Thursday, May 26, 2011

Rare Earth Elements Update

Recent market weakness has not been kind to the commodity space and rare earth element miners were no exception.  These stocks have suffered as the price of the underlying elements continues to rise.  Again, we have predicted that before the end of this bull run defense departments of sovereign states and desperate western governments will throw unlimited amounts of fiat currency at viable solutions to the imminent supply shortage.

We use the product mix of one early to market producer as a method for tracking prices.  If you need to conduct further research Metal-Pages.com offers detailed pricing information.

Our last pricing update was published on April 20th.  While the stock prices of our favorite miners have traded down more than 20% in some cases the oxides themselves have seen another 4.97% increase.  That is in the last five weeks alone and comes on top of the 170% rise since Q4 2010.

Prices as of 5/23/11
Rare Earth OxideDistribution200720082009Q4 2010
 Q1 2011
23/05/11
Lanthanum Oxide25.50%3.448.714.8852.4975.87138.10
Cerium Oxide46.74%3.044.563.8852.6277.52140.60
Neodymium Oxide18.50%30.2431.9019.1281.38130.23230.00
Praseodymium Oxide5.32%29.0529.4818.0378.62119.65215.50
Samarium Oxide2.27%3.605.203.4036.5872.75120.60
Dysprosium Oxide0.124%89.10118.49115.67287.85412.90720.00
Europium Oxide0.443%323.90481.92492.92611.54719.201600.00
Terbium Oxide0.068%590.40720.77361.67620.38717.601300.00
Av. Composition11.5914.8710.3262.1892.84168.30
ld Composition 11.5914.8710.3262.1892.84168.30
There are over 200 companies that claim to have what it takes to achieve production in this space.  We believe that 9 are deserving of precious capital.

If you are interested in learning more about this critical industry please consider the following and contact ksircapital@gmail.com for more information.

Rare Earth Elements Introduction Mac Font

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