Stories like this are why I'm long Rare Earths:
"Vietnam has agreed to help supply Japan with rare earths, as Tokyo tries to reduce its dependence on China.
"The two countries have also agreed on greater nuclear cooperation, with Hanoi virtually awarding Japan contracts to build two reactors in Vietnam."
Some of this story is old news, of course, but it shows you how fast the Rare Earth market can change:
"China produces around 97% of the so-called rare earths used around the world to make goods such as mobile phones, computers, lasers, televisions and cars.
"But China has been restricting exports of some products in recent years.
"It then stopped shipments to Japan altogether, after a Chinese fishing boat captain was arrested near the contested islands in the East China Sea seven weeks ago."
No, I'm not rushing out to establish new positions at this point. But the news of late has certainly validated the original thesis. (Which was not mine, but James Dines'. I merely thought he made sense and went along for the ride.)
Surely, new supply will come, but it will take a long time to enter the market. This is a long-term accumulation play to buy only on major dips. Incidentally, I'm also doing the same with uranium stocks while the world is chasing gold and silver and junk bonds.
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