Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
So, as far as I can figure, this whole rout in the critical minerals market has less to do with investor behaviour and more to do with global price and supply wars, given that they can determine who dominates the defence, technology and AI spaces. If that's the case, how are these equity valuations ever going to recover and why would you 'buy the dip'? Further to that, for all the chart watchers, did any of them indicate that this rout was imminent?
Hi David,
As we’ve touched on a few times over recent months critical minerals/rare earths are indeed a political hot potato with China controlling the ball and the US attempting to level the playing field as fast as possible. A tough task at the moment with China producing roughly 70% of the world’s mined rare earth elements, while being responsible for ~90 % of processing.
The US can buffer the imbalance fairly quickly, over ~3–5 years (new processing/magnets), but a true “close the gap” outcome is going to take ~5–10+ years, and it will likely happen with the assistance of allies, not the US on its own.
From a technical perspective the main signal that a rout was possible, as opposed to likely, was generated when gains become parabolic, in similar fashion to silver, with such moves rarely sustainable.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
