Posted on 10/25/2010 8:00:01 AM PDT by epithermal
TORONTO (miningweekly.com) - The Financial Times (FT) said at the weekend that the fears of Chinese supplies being squeezed had sent rare earth element companies' stock soaring, and experts warned this was turning into a bubble.
The FT compared the run up in shares to the uranium market in 2006-2008, when the uranium price rapidly rose to an all time high of $135/lb, then collapsed, bringing many companies down with it.
"Most of those companies are now back trading at penny levels," the FT said.
"Six obscure junior miners, based in the US, Canada and Australia, now have a combined market capitalisation of close to $7bn, even though none of them yet mine any rare earths. The total value of rare earths traded in a year is about $2bn," the publication noted.
(Excerpt) Read more at miningweekly.com ...
OK, let me see if I have this straight: China exports too much clothing, but not enough rare earths.
in financial markets a little knowledge can be a dangerous thing. Rare earths prices up? buy the companies in the space (regardless of what they actually have/produce)
Dude I still love Rare Earths 20 min version of Get Ready. Rightous!
What was Mark Twain’s take on it? Something like “A mine is nothing but a hole in the ground with a liar and a fool at the top.”?
Like I said yesterday, there are always finaglers and schemers in every mining venture anywhere on Earth.
I think it was : “A mine is nothing but a hole in the ground with a liar standing next to it”
I think your probably right. I like mine better though with the fool up there as well! ;) (Speaking from experience it seems for me.)
Perfect! I can now sell the uranium that i have kept under my bed all these years
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