Here's an excerpt from the latest Dines Letter about Rare Earth: The second leg down of GFC is coming in 2011, when this happen it could be a great point of entry into Rare Earth sector for those who haven't got a position yet.
This is not a recommendation, I'm not an expert in Australian share market. There are 3 in Australia which I'm aware of. Lynas, Arafura and Alkane (i think...). Arafura just had a MAJOR run up in the recent months, I've been pounding my hands on this forum for months urging people to take a serious look into REE market. I don't know how many people listened!?
David Morgan's newsletter January 2011 issue have a section dedicated to REE. January issue in newsletter is probably the most important issue of the year, because it contains last year's market analysis, future year prediction and this year's battle plan (as to what to buy and what to sell going forward). As you can see other newsletter writers had just begun talking about REE and as REE stocks going further up more and more newsletter writers will jump the bandwagon. I strongly suggest prudent investors to watch China closely, this is a country that have long term foresight earlier than most other countries (unfortunately China is very secretive with their investment move, this is why they can accumulate REE for 20 years without anyone noticing). China has been buying and accumulating REE deposit all over the world ever since 1991 while the rest of the world are too busy (and still is...!) speculating bonds and real estate market. Today China controls 97% of REE production in the world. As result, there are 2 different market price of REE outside China and inside China (which is 30% lower that outside price). With 30% discount, China is essentially forcing the world's industry to produce their products IN China (wonder why jobs and factories going to China?). As you can see, China is cornering REE market just as the Hunt brothers did to Silver market in 70s and 80s. The big difference between Hunt brothers and China is... China is a world super power, they are not bound by US or other laws, nobody tells China what to do, not even WTO. With world's industry in China's pocket, China could literally stick their middle finger to WTO and continue cornering REE market and not a single country can do a damn thing about it. The bottom line is, if you live in the 70s and you know that Hunt brothers are cornering silver market, wouldn't you want to take advantage of this situation? Here's an except from David Morgan's newsletter: In mid 2009 Lynas and Arafura, crown jewel of Australia's REE mining, desperately needing funding to further their projects. They can't get monetary help from anybody, Aussies investors, not even Australian government!? Guess who showed up with the cash...? China! James Dines immediately publish email alert in his The Dines Letter, urging Australian TDL subscribers to buy Lynas and Arafura's stocks. Only with the combined might of Aussies TDL subscribers Lynas and Arafura are kept Australian owned.
