Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Why Obama Should Address the Rare Earth Crisis

Politics / Metals & Mining Sep 14, 2011 - 01:13 AM GMT

By: Jeb_Handwerger

Politics "A little bread-and-butter support by Obama could provide an important boost for the rare earth industry."

There is a fast growing crisis to modern industrial nations posed by China's draconian and monopolistic maneuvers in the implementation of a quota system. With one specific bread and butter support by Obama, the rare earth industry (REMX:NYSE) could receive an important boost, providing jobs and facilitating the development of a new industrial sector.


One of our carefully researched rare earths stocks is the only domestic source not only of rare earths, but of the highly and truly critical heavy rare earths namely dysprosium and terbium, uniquely available right here in the U.S.A.  Unlike Molycorp (MCP:NYSE) and Rare Earth Elements (REE:NYSE) in the U.S. and Lynas (LYSCF:ADR) , who control light rare earth deposits, which although valuable and advanced are not strategic and vital for our national survival. 

Despite erroneous comments by one negative source possibly representing short sellers and competitors, the truth is that Ucore's (UCU:TSX.V; UURAF:OTCQX) Bokan Mountain is one of the highest grade world class heavy rare earth deposits with the only 43-101 compliant heavy rare earth resource in the United States.

Why is it so important that Gold Stock Trades highlights this American heavy rare earth source as a strategic asset? Consider that this mineral treasure trove hopes to develop a mine essential to the very defense of our nation such as guided missiles and highly top secret uses that are being kept under strategic governmental wraps.

Our country is in imminent danger of becoming a client of China. From the very time we allowed our native rare earth industries to be expropriated by the Chinese so many years ago, we are now on the verge of reaping the whirlwind reaped by our short sightedness.

China is shrewdly gaming us into positions of weakness and dependency. To ignore the global chess game being developed by China is close to an act of treason or at least malfeasance by our elected representatives.

It is a tragedy that we are selling our natural resource birthrights for a mess of Beijing pottage. America should reject any dependency on foreign nations whose motives are not based on altruism and only benefit their own interests.

A vital part of our high tech economy depends on rare earths components. It would be very welcome if Obama could emphatically declare an emergency Executive Order fast tracking American rare earth industrial development.

We must be bold and pick up the gauntlet that China is slyly throwing at us. It is survival time on a national level.

It is noteworthy that there is a huge presence of short sellers in rare earth and uranium stocks. It is more than curious the shorts have chosen close to every one of the stocks followed on our GST select list.

Attention must be paid to the consideration that these short sellers are wielding a double edged sword. Should only one positive news item come out in the burgeoning rare earth sector, the short sellers will be sent scurrying to cover with a consequent parabolic rise in the price of rare earth equities.

Obviously, the shorts must believe that the position represented by the case for rare earths is subject to criticism. They must feel that the rare earth case is being drummed without any basic substance to their story and are a long way from fruition. Of course, Gold Stock Trades differs. The shorts are skating on thin ice and once major reversals begin they will have to cover huge positions.

Therefore we would welcome Obama's long overdue positive comments on the importance of the rare earth industry to modern industrial American growth. Imagine the jobs and new industries that would be created by such Presidential approbations.

Stay tuned for developments.

Disclosure: I am long UURAF and LSYCF.

By Jeb Handwerger

http://goldstocktrades.com

© 2011 Copyright Jeb Handwerger- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Shawn
14 Sep 11, 07:15
Naive

I stopped reading here: "America should reject any dependency on foreign nations whose motives are not based on altruism and only benefit their own interests."

Really? Is the author that naive or blinkered? So state backed Capitalism by the Chinese has to be in the best interest of the US and not itself?


Post Comment

Only logged in users are allowed to post comments. Register/ Log in