Ottawa Investment Advisor John Bruce

What Are Rare Earths?

October 22, 2010 · Print This Article

You will always hear this mantra when seeking to invest your money, “Buy low, and sell high”. This is good advice, however it is only good when it happens! The question that should be asked is, “What can I buy now, that others will pay more for later?” If I knew that I would own an island in the Caribbean by now. Every now and then though, an occurrence happens globally that gives a higher probability of getting a hint of what may be the next valued commodity. That is happening right now!

The following article I believe will be of interest to you. If you wish to know more and want to find out how this may fit into your investment strategy, call me asap. Time waits for nobody, and this move has just started!

FACTBOX-What are rare earth elements?

2:24 PM Eastern Daylight Time Sep 24, 2010

Sept 24 (Reuters) – Rare earth elements are used in a wide range of consumer products, from iPhones to electric car motors.

Rising tensions between China and Japan over an embargo on rare earth elements may spell good news for miners looking to fund projects outside of China.

Here are some facts on this elusive group of 17 metals:


Lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, scandium, yttrium.


Rechargeable batteries for electric and hybrid cars, advanced ceramics, magnets for electric car motors, computers, DVD players, wind turbines, catalysts in cars and oil refineries, computer monitors, televisions, lighting, lasers, fiber optics, glass polishing, superconductors, and weapons.


Rare earths make for smaller, lighter batteries and motors. The drive to miniaturization was first popularized by the Sony Walkman personal cassette tape player. Rare earths are now key to making handheld devices like Apple’s iPhone and Research In Motion’s BlackBerry.


China uses 51 percent of the world’s rare earths, while Japan uses 17 percent. Global demand is forecast to grow rapidly as demand for green products increases.


China produces over 90 percent of global supplies. China mined 120,000 tonnes in 2008. Molycorp in California produces 3,000 tonnes per year, while Silmet Rare Metals in Estonia produces 2,400 tonnes per year. There are small amounts of rare earths mined in India, Malaysia and Brazil.


The demand for dysprosium, terbium, neodymium, praseodymium and europium is set to grow by a minimum of 8 percent a year. Electric vehicle demand for dysprosium, neodymium and praseodymium is set to grow by an average of 790 percent in the next five years.

Sources: U.S. Geological Survey, company web sites, Byron Capital Markets (Reporting by Julie Gordon; Additional reporting by Steve Gorman and Sonali Paul; Editing by Michael Perry and Paul Tait) ((; +1 416 941 8136; Reuters

Copyright © 2010 (C) Reuters 2010. All rights reserved.

If you have any questions as to how position yourself to capture this potential opportunity call me toll-free at: 1-866-860-4190.

John S. Bruce
Ottawa Investment Advisor
Also licensed in ON, BC, AB, QC, NS
Mackie Research Capital
Direct Line- 613-425-3732
Toll Free- 866-860-4190

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