Why Rare Earth Metals are the Future of Investing

Rare earth metals (REEs), 17 metallic elements found on the periodic table, are found in virtually all modern technology you own - from permanent magnets made with neodymium-iron-boron to sensors used in electric cars and more. Their presence pervades modern life.

China dominates rare earth extraction and production, which could pose risks as an investment opportunity. Thankfully, REEs have unique characteristics that make them appealing investments opportunities.

Demand for Rare Earth Elements Continues to Grow

Demand for rare earth elements is expected to remain high, due to hybrid and electric vehicle production, renewable energy technologies, and other green technology applications. Unfortunately, rising demand will result in increasing prices; investors that capitalize on these price changes can potentially gain attractive long-term returns by investing in companies that mine and refine these metals.

An effective way to gain exposure to rare earth minerals is through stocks of companies that mine and process these metals. You can purchase these stocks through either your brokerage account or exchange-traded funds (ETFs); one popular ETF that investors should consider investing in is VanEck Rare Earth/Strategic Metals ETF (REMX).

Not all investors rely on ETFs when investing in rare earth mining companies; direct investments can also be found through rare earth mining companies listed on major stock exchanges worldwide such as ASX or other major exchanges worldwide. Many of these rare earth companies are emerging leaders within their industries - for instance Lynas Rare Earths (LYSCF), an Australian firm located near Melbourne recently received Pentagon funding to open an US processing plant, making it one of the only suppliers outside China of such valuable materials.

Consider purchasing stocks of companies that recycle rare earths as another investment option to reduce carbon emissions and diversify your portfolios. Such companies are experts at turning recycled rare earths into raw materials used by modern manufacturers for various applications, including catalytic converters for petroleum refining and magnets in small and large motors. Investors seeking to reduce carbon emissions while diversify portfolios could consider this strategy as an excellent option.

No matter how investors seek exposure to rare earths, it is vital that they conduct careful due diligence before making investment decisions. This is particularly pertinent for foreign mining companies where political instability could potentially impede operations; mining of rare earth metals also has severe environmental ramifications which should be carefully evaluated against any long-term returns available.

Rare earths offer long-term returns for investors with long time horizons who are comfortable with some level of risk, though investors should keep in mind their investments may be highly volatile due to supply disruption risks and geopolitical concerns.

https://seekingalpha.com/article/307402-molycorp-is-a-buying-opportunity-after-falling-on-earnings

Supply of Rare Earth Elements Is Limited

Rare Earth Elements, or REEs, are one of 17 chemical metals with unique fluorescent, magnetic and conductive properties that make them perfect for high-tech components like permanent magnets, rechargeable batteries, LED lights and flat panel displays. Manufacturers utilize REEs for consumer electronics like flat panel TVs or smartphones as well as wind turbines and cars while defense contractors utilize them for producing laser weapons and sonar devices.

As one might expect, rare earth elements (REEs) are in limited supply due to being found together in geologic deposits that require expensive technology for separation and refining. China dominates global REE reserves with over 90% control and exports driving prices higher.

Rare earth metals certainly present opportunities, but investors should proceed with caution. Unlike other commodities, REEs don't have exchange-traded futures contracts and must be bought and sold through mining companies directly - not to mention finding new deposits can take several years or longer!

As with most investments, rare earths should ideally be acquired through mining companies that produce these metals; however, other options exist such as purchasing shares of companies that recycle these metals like Metal Tech Recycling Corp (NASDAQ: MTRX) in the US or Geomega Resources in Canada - this can help mitigate potential demand spikes when these metals come back into demand.

Another way is to invest in a fund dedicated to REE mining companies; one such example would be the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX), which contains an index composed of American, Australian, and Chinese REE mining firms.

