This Rare Setup Is a Profit Opportunity for Investors

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. This Rare Setup Is a Profit Opportunity for Investors By Nomi Prins, Editor, Inside Wall Street with Nomi Prins Rare earth elements. If you haven’t heard of them, don’t worry. You’re not alone. Most people haven’t. Yet these metals are essential to modern life. There are 17 rare earth elements (REEs). They are usually found together in nature. And they’re included on the Periodic Table. REEs are used to make crucial components for advanced electronics like iPhones, electric cars, flat-screen TVs, and computers. For example, Erbium amplifies light. It’s used in fiber optic cables. Gadolinium goes into X-rays and MRI machines. Europium is needed for lasers and fluorescent lights. And Neodymium is used in cell phones and laptops. Even the screen on which you are reading this essay depends on REEs. REEs are also crucial components of sophisticated military equipment. They are used in guidance systems, drones, anti-missile systems, radars, and fighter jets. The U.S.’ topline fighter jet, the F-35, contains nearly a thousand pounds of REEs. You can’t make the advanced electronics in these fighter jets and consumer electronics without REEs. And crucially, there’s no substitute for them. The U.S. military and U.S. consumers are wholly dependent on them. But REEs rarely make the headlines. And that’s precisely what spells opportunity for investors. Recommended Link [Attention Reader | Ominous Financial Forecast Ahead]( [image]( ***ATTENTION*** This video has been made freely available in the interest of the American public. It’s an ominous financial forecast published by a legendary financial research firm… It’s been called the “New American Nightmare.” Evidence reveals high-profile tech billionaires, including Elon Musk, Jeff Bezos, and Mark Zuckerberg… The Hollywood elite… Major U.S. banks… And active members of Congress are all involved. CBS calls it “grotesque”… If you have ANY money in the markets — In stocks, bonds, 401k, pension, gold, cryptocurrency, or private investments… Stop what you’re doing and watch this video immediately. [Click here to confirm this video is still available now.]( -- The Problem with Rare Earths But the name is a bit of a misnomer. REEs are actually not that rare. In fact, in many parts of the world, they’re abundant. But finding REEs in concentrations that make them economic to mine is difficult. And once you’ve found them, mining and processing them is even more challenging. It’s messy and expensive. For instance, to get 500 pounds of REEs, miners have to move and process around 88,000 pounds of rock. And doing so in an environmentally friendly way is even trickier. [Featured: Millionaire Trader Drops Bombshell… “The Only Trade You Will Ever Need”]( Dominant Supplier Holds All the Power However, there’s one country that’s been able to pick up the slack – China. You see, there are a few reasons why China is willing to do the hard and dirty work other countries avoid. First, it doesn’t fret about the environmental fallout. This allows it to produce REEs at a much lower cost than its competitors. Second, China subsidizes the rare earth mining industry. This backing has enabled it to mine and export these materials at prices far below actual production costs. As a result, many mines in the U.S. and elsewhere are unable to remain profitable against cheap Chinese exports. Many have gone out of business. That’s how China came to dominate this strategic industry. Former Chinese leader Deng Xiaoping once said, “The Middle East has oil. China has rare earths.” Today, China produces and processes almost 60% of global REE supplies, as you can see in this chart. [Chart] And it could restrict rare earth supplies overnight. This isn’t some wild speculation. China has done this before. In 2010, it triggered one of the most spectacular REE booms in recent memory. Recommended Link [MAKE PUTIN PAY]( [image]( Putin’s gone MAD. His invasion of Ukraine hurts civilians… And wreaks havoc on global markets. But what can YOU do about this reckless thug? How about a little [REVENGE]( One expert just closed out a 10-bagger play as the oil price soared… His firm delivered 40 stocks that shot up an average of 600% the last time we saw an inflation and shortage crisis. These winners came from one revolutionary corner of the market that’s THRIVING right now… So, I ask you… [DO YOU HAVE WHAT IT TAKES TO MAKE PUTIN PAY?]( -- China’s Rare Earths Playbook It all started with a Chinese fishing boat. It was sailing in disputed waters when it collided with a Japanese coast guard patrol boat. Consequently, the Japanese arrested the fishing boat’s captain. China demanded his release. But Japan refused. The incident sparked a major diplomatic dispute between the two countries. China cut off all REE exports to Japan and cut global exports by 40%. As you can see in the chart below, some REE prices went vertical as a result. [Chart] This caused a veritable mania in REE stocks that lasted for nearly a year. Many of them reached record prices. More to the point, the incident was clear proof that China is willing to use REEs as a weapon. And here’s why we’re keeping a close eye on the situation… U.S.