{"id":6431,"date":"2019-06-04T19:03:59","date_gmt":"2019-06-04T19:03:59","guid":{"rendered":"https:\/\/www.themorganreport.com\/blog\/?p=6431"},"modified":"2019-06-04T19:43:06","modified_gmt":"2019-06-04T19:43:06","slug":"rare-earth-metals-etf-heats-up-on-trade-war-talk","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/","title":{"rendered":"Rare-Earth Metals ETF Heats Up On Trade War Talk"},"content":{"rendered":"<div class=\"sc-tabs-wrap\"><ul class=\"sc-tabs\"><li class=\"active\"><a href=\"#\" data-id=\"1\">Trading Recommendations<\/a><\/li><li><a href=\"#\" data-id=\"2\">Cash Flow Gold & Silver<\/a><\/li><li><a href=\"#\" data-id=\"3\">Save In Silver<\/a><\/li><\/ul><ul class=\"sc-tabs-panes\"><li id=\"sc-pane-1\" class=\"active\">Market Analysis &#8212; Investing &#8212; Trading Methods At The Morgan Report For Only $50 Per Month. | <a href=\"http:\/\/www.themorganreport.com\/join\" rel=\"noopener\" target=\"_blank\">http:\/\/www.themorganreport.com\/join<\/a><\/b>. <\/li>\n<li id=\"sc-pane-2\">Discover How YOU Can Cash-Flow Gold &#038; Silver For A Passive Income Of 12% &#8211; 26.4% Per Year Just Like Real Estate&#8230; <a href=\"http:\/\/www.themorganreport.com\/cash-flow-gold-silver\" rel=\"noopener\" target=\"_blank\">Get more details here.<\/a><\/li>\n<li id=\"sc-pane-3\">Starting your own precious metals savings program is an easy way to automatically save in gold and silver. This makes it easy to maintain a disciplined program for increasing your ownership of history\u00e2\u20ac\u2122s most proven stores of value. <a href=\"http:\/\/preciousmetalssavingsprogram.com\/\" rel=\"noopener\" target=\"_blank\">Learn more here.<\/a> <\/li><\/ul><\/div>\n<p>Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk<\/p>\n<p><strong>Rare-Earth Metals ETF Heats Up On Trade War Talk<\/strong><\/p>\n<p>The trade spat between the U.S. and China has brought rare-earth metals back into the spotlight and sent the exchange-traded fund based on these minerals soaring.<\/p>\n<p>The VanEck Vectors Rare Earth\/Strategic Metals ETF (REMX) rose 15 percent in the last two weeks of May, and saw hefty inflows as Chinese state media reported China\u2019s President Xi Jinping visited a rare-earth processing firm in southern China in late May. Additionally, media reports citing the People\u2019s Daily newspaper said China is contemplating using rare-earth metals as retaliation in the trade war.<\/p>\n<p>The 17 elements classified as rare-earth metals are used in rechargeable batteries for hybrid and electric cars, computers, military equipment and a host of other technology purposes. The name is a bit of a misnomer; the metals themselves aren\u2019t necessarily rare, they just aren\u2019t found in large, concentrated deposits, says Brandon Rakszawski, director of ETF product development at VanEck.<\/p>\n<p>China has some unique geological deposits for these metals, but the U.S., Australia and a few other countries also have rare-earth metals, says David Morgan, editor of metals newsletter The Morgan Report. What China has in abundance, though, is refining capacity for these metals.<\/p>\n<p>That\u2019s critical because unlike metals like gold or silver, processing rare-earth metals is much more toxic than other metal refining, in part because of the acids used to separate the metals.<\/p>\n<p>If trade spats and rare earths sound familiar, it should. In 2010, China reduced its export quotas globally, with some trade experts saying it was in retaliation to a territorial dispute between China and Japan, which China denies. That caused global prices to spike.<\/p>\n<p>Eventually, the U.S., Japan and the EU brought a case to the World Trade Organization, which ruled against China. The country eventually dropped its export restrictions, causing prices to plummet.  <\/p>\n<p>Rakszawski notes that REMX launched at the end of 2010, allowing the fund to participate both in some of the price run up and in the subsequent drop.<\/p>\n<p>He says the timing of the fund\u2019s launch was coincidental. \u201cIt was well in the works before then, but you can see based on some of the run up in price there was certainly demand at the time for access to the space.\u201d<\/p>\n<p>It\u2019s hard to draw direct parallels between what happened in 2010-11 and now because the situations and supply chains are different, Rakszawski says. In 2010-11 it was a global restriction, now it\u2019s primarily targeted at the U.S. While China remains the dominant player, they don\u2019t have the stranglehold they once did. Australia\u2019s Lynas Corp., for example, has mines in Australia and a refining facility in Malaysia.<\/p>\n<p>It\u2019s hard to say what role\u2014if any\u2014rare earths will play in trade negotiations, Morgan and Rakszawski both say.<\/p>\n<p>Looking at REMX, the fund provides access to more than just rare earths with its inclusion of what VanEck calls strategic metals such as tungsten and manganese. The fund follows the market-cap weighted MVIS Global Rare Earth\/Strategic Metals Index composed of 20 mining companies. The largest country weights are China (26 percent), Australia (25 percent) and Canada (10 percent). It has $257 million in assets under management, and about $140 million has come within the past two weeks, Rakszawski says. REMX has an expense ratio of 0.59 percent.