Comments on: How To Invest In An ETF Based On Rare Metals https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/ Commentary & analysis on rare earths and other technology metals Fri, 23 Jul 2010 02:37:38 +0000 hourly 1 https://wordpress.org/?v=6.4.2 By: prescient11 https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-410 Fri, 23 Jul 2010 02:37:38 +0000 https://www.techmetalsresearch.net/?p=1300#comment-410 Mr. Lifton,

Looking forward to your post on RES, excited to see how their gold play is progressing as well.

]]> By: Jack Lifton https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-409 Thu, 22 Jul 2010 23:57:08 +0000 https://www.techmetalsresearch.net/?p=1300#comment-409 In reply to Raymond Gabb.

Raymond,

I am not aware of any publicly traded company outside of China that is currently mining rare earths other than Australia’s Lynas. And in that case I believe that although Lynas now has ore above ground that it is waiting until its separation plant in Maylasia is ready to process, i.e., crush, float, and mill to a concentrate in Australia, before shipping it out to Maylasia. I believe also that there is one privately owned mine in Russia’s Kola Peninsula that is producing ore, which is concentrated at the mine or in the Ukraine and then separated and refined ultimately at Silmet in Estonia. I think that the total production of the Russian owned operations (including Silmet) is less than 2000 metric tons a year.

Lithium, by the way, is NOT a rare earth element; it is a rare element today when defined by its current annual production rate. It is not rare in terms of known resources and reserves.

Best regards,

Jack Lifton

]]> By: Raymond Gabb https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-408 Thu, 22 Jul 2010 23:44:09 +0000 https://www.techmetalsresearch.net/?p=1300#comment-408 Can you list publicly traded companies that mine rare earth elements excluding lithium.

Thank you

]]> By: prescient11 https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-407 Thu, 22 Jul 2010 02:16:26 +0000 https://www.techmetalsresearch.net/?p=1300#comment-407 Lithium is the head fake play. Same with tantalum.

]]> By: stephen https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-403 Wed, 21 Jul 2010 10:04:24 +0000 https://www.techmetalsresearch.net/?p=1300#comment-403 I recall an elderly Shetland lady once telling me, “There’s nothing common about commonsense.” Thank you Jack, for your own astute, crystal-clear and commonsense guidance.

]]> By: Olivier Vallee CFA https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-402 Wed, 21 Jul 2010 08:18:21 +0000 https://www.techmetalsresearch.net/?p=1300#comment-402 The question really is what is the lithium being used for. According the SQM figures (which are slightly lower than USGS but somewhat more detailed) glass and ceramics made up 21% of lithium demand in 2006, falling to 15% in 2009; lithium for lubricants went from 17% to 13%. Lithium for batteries went up from 20% to 26%.

Battery use is such as small part of demand that buying a lithium fund on the belief that electric cars will be popular (itself a risky bet) may be misguided. Of the 26% mentioned there were essentially no lithium batteries made for hybrid-electric cars.

I myself don’t expect battery share to increase significantly before 2013-2015, but at that point the tail may indeed start wagging the dog.

]]> By: John Petersen https://www.techmetalsresearch.net/how-to-invest-in-an-etf-based-on-rare-metals/#comment-401 Wed, 21 Jul 2010 06:22:08 +0000 https://www.techmetalsresearch.net/?p=1300#comment-401 Given the reality that mineral content is an exceedingly small percentage of consumer product value and the vast bulk of the value is added by post-mine refining and manufacturing processes, I’d be very cautious about investing in a mining ETF for industrial metals.

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