“History doesn’t repeat itself, but it does rhyme. And we’re certainly seeing that with rare earths right now.”
This week I sat down with our resource expert Gerardo Del Real to record a new Investing U episode on rare earths.
These 17 curious elements have odd names like dysprosium, europium, and yttrium, and are in demand for their powerful properties of magnetism, conductivity, and refraction. They’re used in everything from defense technologies and medical equipment to cordless drills and your cell phone.
As an investor, Gerardo knows about rare earths better than just about anyone, since they’re how he got his start in investing. He was able made quadruple digit gains on rare earths companies back in 2010-2011, when geopolitical events between the US and China sent prices soaring. Gerardo was able to use those macro influences on demand to generate giant gains, turning $10,000 into more than $400,000+.
Now, more than a decade later, we’re witnessing a similar kind of showdown between the US and China. And new funds from Uncle Sam are creating new incentives for small mining companies who can bring the supply back to North American shores.
In this episode, Gerardo walks us through rare earths, why they’re so unique and important, and how to make the most of big price swings as an investor.