturing. If so, then a squeeze on supply would increase the price of those products to create an unwanted product from everyone's standpoint--a costly low-end finished product.

For their production based on rare earth materials that is on the higher end, they may just price those products out of the market altogether when alternatives are readily available--choosing diesel or a gasoline vehicle over a hybrid, for instance. That is until the rest of the world gets in on rare earth mining.

[touchring]

Re: Want to buy rare earth metals? On your knees first.

I see what you're saying. In the end though I don't see the result of this being anything more than lower global production of products relying on rare earth materials.

Are their finished goods that use rare earth materials on the low-end or the high-end of manufacturing? I suspect that most are low-end, as is most of their manufacturing. If so, then a squeeze on supply would increase the price of those products to create an unwanted product from everyone's standpoint--a costly low-end finished product.

For their production based on rare earth materials that is on the higher end, they may just price those products out of the market altogether when alternatives are readily available--choosing diesel or a gasoline vehicle over a hybrid, for instance. That is until the rest of the world gets in on rare earth mining.

here's a January article. from the list,it would appear that they are used in high tech weapon manufacturing. ;)

Dysprosium - Makes electric motor magnets 90% lighter

Terbium - Makes electric lights 80% more efficient

Neodymium - Used in motor magnets

Lanthanum - Used for hydrogen storage

Praseodymium - Used in lasers and ceramic materials

Gadolinium - Used to manufacture computer memory

Erbium - Used in the manufacture of vanadium steel

Ytterbium - Used to make infrared lasers

http://www.naturalnews.com/028028_ra...ts_mining.html

[oddlots]

Re: Want to buy rare earth metals? On your knees first.

For what its worth I have found this guy's commentary on Rare Earths sensible:

http://www.mercenarygeologist.com/

[oddlots]

Re: Want to buy rare earth metals? On your knees first.

Here's a good example of Mickey Fulp's analysis that just came out today I think:

http://www.raremetalblog.com/2010/10...sts-view-.html

[don]

Re: Want to buy rare earth metals? On your knees first.

Japan Recycles Minerals From Used Electronics


Utaro Sekiya, manager of the Dowa Holdings recycling plant in Kosaka, Japan, inspects used motherboards, which will be melted for their minerals.

http://www.nytimes.com/2010/10/05/bu...html?ref=world