Rare Earth Metals Investment - Rare Element Resources Ltd.

The recent Chinese boycott of rare earth metal export to Japan creates worries among the global economy as these metals at the bottom of the periodic table are integral parts into many of today's high tech products.  The worries was transformed into speculation of the rare earth metals stocks as investors took the opportunity the inflate the prices of the rare earth metals stocks such as the previously mentioned Molycorp.  Although China is willing to soften its cut in rare earth metal export, the fact is the country still control 95% of the global supplies rare earth metals so the recent pull back on the rare earth metals stocks may be great opportunity for investors.


There are very few public traded rare earth metals stocks available and beside Molycorp another public traded is the Canada based Rare Element Resources Ltd.(REE).  Shares of Rare Element Resources have been on a wild ride for the past 5 months as the price went from $1.15 per share in June to as high as $14 in October, making a incredible 1100% gain in just four months.  The stock has dropped back below $10 to $9.95 recently and is approaching 50 day moving average.  From the technical chart the KD lines indicate a bounce back yet if K line dropped below D line again there could be more sell-off.  So at this point it would be better to stay on the side line and wait till the dust settles.