It appears that graphite is next in line for a commodity boom. The market is driven by increasing demand from traditional applications, new technology uses, and China’s 75% control of supply, its depleting reserves, and efforts to consolidate operations.
Here’s “the company I hate to write about.” It’s Virginia Mines and I don’t like writing about it because, frankly, I’d like the stock price to come down so I can buy more for my clients, and when I’ve finished buying for clients, perhaps, finally, I could buy some for myself.
Large producers of metals (gold, copper, silver, iron ore) are combing Colombia, parts of Africa, Nicaragua, Nevada, Mexico and Canada for purchase candidates. Before year's end such transactions will reach a torrid pace.
The Middle East turmoil has created a selloff in equities and a run to the safe haven assets of precious metals and oil. Even though rare earth prices are soaring, many investors have overlooked a key sector which has pulled back.