Monday, May 25, 2009

Lithium and Rare Earth Elements: James Dines - Next Major Bull market. TNR.v, SQM,, RES.v, CDNX, HUI, XAU, ESLR, GOOG, BYD, TTM, DAI, NSANY,

To all geopolitical concerns for Mr Obama this week added one more: who will control Next Industrial Revolution and Green Mobility Technological base? Chinese are moving very fast and now holding not only the key to financial health of US Dollar and US Corp itself, but also controlling production of strategic commodities for 21st century like Lithium and almost 90% of market of Rare Earth Elements (REE) - basis for Electric Car mass production dreams. But nothing is hopeless this time, there are people with ideas, companies with properties and people with money, who are ready to make this thing happen. We just need to make them find each other and keep all special interests out of the play field for a couple of years - to prove viability of this concept and make it impossible to kill Electric Cars again.
We have another fine gentleman in our Exclusive Club of the Next Big Thing and Major Bull market. This time it is James Dines - a widely followed The Dines Letter writer. His last prediction about Uranium Bull made early buyers a lot of money and he always gets attention. Our Next Big Thing is charging fast and money is coming into the sector. Suddenly investors are waking up to the reality of Alternative Energy and Green Mobility revolution with political spice: majority of REE is produced by China and now experts are talking about quotas for Export of REE from China as a strategic commodity and base for Next Industrial revolution. Will America for real try to reinvent capitalism by technology driven production of new means of transportation based on sustainable Green solutions? Is the time of Old Boys from Oil Lobby over or at least they will decide not to kill for another buck their kids? Will people start all over again: spend what they earn, save and invest to make the New Real Deal happen? No politics here: plane Common Sense - this is the only way out of Bankrupt Financial Economy with PlayStation kids running the show. Choice is very simple: Fall of Rome or painful Next Industrial revolution based on transition from fossil fuels and into the Green Mobility revolution. Banking must be again boring and solid and all fun must be back to Ventures and Technology driven new Bull Markets. Our safe way to ride the Tide - are commodities for 21st century. We will bet on Internet needed for all new Googles and Ebays to come, we will try to avoid, where we can, former Etoys, Commerce Ones and Aribas. Our play of this Bull are electrons safely stored in Lithium batteries under management of REE based controlling devices. Another twist to our Bull story are super alloys of particular REE needed for super magnets for powerful light weighted Electric Power Trains of Electric Cars.

Actually, the real moving star of today's story was Avalon Rare Metals with move Up 65% on 2.5 million shares.

We are pleased to see that our Lithium Play TNR Gold TNR.v has shared the fun and moved Up 29% on 600 thousand shares. Stock is still below the radar screens of investment public, but accumulation is well under way and Dr. Frederic Breaks founder of Avalons REE Deposits is now on board of this small junior.

CEO of TNR Gold Gary Schellenberg recently discussed REE, Tantalum and Lithium in his interviews and company is aggressively building its portfolio of Lithium and REE properties. James Dines added fire to all these Latin words by his recommendation of Avalon Rare Metals and his idea about REE Major Bull Market. Now Schellenberg's excitement about Tantalum and Lithium is making sense for investment crowd and his story is getting attention.

By Brian Truscott
VANCOUVER -(Dow Jones)- Two TSX Venture-listed rare earth companies are enjoying strong gains Monday - an otherwise quiet day on the Toronto Stock Exchange as U.S. markets are closed for Memorial Day.
Commerce Resources Corp. (CCE.V) and Rare Element Resources Ltd. (RES.V) are up 32% and 37% respectively, in part because two well-regarded market watchers are talking up a niche resource sector that's largely unknown to the everyday investor.
Investment-letter writers James Dines, who writes the Dines Letter, and John Kaiser, who writes the Bottom-Fish Online report, say rare earth elements are increasingly important to global markets.
Dines, who has declared himself a big-time 'investor bug' of various nascent markets in the past, said last Friday that rare earth elements could be the next major surprise bull market.
Why? Rare earth elements, which go by names such as thulium and lanthanum, are used in numerous electronic applications as well as superconductors, super-magnets, refining catalysts and hybrid-car components.
The two other rare metals one needs to know about are tantalum and niobium. Tantalum is widely used in the electronics industry. Niobium is used in steels and superalloys.
The actual amount of these elements that go into producing, say, hybrid cars is small but necessary. Supply is therefore vital to producers that need these rare elements in their products.
Kaiser agrees, saying the value of rare earth element miners will be increasingly strategic as demand for product outstrips global supply.
Enter Commerce Resources, a late-stage tantalum and niobium explorer, and Rare Element Resources, which has a key rare earth project in Wyoming.
As Kaiser says, the strategic worth of what they're sitting on in the ground is becoming as valuable as the elements themselves.He used a recent example: state-owned China Nonferrous Metal Mining Group (CNMC) took a majority stake in Lynas Corp. (LYC.AU) this month, giving the Australian rare earth miner US$366 million in funding. While Lynas has offtake agreements to Japanese, European and U.S. clients lasting for the next five years, its rare earth supply could last some 30 years. CNMC has now secured and therefore controls the future supply from one of the richest rare earth deposits in the world, Kaiser said.
That includes tantalum and niobium.
This is all the more important because the U.S. Defence Logistics Agency stopped selling into the tantalum market in 2008. Australia's Talisman, the world's leading supplier of tantalum, has ceased production indefinitely, citing the adverse effect of the black market supply as well as intense pricing pressure.
Black-market production in war-torn Democratic Republic of Congo is, by some estimates, supplying the world with some 30% of its required supply.
As both Commerce Resources and Rare Element Resources move toward production, their leverage on global producers increases, observers say.
'Commerce Resources is in a fascinating global position; the window for tantalum has opened wide,' said David Hodge, president of Commerce Resources. 'We are becoming part of the supply solution on a global basis; no matter what the studies say in terms of the price of extraction, the industry will say yes.'Commerce Resources is hoping to start open-pit production in 2010.
In Toronto, Commerce Resources is up 10 Canadian cents to 40 Canadian cents on 621,000 shares. Rare Element Resources is up 35 Canadian cents to C$1.30 on 633,000 shares.
Web Sites:;
-Brian Truscott, Dow Jones Newswires; 604-669-1595;"
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