A quote from Jack Lifton quoted from Dines Letter. "China pointed out that it had built and installed 13 gigawatts of wind-turbine electricity-generating capacity in 2010, using Rare Earth permanent magnets for efficiency and low maintenance. China's astounding prediction was that by 2020 it would install 330 gigawatts more wind-power capacity, with each 1.5-megawatt generator requiring one metric ton of neodymium-iron-boron magnet alloys, 34% of which (by weight) is neodymium. China's wind power industry would thus need a further 70,000 tons of neodymium, over triple the world's total 2008 production of that metal all as new demand between now and 2018-19, and none left for the rest of the world! Each 2-megawatt turbine would need 500 to 700 pounds of total Rare Earths." Jack Lifton Find out more about Jack Lifton and Rare Earth here: http://www.techmetalsresearch.com/about-us/jack-lifton/ By the look of it in the future Rare Earth is going to be the new oil.
Since the oversubscribed Kimberley Rare Earths Limited (KRE) began trading on the ASX on May 18 it has dived. Just bad market timing? Lynas shares are plummeting too right now. Anyone want to suggest when will be a good time to pick either of these RE plays up? Are there a bunch of others worth looking at?
Gold/Silver shares are also plummeting across the board, according to David Morgan, Summer months are usually bad period for commodity shares. If you are going to enter Rare Earth market, isn't the time when the shares are plummeting is a GREAT time to enter??? Buy at bearish news, Sell at bullish news.
Interested in this myself. But taking a look at RE demand around the world it doesn't seem all that strong at the moment and may decline if China sneezes. Might be a good idea to buy in then. I think the recent dive for LYC was spurred on by the recent market 'downturn' as can be seen across the board. It doesn't look like they have tanked all that much on the graphs. I'd probably wait since this is definitely not the bottom.
I'm not aware of Kimberley Rare Earths Limited, but 3 of Australia's prominent Rare Earth companies are Lynas, Arafura and Alkane.
