Investing In Rare Earth Metals – Options & Tips

When you think about rare earth metals, China is the name that comes to mind. China produces 95% of the global rear earth supplies. If you’re looking to invest in a rare earth metals company outside China, here are a few options available to you:

1.      Lynas Rare Earths

This company has the strategy to create a fully integrated source of earth metals, and to set a benchmark for the security of supply and environmental standards in the industry at a global scale. Lynas Malaysia rare earths plant is currently under construction near Kuantan in Pahang.

The strategy was founded at Mount Weld in Western Australia. Lynas will ensure that all material for which the Malaysian public is concerned is removed through conversion into co-products, and exported in compliance with all regulations in an acceptable form.

2.      Molycorp USA Rare Earths

Molycorp is located at Mountain Pass in California, USA. The company is vertically integrated across the global rare earth mine-to-magnetics supply chain, and has operations across 11 countries with 26 different locations. The production includes 13 different rare earths (heavy and light), transition metals (zirconium and yttrium) and five rare metals (indium, gallium, rhenium, niobium, tantalum). The company leads in global production of neodymium-iron-boron (NdFeB) magnet powders used to manufacture bonded NdFeB permanent rare earth magnets. The company is going to focus on next-generation rare earth metals in 2013.

3.      Great Western Minerals Group

This company produces special alloys that are used in magnet, battery and aerospace industries. It’s an integrated rare earth processor. The production takes place at the subsidiaries Less Common Metals Limited in Birkenhead, U.K, and in Troy, Michigan at the company. It holds 100% equity ownership in Rare Earth Extraction Co, which has a 74% equity interest in the Steenkampskraal Mine, and possesses interests in four rare earth exploration and development properties across North America. The company announced it was on the right track to complete the refurbishment of the rare earths mine Steenkampskraal in Northern Cape province, in South Africa by mid of 2013.

Investing in a Rare Earth Metals Company – tips

1.      Diversify the risks

You need to start at a smaller ground and grow your investment portfolio with time. This is going to give you time to learn more without putting too much capital at risk. Exchange traded funds are a great way to spread risks.

2.      Analysis

Do some technical analysis before doing investment in rare earths. This will help you to determine how to trade, when to trade and how much to trade. This can be done by reading the daily news about these metals. Keeping up-to-date will also help you to make a strategy.

Investing in a rare earth metals company can be beneficial with a proper strategy in the long run. But, like with all investments, you’ve got to do your research and due diligence. And, most importantly, you’ve got to be patient.

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