Rare Earths Sector ETF (REMX) Booming Again On Trade War With China

Over eight years ago I wrote about a crisis that could unfold in the United States related to rare earth imports from China.  Remember the Chinese control the rare earth market. These rare earths are used in your phones, iPads, and hybrid/electric vehicles.  Just think of rare earths in all your advanced technologies which involve magnets like hard drives and speakers. Some think the rare earth boom has been and gone...but I think it's coming back and it could be very soon.

In this article published back in September of 2011, I warned about a potential   rare earth critical minerals crisis which could cripple the United States economy especially technology companies that use rare earths, such as Tesla (TSLA) and Apple (AAPL) when tensions with China flare up again.

China usurped the rare earth industry away from America back in the 1980's when GM (GM) sold its magnet technology to the Chinese.  No one cared back then as the metals were kind of obscure and the American Public cared more about Michael Jackson. But the Chinese knew that these metals would be the guts of the new mobile technology and defense systems.

I tried to get Obama to make an emergency executive act back during the Credit Crisis to boost jobs and develop a secure USA rare earth supply chain.  All I heard was crickets.

Back then they ignored the fact that these metals are behind our top defense systems, guided missile programs and technologies the public is still unaware as its being kept top secret.  For years I warned that America was becoming a client state of China as the elites sold our most advanced industries for pennies. As I said back then, "We are now on the verge of reaping the whirlwind resulting from our short sightedness on rare earths."

The new administration under Trump has listened to a large segment of the population who know their businesses have been shutdown by the Chinese shrewd game of catering to the corporate elites.  Those who have allowed our uranium and rare earth secrets to be sold over the past 30 years should be tried for possibly treason. Such a tragedy as we are now in such a weak position with the Chinese.

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Disclosure: I am/we are long REMX.

Disclosure:  I/we have no positions in any other stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Adam Reynolds 1 year ago Member's comment

How shortsighted of $GM to have sold the rights to this technology to the Chinese. Now we're at their mercy.