-China Relations Are Rocky To say that U.S.-China relations were grim under President Trump is probably an understatement. But U.S.-China relations have not “reset” under President Joe Biden in the way many expected. You may not hear about it in the mainstream media every day, but the U.S. and China remain locked in a trade war. U.S. tariffs on $350 billion of Chinese products are still in place. And due to the effects of the pandemic, China has been unable to fulfill its promises to purchase $200 billion in U.S. agricultural and other products. Meetings between Biden and Chinese leader Xi Jinping have borne no real fruit. I don’t see this situation changing any time soon. Especially since China formally accused the U.S. of instigating the war in Ukraine. [Featured: If you’ve got any money in a U.S bank account or retirement plan… Click Here]( What This Means for Your Money If U.S.-China relations continue to deteriorate, it could lead to another mania in REEs. Granted, this may sound speculative. But if history is any guide, there’s a good chance it may happen. China has vaguely threatened to restrict exports of REEs again in recent years. That spells an opportunity for savvy investors willing to get ahead of the potential stampede into REEs. Right now, REE prices are still near their lows for the cycle. Since they hit all-time highs in January 2011, REE stocks have lost 68% of their value. You can see this decline in the chart below. It shows the VanEck Rare Earth/Strategic Metals ETF (REMX), which is widely used as a proxy for the rare earths sector. [Chart] However, they started trending upward as U.S.-China relations deteriorated under Donald Trump. And that trend has continued with Biden in the Oval Office. To me, this indicates an attractive entry point. Recommended Link [Nomi Prins: “What I said on Fox Business…”]( [image]( “Did you catch my recent interview on Fox Business? On the air, I shared a prediction that’s already playing out in the markets, right now. I said the Fed wouldn’t raise rates as much as most in the mainstream media expect. And so far, I’m right. Later in the segment, Fox host Charles Payne asked me: “What’s happening that most people might be missing… that you really want people to know?” I only had a few seconds to answer on the show, so I’ve recently decided to record another, more in-depth [interview to show viewers exactly what people are missing in today’s markets.]( In it, I also made a big new prediction about what the Federal Reserve will likely do next… and what Americans can do to ensure their financial future is protected.” – Nomi Prins [Click here to see the entire interview.]( -- How to Play This Rare Setup The best way to get exposure to rare earths prices is to buy shares in REE-related companies. But investing in REEs isn’t easy. Unfortunately, there isn’t a large list of quality companies mining REEs. Also, nearly every company that produces a meaningful amount is listed in China. So it’s difficult for everyday investors to access them. Many other large mining companies produce only small amounts of rare earths. So they’re nowhere close to pure REE plays. The good news is that there’s another way to take advantage of this opportunity. The ETF I mentioned above, the VanEck Vectors Rare Earth ETF (REMX), is a straightforward REE investment you can access with a regular brokerage account. It holds companies involved in producing, refining, and recycling rare earth and strategic metals and minerals. So it gives you broad exposure to the REE industry. And I’m working on an essay about how the U.S. is taking action to fight China’s dominance in the rare earths space… and how you can profit. So keep an eye out for that in the coming weeks. Happy investing, and I’ll be in touch again soon. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. Right now, I’m also tracking another profit opportunity for you… It’s a $150 trillion transfer of wealth that will transform America. And it could transform your wealth, too… if you know where that money is flowing. I just released an urgent briefing all about it… and how you can profit. To watch it, [just go right here](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: This Rare Setup Is a Profit Opportunity for Investors). --------------------------------------------------------------- MAILBAG Which of Nomi’s ETF recommendations are you finding most profitable? How do you predict that rocky U.S.-China relations will continue to impact your money? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: This Rare Setup Is a Profit Opportunity for Investors). 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