The Biggest Rare Earth Gains Are Still to Come

First to the finish line…first to market…first to an opportunity.

Why wouldn’t you want to be first?

First is best.

Even the academics say so…

According to one study, we tend to prefer the option we see first. Researchers found this in relation to salesmen and packs of gum.

Participants preferred the first one they saw.

Even judging criminals sequentially seems to have an effect on our decisions.

Let’s just say if it’s you and me up for parole, I want to be the first one the board sees.

Watch These 10 Aussie Mining Stocks Go NUTS in 2019 (No. Eight Is A Ripper!)

The joys of being first

Of course, first isn’t always best.

Even when it comes to business.

The ‘first mover advantage’ idea is based on the premise that the first mover has no competition. They can accumulate resources and build infrastructure that act as fixed costs, barring new entrants from jumping into the industry or niche.

Sometimes that works. Sometimes it doesn’t.

Not only is the first mover first to market, they’re also the first to make all the mistakes.

They’re the ones that have to painfully move up the steep learning curve. And sometimes that isn’t cheap.

The first movers can also sometimes be a little too early. Maybe you’re first to a market that’s not even there yet. You end up paying for that too.

Yet while it has its drawbacks, our aim here at Money Morning is to make sure you’re first.

We want you to be the first ones to new opportunities. The first ones to ideas few others are talking about.

Hey, we might be early sometimes. And other times we’re just not on the money.

But we’re looking for special situations…events that few are talking about, but could be highly profitable as ‘the majority’ piles in.

Consider what I pointed out earlier this month:

To make real money you’ve got to be looking for opportunities that others aren’t. This doesn’t mean you make far off, unlikely, unprofitable bets.

The tenants of investing always stand — try to buy something for less than what it’s worth.

Yet it’s incredibly hard to find opportunities that deliver really big gains if it’s something everyone else is trying to do too.

Did Warren Buffett follow the crowd into American Express as the share price halved in 1964?

Did Michael Burry make hundreds of millions betting against the US housing in 2008 after seeing everyone else do it first?

Big gains come to those who can identify opportunities before anyone else. And these are the kinds of ideas we want to spotlight here at Money Morning.

Sam and Ryan went hunting for rare earth opportunities

Months ago, my colleagues over at Australian Small-Cap Investigator, Sam Volkering and Ryan Clarkson-Ledward, were focusing on a special opportunity.

It was one few were talking about, and could hand their readers huge gains if things materialise.

That opportunity was rare earths, and what might happen if the tensions between the US and China kick off.

Granted, we didn’t do a great job of highlighting that opportunity months ago here in Money Morning.

But look at the headlines now…

Here’s one from Reuters:

Money Morning

Source: Reuters
[Click to open new window]

Few were talking about the rare earth opportunity months ago, other than Sam and Ryan.

Yet today, it’s a topic the mainstream has put their full weight behind. Reported by Reuters, but republished by South China Morning Post:

Although China contains only a third of the world’s rare earth reserves, it accounts for 80 per cent of US imports of minerals because it controls nearly all of the facilities to process the material, according to US Geological Survey data.

“We are looking for any source of supply outside China. We want diversity. We don’t want a single-source producer,” Jason Nie, a material engineer with the Pentagon’s Defence Logistics Agency, said on the sidelines of the Argus US Specialty Metals conference in Chicago.

One of those places could be Australia.

We are the second biggest producer of rare earth, after all.

Free report reveals three tiny mining stocks set to ride the lithium frenzy. Click here to find out who they are.

It’s why Sam was delving into the rare earth world all the way back in 2016.

He knew it was a strategic resource. He knew the US would lift heaven and Earth to lessen their dependence on Chinese supply if push came to shove.

It’s also why Sam and Ryan went rare earth hunting…far before it became a mainstream talking point.

They wanted their readers to be first to the opportunity. And they could potentially see big gains ahead.

Check out how this rare earth exchange traded fund is popping already on the mere threat of supply restrictions…

Money Morning

Source: Bloomberg
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Again, these are the kinds of opportunities we want to highlight in Money Morning moving forward.

Ideas that are unusual, special or different. Big investment opportunities that the mainstream are not talking about…yet.

Essentially, we want you to be first!

Your friend,

Harje Ronngard,
Editor, Money Morning

PS: Rare earth is not the only opportunity from this trade spat. Tariffs — which are disrupting trade — are only the beginning.

There are technological changes taking place, which might change the entire global trade landscape…

I explain all in a recent Money Morning video. You can watch that by clicking the picture below.


Harje Ronngard is the lead Editor at Money Morning. He’s also the Editor of Wealth Eruption and Gold & Commodities Stock Trader, and co-Editor of the Third Wave Portfolio.

The aim of both Wealth Eruption and the Third Wave Portfolio is to find misunderstood opportunities. These are the type of investments that multiply small amounts of money five- to 10-times in size.

Harje has an academic background in investments and valuation. He’s had experience across a range of asset classes, from futures to equities.

For any investment, Harje believes you only need to ask two questions. What is it worth? And how much does it cost? These two questions alone open up a world of opportunities, which Harje shares with Money Morning readers five days a week.


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