We’ve published this before, but with MolyCorp exploding higher once again, and all of the rare earth stocks on a big roll we wanted to re-introduce you to it.
What the rare earth bolls don’t want you to know is that rare earths aren’t all that rare, there are substitutes, and China’s dominance is overrated.
It basically comes down to this:
- Yes, China does control 95% of rare earth production.
- But that’s mainly because it has the loosest environmental regulations. They are in abundance all around the world.
- Rare earths aren’t really that rare… they’re more prevalent than gold.
- And demand over the long-run is elastic. Companies are in fact finding alternatives to them.
So before you jump into the rare earth stocks to ride the bubble, at least get some background.
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