Rare Earth Metals

Snowman2

There are many brokers selling rare earth metals as an investment.
The FSA has just issued a public warning advising against it in their consumer information section on investment scams. Has anyone made any money from these investments?

dtaylor84

The main problem with investing in rare earth metals is that they aren't particularly rare.

See http://www.theregister.co.uk/2012/12/23/rare_earth_non_monopoly/

I'd stay well clear.

Narrowboatlife

If they are not very rare what else can one invest in? is it true silver is more rare than gold?

grey_gym_sock

in the long term, the best asset classes have been equities (i.e. owning businesses) and real estate (land). of course, the future may be different.

lvader

Rare earth metals are thought to be a good investment because there is a supply risk, it virtually all comes from China and they aren't keen on exporting it. If prices exploded then more mines outside of China will spring up and cool prices again but it takes many years to get to that point.

dtaylor84

lvader wrote: »

If prices exploded then more mines outside of China will spring up and cool prices again but it takes many years to get to that point.

We're already past that point.

lvader

There has been the odd miner that was already in the pipeline. There isn't enough capacity if China pulls the plug.

jimjames

Narrowboatlife wrote: »

If they are not very rare what else can one invest in? is it true silver is more rare than gold?

Shares maybe? Something you can actually get a long term return on?

grey_gym_sock

china may be raising prices sharpish. i don't see why they'd pull the plug.

there may well be a temporary rise in the prices of these metals, until more mines can be brought on line. doubtless some ppl will make money out of that. but if the price move is temporary, you have to get the timing right to make money.

sibot74

lvader wrote: »

There has been the odd miner that was already in the pipeline. There isn't enough capacity if China pulls the plug.

Certainly is - more than enough, already on-line or near-line. Have a proper read of the link provided up-thread.

markwilkinson

dtaylor84 wrote: »

The main problem with investing in rare earth metals is that they aren't particularly rare.

See http://www.theregister.co.uk/2012/12/23/rare_earth_non_monopoly/

I'd stay well clear.

Very interesting link dtaylor84 - thanks for posting it.