China makes rare earths attractive again

13.03., 10:21 Hasso Bergmann

Not a day without new news from China on the economic situation and the measures taken by the Government. We no day without Dax-Records and discussions about the consequences of financial repression and Draghi's bond-purchase program, which has now begun. How strange it may seem in the eyes of the Greeks – with a few exceptions, the world is currently experiencing an incredible flood of liquidity and historically low interest rates. It is now a matter for private investors, to say goodbye to the beloved traditional-interest savings and invest in real assets.

What is true in the real estate market as the main theme – "Location, Location, Location " -, can be easily changed on the hip money strategy of the German population transfer: "Property and equipment, Property and equipment, Property and equipment!"This is not necessarily spite of the enormous problems Europe and the menacing-looking East-West tensions to do with" escape "in the property values. But the opportunities and risks of private investors should sprinkle over the asset classes. Und da können strategische Metalle längerfristig ein wertvoller Portfolio-Bestandteil sein. This is where the music plays in China. This is from the new Newsletter produced for investors the Frankfurt GmbH Tradium, belonging to the European market leaders in strategic metals.

There had been much speculation about, the direction in which the prices of Rare earth would develop after the end of the Chinese New Year celebrations. It is now clear: since the beginning of March it is for many rare earth metals further up! Driven by expectations for building new strategic reserves by the Chinese government to increase their prices the producers. In addition, major acquisitions of investment platform Fanya, the market significant amounts of dysprosium, Terbium and neodymium withdraws.

Progresses, the basic consolidation. Beijing wants namely to control the market for rare earth better and brings together the many small businesses in six major groups. New projects received approval, if they are not settled in the Great. Finally, reported "China Daily", that eight central government departments to call in a joint statement, the provincial governments to, uncover illegal activities and to impose strict penalties. Results will be presented by mid-April. Beijing seems anxious, sustained push by the different measures, the rare earth prices up again.

According to estimates of the Association of Chinese rare earth industry of illegal share more in recent years than 50% taken of the market. A dramatic drop in prices was the result. And that Beijing is now trying with all his might again bring in the right balance. Conclusion of Tradium: "It's more than speculation, that this will succeed official bodies. From this side, so impetus for rising prices – the German investors can benefit!“

Reference: The contents of the columns are for information only and do not constitute investment advice or a recommendation within the meaning of the Securities Trading Act represents nor are they to be considered a warranty of any currency developments. The views expressed are strictly the opinion of the respective author. Each author is solely responsible for the content of the column responsible.
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