China is about to outmaneuver the world – again…
And we’ll all pay for that dearly…
Years ago, China realized there was value in rare earth metals. So they invested heavily and took control of the very metals that were in short supply.
They were smart…
Unfortunately, we find ourselves in an even deeper, dire situation again today.
China – which already controls 95% of the rare earth market – may go after Greenland’s rare earth supply.
While the European Union has urged Greenland to restrict Chinese development of rare earth projects, Greenland has no plans to restrict them.
In fact, according to Reuters:
“Greenland's prime minister warned the European Union he could scrap a preliminary deal intended to safeguard the bloc's access to his country's huge mineral resources, saying Brussels has failed to follow through.”
If China gains the upper hand in the area – reserving rare earth supply for its own – the rest of the world will be let scrambling to meet future rare earth needs.
For us, that’s a nightmare situation.
Without enough supply, we’re screwed.
When you think of where your iPods, cell phones, computers, and electronic motors come from, consider this: China holds 95% of the materials that allow these products to function.
All China has to do is takeover Greenland’s supply and halt the export of rare earth materials -- again—and we’re out of luck…
Electronics would disappear from the shelves and products that depend on these materials would see prices skyrocket, possibly bankrupting the very companies that depend on these sales.
Our last hope would be for Molycorp (MCP) to get its US mine up and running.
How Do You Profit from the Greenland-China speculation?
You can always buy into the rare earth ETF (REMX) or even Molycorp (MCP) at 52-week lows.
But I have my eye on two Greenland-related stocks that could attract heavy investor interest in the near-term. Fast Money Trader is currently doing its due diligence on these two explosive stocks, as we speak… and looking to issue buys on them in days.
Stay tuned for news on rare earths and profit opportunities in Fast Money Trader.
Ian L. Cooper
Fast Money Trader