Success in critical metals depends on finding the trends - how the metals will be used, where market share is allocated - and on familiarity with the companies you invest in, from who is on the management team to how much cash they have on hand.
China's tight grip on rare earth elements supply may loosen as other deposits around the world come to fruition in 2012 and the head of global research with investment bank Byron Capital Markets, discusses the supply and demand fundamentals.
In the announcement from the ministry, it was stated that the first round of quota allocations (totaling 24,904 t) will represent 80% of the quota allocations for 2012, which indicates that the total for the coming year will be 31,130 t of rare earths
The problem with rare earths and critical metals is that there are too few mines worldwide to construct statistically valid cost curves. The rare earth sector is currently dominated by Chinese mines whose financial reporting may not be transparent.
The worldwide hunt for new sources of critical metals has some miners hitting the beach, tapping sand and river placer deposits in search of naturally processed minerals, according to the scientist and rare earth expert.
Despite weak across-the-board market sentiment, the Jacob Securities Analyst maintains that rare earths will continue to revolutionize our daily lives and explains how to pinpoint investment opportunities.
The various rare-earth markets are interdependent in a complex way that depends on their end uses. Greedy stock promoters are no match for the forces of the market. "Announcements" are not solutions to problems of supply.
Tee co-founder of Technology Metals Research LLC, gives us the lay of the land in the rare earth sector. Many variables are shaping this developing market, and data makes the difference in determining viable investments.