Email of the day (2)
"How might one invest in rare metals?"
David Fuller's view I would only
consider doing this through the companies which mine them.
They are highly speculative, as I mentioned last week, not least because
few of these companies make any money at present so it will certainly be a few
years before we see reliable earnings streams, let alone dividends. Nevertheless,
they are in an interesting, strategic sector regarded as critically important
by high-tech companies and the military. This situation has arisen following
last year's significant cutbacks in the supply of rare earths metals exported
by China, which has a temporary stranglehold on the sector.
Eoin
produced this spreadsheet of rare
earths miners which you can find in the Chart Library. For the record, I personally
have small long positions in three of them: Lynas, Avalon and Quest, and I also
commented on Ucore last Friday.
Note:
for more on this subject, please use the 'Search' facility shown upper left,
fourth item down, and you will find 60 earlier items on rare earths.