Currently, there is only one company that is producing rare earth elements in the U.S. economy—Molycorp, Inc. (NYSE:MCP).
Investors who believe this is an opportunity to profit big going forward may want to look at a company like Molycorp, since it’s the only one producing these metals. These investors also might want to look at other firms that are currently looking for these elements or have discovered them already. Once they start producing, their profitability can be significant.
Investors must also be aware that this is a situation in the making. As I have said in the past, things can turn very quickly. Right now, we are witnessing the rush because there are concerns over supply from China; this can change very quickly and the supply can recover. Investors need to focus on their risks, rewards, and long-term goals.
This article is brought to you courtesy of Moe Zulfiqar from the Daily Gains Letter.