Willem Middelkoop and Terence van der Hout of the Netherlands-based Commodity Discovery Fund believe that when the world's reserve currency is reset away from the U.S. dollar in the next decade, gold prices will rise and mining equities will follow.
The research analyst with The Gold&Discovery Fund in the Netherlands and editor of Strategy Metals Bulletin says takeovers are his sweet spot and that while gold juniors are very quick to get from discovery to takeover, most rare earth explorers are still early-stage ventures.
Starting in mid 2009 tantalite ore prices began to increase dramatically. In less than a year, tantalite ore prices more than doubled, with prices in June 2011 peaking at $132 per pound. What has caused this rise?
A year ago, China's announcement of export quotas sparked a frenzy in the world of rare earth elements. This year another announcement quotas has not caused quite the same shock, but a price explosion has ensued nonetheless.
The quotas amount to a figure which, if extrapolated for the entire year, would almost approach the 30,000 tons that were set for 2010. This is roughly what the industry expectation was, according to one insider.