View Single Post
Old 02-12-2012, 03:54 PM   #419
mhgaffney
Ring of Famer
 

Join Date: Apr 2006
Posts: 11,322
Default

My take on equities is as follows.

(You may not want to hear this -- but here it comes anyway.)

Very risky time for stocks in general. I would not go there -- except in very special circumstances.

I have invested $12,000 in two rare earth mines -- in Australia. They are supposed to start producing rare earth elements this year. The only other production of these increasingly important elements is under Chinese control.

China had a corner on the market on rare earths for years. They priced the stuff so low -- that no one could complete. We had a mine in the Mojave that had to shut down.

Then, 14 months ago -- the Chinese announced a sharp decrease in their exports. They are obviously trying to protect their own high tech.

The rare earths are being used increasingly in cells phones, computers, LED lights, wind generator turbines etc etc/

The demand at present is virtually unlimited -- with very limited supply. Other nations are trying to gear up to produce. There's a rush on -- but it takes years to bring a mine into production. The US mine on the Mojave is hampered by red tape -- EPA regs -- and will not get back into production for years.

If the two mines down under start producing as expected -- the stock will have to go up. No where else to go.

It's risky -- but a reasonable gamble. The payoff could be huge.

MHG
mhgaffney is offline   Reply With Quote