As part of their investment portfolio, investors may wish to consider REE-related stocks listed on the ASX, such as MP Materials or Lynas Rare Earths Ltd (ASX: LRY). Both have rare earth concentrating facilities outside China, while Lynas recently relocated its processing operations from Malaysia to Kalgoorlie - this could decrease vulnerability posed by any possible processing ban in Malaysia while meeting rising demand.

http://investingoldorsilverxfch936.theburnward.com/to-invest-in-rare-earth-metals

The Future of Technology Is Rare Earth Elements

Rare earth elements, as their name implies, are relatively uncommon, yet are essential for modern technology and industry. Found naturally but difficult to extract, these 17 metals have unique optical and magnetic properties which make them essential in consumer electronics such as televisions, laptop computers, tablets and cameras; rechargeable batteries; automotive catalytic converters; wind turbines and hybrid cars; white LED lamps/fluorescent lamps as phosphors for LED bulbs/fluorescent lamps as well as glass additives/polishing compounds.

Rare Earth metals are set to experience unprecedented demand over the coming decade as more consumers purchase hybrid and electric vehicles, increasing demand and driving up prices accordingly. Now is an opportune time to invest in mining companies which supply rare earth elements.

As one method for investing in rare earth minerals, buying shares in mining companies that explore, mine and refine them is one approach. When searching for mining corporations to invest in it is best to choose those with proven mining techniques, reasonable rare earth market shares, consistent output and steady cash flows - for instance Metal Tech Recycling Corp and American Resources Corporation in the US as well as Geomega Resources (GOMRF) in Canada are great examples.

One way of investing in rare earth minerals is through processing companies that specialize in them. Such firms can add value by reducing raw material costs, improving purity levels and expanding physical characteristics - increasing usefulness across applications while decreasing dependence on China, which currently imposes export restrictions. Magnequench and Lynas Rare Earths in Australia are good examples of such firms.

Rare earths investment can be rewarding for investors willing to accept large share price fluctuations associated with this sector, however short-term investors might benefit more by opting out. As this industry can be volatile and short-term dips may occur more often, investing in other sectors might be better.

The Future of Investing Is Rare Earth Elements

Rare earth elements (comprising 17 silvery-white elements known as Rare Earths; scandium (Sc), yttrium (Y), and the Lanthanoids [cerium through lutetium [Lu]), collectively referred to as Rare Earths) are critical components for many green technologies and low-carbon industries, yet are far from rare; natural deposits exist all around the world.

However, their production is heavily concentrated in China, creating risks for investors. If China decides to limit exports or introduce price controls that raise costs drastically and hurt companies who depend on these suppliers for supply, investors could find themselves facing enormous losses.

Rare earth metals are essential components of green technologies, from hybrid and electric vehicles, wind turbines, and renewable energy applications such as photovoltaic cells to wind turbines and photovoltaic modules. Their use in hybrid vehicles, electric cars, wind turbines, solar energy technologies and other renewable energies is expected to grow with growing concerns about climate change and fossil fuel dependency. Each battery used for electric or hybrid vehicle operations contains several pounds of rare earth compounds used as power storage, and demand is rising quickly as consumers opt to switch away from internal combustion engines in favor of electric or hybrid vehicle options.

Demand for rare earths has also increased rapidly as demand for catalysts, phosphors, and polishing compounds for high-quality glass and electronic devices increases. Thankfully, rare earths are less toxic than many other metals and easier to recycle.

Investors will find consolation in knowing that increased funding of rare earth mining technologies has created opportunities for rare earth mining companies. Investors can purchase stocks of those involved or seek exchange-traded funds specializing in this sector.

One option available to investors is VanEck Vectors Rare Earth/Strategic Metals ETF (REMX), which holds shares from Chinese, American and Australian companies involved with rare earth production. There are also smaller mining companies providing exposure to this sector.

Rare earth investments offer investors a promising future, yet investors must keep in mind that this sector can be volatile and only includes a select few companies. There are also environmental risks associated with their production - thus the key to successful rare earth investing is finding a company which produces these materials sustainably and ethically.