Exotic Metals – Rare Earth Elements, Lithium, Tantalum And Niobium Heating Up

by Olivier on July 27, 2009

As there is not much else I see happening in the markets right now I am just going to restate the obvious: The Rare Earth Elements sector is doing extremely well right now. Personally I don’t think it makes a big difference which specific sector a stock belongs to. For the general public it simply doesn’t make a big difference. The reason why this is so is probably because it is too difficult to understand all the differences between those elements. People have a natural tendency to simplify things in order to be able to make decisions in complex situations. Odds are most people associate Lithium and Rare Earth stocks to a broad sector they likely label as the Exotic Metals Sector.

I have two sector overview charts on my public list. One is named Rare Earth Elements the other one Lithium. You can easily access these Sector Overview Charts through my website.

Recently I stated I will focus on the two stocks I consider to be the leaders: AVL.TO – Avalon Rare Metals and RES.V – Rare Element Resources. I changed my mind and might expand my exotic metals exposure even more. As the rare earth bullmarket is starting to get more attention I will probably buy a few more stocks and won’t restrict my exposure to the two aforementioned leaders. Toyota and other companies are starting to sign more LOIs (Letters of Intent) with resource companies to secure future supplies. Chances are Jim Dines and John Kaiser will recommend more stocks in that sector. They have a huge following and a recommendation would be a catalyst to drive up prices. That’s what makes these stocks high potential stocks. The sector is hot and new money is flowing into very small stocks. Some of them have tight share structures like RES.V. That’s a factor that sure helps to move prices.

These are stocks that either caught my attention today or offer the chance of being recommended by high profile newsletter writers:

  • TNR.V – TNR Gold
  • CLQ.V – Canada Lithium
  • QUC.V – Quest Uranium
  • CCE.V – Commerce Resources
  • LI.V – Lithium One (formerly CNY.V – Coniagas Resources)
  • GWG.V – Great Western Minerals

Have a great evening!

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