_Rare earth stocks us
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Rare earth stocks us - As I look for the biggest wealth building sector in 2011, I expect it will be energy, specifically alternative energy. Alternative energy includes things like nuclear power, solar, wind, battery, etc.
Oil will also do well. Cycles also look like oil will move much higher. There could very likely be a repeat of the oil spike of 2008 this year, sending the price per barrel up to the $200 - $250 per barrel level from the $90 per barrel level today. How can I say that? OPEC has not increased the supply (reminiscent of 2008) and we all know how that turned out.
When oil prices skyrocket, alternative energy becomes more cost effective. With China contracted to build over 40 new nuclear reactors, there is a lot of demand for uranium already. Nuclear power is a green energy that I believe will be more widely adopted by the U.S. as well - eventually. Nuclear power plants run on uranium, which is not very abundant. Uranium is one of my favorite investments right now (actually I'll disclose it appears to be the #1 cycle for this decade!).
Other elements in short supply are rare earths. They are elements like molybedenum that are used for alternative energy like windmills, electronics, and electric cars. The US has a good supply of rare earths, but they don't have the mines built yet to mine it and it takes a couple of years to build them, so China has a stranglehold on the above ground rare earths - also a favorite long-term investment of mine.
The third favorite is getting hard to come by in the physical and that's silver. Rumors are that silver is taking months to be delivered. Can you say short squeeze? That's when institutions like JP Morgan sell it without owning it, hoping to buy it back later at a lower price. That works fine when people aren't demanding that physical silver be delivered instead of just rolling over (renewing) the contracts, but since that's changed, the price went up 70% last year. In my opinion, it has a long way to go, but there will be sharp pullbacks along the way.
So which will do best in 2011...uranium, rare earths, or silver? All three. I like the uranium exchange traded fund (a basket of uranium stocks) URA, rare earths: REMX, Exxon Mobil:XOM, and Sprott's Physical Silver fund: PSLV. Be forewarned, these are highly volatile, but a small position today could just be the winner of 2011 and beyond.
Rare earth stocks us
Rare earth stocks us - As I look for the biggest wealth building sector in 2011, I expect it will be energy, specifically alternative energy. Alternative energy includes things like nuclear power, solar, wind, battery, etc.
Oil will also do well. Cycles also look like oil will move much higher. There could very likely be a repeat of the oil spike of 2008 this year, sending the price per barrel up to the $200 - $250 per barrel level from the $90 per barrel level today. How can I say that? OPEC has not increased the supply (reminiscent of 2008) and we all know how that turned out.
When oil prices skyrocket, alternative energy becomes more cost effective. With China contracted to build over 40 new nuclear reactors, there is a lot of demand for uranium already. Nuclear power is a green energy that I believe will be more widely adopted by the U.S. as well - eventually. Nuclear power plants run on uranium, which is not very abundant. Uranium is one of my favorite investments right now (actually I'll disclose it appears to be the #1 cycle for this decade!).
Other elements in short supply are rare earths. They are elements like molybedenum that are used for alternative energy like windmills, electronics, and electric cars. The US has a good supply of rare earths, but they don't have the mines built yet to mine it and it takes a couple of years to build them, so China has a stranglehold on the above ground rare earths - also a favorite long-term investment of mine.
The third favorite is getting hard to come by in the physical and that's silver. Rumors are that silver is taking months to be delivered. Can you say short squeeze? That's when institutions like JP Morgan sell it without owning it, hoping to buy it back later at a lower price. That works fine when people aren't demanding that physical silver be delivered instead of just rolling over (renewing) the contracts, but since that's changed, the price went up 70% last year. In my opinion, it has a long way to go, but there will be sharp pullbacks along the way.
So which will do best in 2011...uranium, rare earths, or silver? All three. I like the uranium exchange traded fund (a basket of uranium stocks) URA, rare earths: REMX, Exxon Mobil:XOM, and Sprott's Physical Silver fund: PSLV. Be forewarned, these are highly volatile, but a small position today could just be the winner of 2011 and beyond.
Rare earth stocks us