Rare Earth Metal stocks continue to crash in 2015 and there is no sign of a rebound.
So, what exactly are rare earth metals? Rare earth metals are a set of 17 chemical elements on the periodic
table. These rare metals are only found in select locations around the world with China holding a vast majority of these
metals. A lot of these metals are used for lasers, nuclear batteries, camera lenses, magnets, ceramic for self cleaning
ovens, computer memories, hybrid car engines, wind turbines, and fluorescent lamps. It is said that China owns over
95% of the supply.
Many old computers and laptops are being recycled because they contain
rare earth metals. The problem is that the USA and other countries have relied on their own supply of rare earth metals
but are now needing them from China which owns a vast supply. Several years ago, China was limiting exports
on these rare metals to several countries. This is what is caused rare earth metal prices to surge.
While I don't think rare earth metals will rebound in price in 2015 or 2016, many stocks are down 90% if you think
this sector will come back. I will highlight a few below.