"truth about why rare earth stocks are surging" ?? Simple law of demand and supply. Economics 101 imo~
Just like to add on to Takato above comment.
There is heaps of Iron Ore, copper, etc around the world. Does it means that BHP , Rio and other iron ore company need to close down their mines. What happen to the Iron ore, copper, etc prices over the last few years ... did it drop ???? NO !!! DEMAND AND SUPPLY
If there is a down turn in the world economy than it will also affects every other mining companies not only the RE
For the time been, China is only manage to produce just sufficient for their own consumption, that is the main reason they are reducing their export on RE. It will be another 5 years before oversupply comes into effect. But than will the prices drop??? ..think of the iron ore. more n more iron ore are found everyday.
I honestly believe it will be another 5 years before any downturn in RE price.... maybe
LYC Price at posting:
$1.47 Sentiment: LT Buy Disclosure: Held
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