Posted on 09/16/2014 9:53:05 AM PDT by SeekAndFind
Shares of rare earth mining company Molycorp are down more than 70% in 2014. But the decline of Molycorp began quickly and brutally in 2011.
Molycorp went public in July 2010 at $14 per share, right as the price of rare earth minerals started to take off.
The price of Molycorp shares quintupled within a year, and peaked at $74 in 2011.
But over the last three years, the stock has been on a steady march towards $0.
The 2010 surge in rare earth prices prompted ZeroHedge to write: "Ever heard of the oxides of Lanthanum, Cerium, Neodymium, Praseodymium and/or Samarium? With price surges between 250% and 600% in one quarter, you may wish you have."
Rare earth elements are used to make lasers, magnets, and plasma TVs, among other products. These elements also aren't exactly rare, but aren't found in huge concentrations the way coal is found en masse in one spot, making them expensive to mine.
Most rare earth productions was coming from China, which created a problem with making a fair market in rare earth mineral prices. But despite this concentration, a Bloomberg report from June 2011 cited industry analysts who saw the high prices continuing as supply failed to meet demand.
(Excerpt) Read more at businessinsider.com ...
Rare Earth was more of a hippy folk band, certainly not Metal.
Is Hopium a metal? There was a Bernie Madoff clone selling it about 6 years ago. Turned out to be a major scam.
for later
>>Rare Earth was more of a hippy folk band, certainly not Metal.<<
IIRC, Kermit the Frog was their front singer...
If I’m not mistaken, China has been expanding their mining operations in Africa for the last 10 years. They now have a virtual lock on the resources of these materials in Africa.
Get Ready!
Glad all my rare earth investment is in Unobtainium.
Yes Sir! I’m heavily invested as well.
Super-high prices massively incentivizes new production, whereupon prices tumble. Unless something limits new production.
This is not exactly an obscure principle of economics.
Supposed to a trillion bucks worth in Afghanistan, too. I guess the stan is going to stay worthless?
Afghanistan too.
http://worldblog.nbcnews.com/_news/2009/10/14/4375983-resource-hungry-china-heads-to-afghanistan
Cameron pissed off all of Hollywood when he actually USED that as the mineral causing the strife in Pocahontas Avatar.
"Unobtanium" is a movie development standard placeholder (like "MacGuffin) in scripts or treatments, usually replaced by some name at the last minute.
By actually USING the term, Cameron took that away and I think Hollywood is still looking for an alternative.
I see you got my point.
I just love that piece.
‘cause it’s true.
!
Engineers have been using the term for years, as in, "That thing won't fly unless you make it of pure unobtanium."
one hobby is making video movies, usually for the 8th grade graduation party. The Computer teacher at our school asked me to talk to her class, and I used this piece. I told the class the technology is the easy part - it is the idea that is the hard part of a movie. I told them ideas can some times be 'borrowed'. I had three read this script. very funny
>>Engineers have been using the term for years, as in, “That thing won’t fly unless you make it of pure unobtanium.”<<
I didn’t know that. But it makes sense from an Engineering POV.
Physicists tell you what can’t be done. Engineers do it anyway.
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