Satturday May 8th, 2010.
"Lithium is the leveraged play on Peak Oil and rising Oil price with coming Inflation. Sector is very small and market is even more smaller - everything is ready for the parabolic move in case of supporting fundamentals."
James Dines has started the fire with REE market last spring as he did with Uranium before:
"Big IF" was in 2003 when James Dines pronounced bull market in Uranium and we made an easy killing on basket of Uranium Junior miners, some of them going from low 0.2 to over 1.0 AUD on Chinese money coming into the sector in less then a year. James Dines is in the picture again and this May he moved the REE market with value doubled and tripled with his announcement of the first Major Bull market after 2003 Uranium call in Rare Earth Elements. It will be our first take out from San Francisco Hard Assets conference last week - meeting hall was full of crowd and Master energised by attention proclaimed:
In 70s he told to his followers Buy Gold and he was a Gold Bug. He was stared down but refused to retreat. (This phrase followed every of his bullish calls.)
In 80s he told to Buy China and he was China Bug. He was...you know what happen next.
In 1997 he told to Buy Internet and he was an Internet Bug.
In 1999 he told to sell Internet stocks.
He told that it will be era of raw materials in 2000.
2002 he announced Uranium Super Bull.
2005 he told Sell Real Estate.
In November 2008 he told that it is Not the End of the world and mining stocks will double again.
In May 2009 he told about coming Buying Panic in Rare Earth Elements, announced Super Major Bull market in REE and became a Rare Earth Bug. They (REE) will be on front pages and Goldman Sachs owns Molycorp - private company which owns last past producing mine in USA. (We did not verify this information.)
- James Dines, John Kaiser and Jack Lifton are all extremely bullish on Rare Earth Elements and Jay Taylor has picked up recently TNR Gold / International Lithium for his Watch List. James Dines called it "The One Best Area to Buy Now", John Kaiser worried about "Security of Supply in a Changing World" and Jack Lifton reported on "In 2010 What will be the Best Plays in Rare Earths for Small Investors As Well As Large". Reasons sighted are the same as we have discussed before here:
China controls more then 97% of the market now.
By 2014 China will consume everything that will be produced in REE space.
All other REE metrics like 36 kg of REE in every Prius and 300kg of Rare Earth magnets per 1 mW of Wind Tubines."