<\/p>\n<p>Frankly, the fund\u2019s performance has been erratic, if not poor. While it\u2019s up 7 percent year to date, it\u2019s down 37 percent on a one-year basis. It has an average three-year return of 0.5 percent, but has posted an average annualized loss of 12 percent during the past five years. The closest comparison for a benchmark would be Morningstar\u2019s equity precious metals category, which is up 2 percent year to date, down 10 percent on a one-year basis, down 3.6 percent on a three-year basis and down 2 percent on a five-year basis.<\/p>\n<p>Rakszawski says REMX was created to provide access to an otherwise difficult-to-trade part of the market.<\/p>\n<blockquote><p>\u201cI would never discuss this with clients and investors as a core position,\u201d he says. \u201cI think you have to be aware of the industry and have some sort of view on where you are in a commodity cycle, and where supply and demand trends are heading.\u201d<\/p><\/blockquote>\n<p>Even if rare-earth prices skyrocket and become a key part of negotiations, Morgan says don\u2019t expect the U.S. rare-earth mine in Mountain Pass, Calif., to contribute to supply. The mine\u2019s prior owner, Molycorp, went bankrupt after prices on rare earths plummeted in 2012. And, he points out, when Mountain Pass was operational it sent the ore to China for processing anyway. Even though the mine has new owners (it was bought by an American-led consortium that includes a Chinese rare-earth miner as a minority, non-voting partner), it will take years to ramp up mining production there.<\/p>\n<p>Morgan is taking a wait-and-see approach on rare-earth metals, and says investors need to be cautious regarding this subsector of commodities. \u201cThis is not like speculating in precious metals,\u201d he says.<\/p>\n<hr \/>\n<p><strong>Let My Passion Create Your Wealth.<\/strong><\/p>\n<p>I&#8217;ve Been Helping My Subscribers Weather the Current Economic Mess. Now I Invite You to Join My Growing Circle of Successful Investors.<br \/>\nThe Morgan Report is all about YOU and how you can build and preserve Wealth for generations to come. We know it can sometimes seem a daunting task to protect your assets and preserve or grow your wealth. Over 15 years ago, a small group of us started The Morgan Report and formed an exclusive membership organization to promote personal freedom, an honest money system, free market wealth accumulation and asset protection.<br \/>\nThus was born The Morgan Report &#8211; since then we&#8217;ve helped 11,000-plus members scattered over the globe in every continent and over 100,000+ e-newsletter subscribers have read our weekly e-newsletter &#8212; This Week&#8217;s View from The Morgan Report.<br \/>\nThrough our publication, The Morgan Report, we provide you with ways to achieve greater financial security and wealth in all sorts of environments.<br \/>\nLearn more and become an insider for The Morgan Report, click link below&#8230;<br \/>\n<a href=\"http:\/\/www.themorganreport.com\/join\">http:\/\/www.themorganreport.com\/join<\/a><br \/>\n&nbsp;<\/p>\n<p align=\"center\"><font color=\"#AF0000\" style=\"font-size: 14pt\"><b>Special Riches In Resources Free Report<\/b><\/p>\n<p><\/font> Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining your Free Report. Just enter your first name, your primary email address and click the Get Special Report button below.<\/a>\n\t<\/p>\n<div class=\"AW-Form-1281419199\"><\/div>\n<p><script type=\"text\/javascript\">(function(d, s, id) {\n    var js, fjs = d.getElementsByTagName(s)[0];\n    if (d.getElementById(id)) return;\n    js = d.createElement(s); js.id = id;\n    js.src = \"\/\/forms.aweber.com\/form\/99\/1281419199.js\";\n    fjs.parentNode.insertBefore(js, fjs);\n    }(document, \"script\", \"aweber-wjs-jc8lzhdt3\"));<\/script> Our mission statement reads&#8230;<br \/>\n<b><i>&#8220;To teach and empower people to understand the benefits of an honest monetary system.&#8221;<\/i> <\/b><br \/>\nToday&#8217;s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps more simply stated, wealth can be printed. History has shown throughout 5000 years that whenever a country has tried to maintain this illusion (lie), failure has been the result. We invite you to learn more about what The Morgan Report can do for you. Click on the Learn More About The Morgan Report button now!<br \/>\n<center><a href=\"http:\/\/www.themorganreport.com\/join\" class=\"sc-button\" style=\"background: default\"><span><strong>Learn More About The Morgan Report *<\/strong><\/span><\/a>\n&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk Rare-Earth Metals ETF Heats Up On Trade War Talk The trade spat between the U.S. and China has<span class=\"read-more\"><a href=\"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/\" title=\"Read More\">More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":6435,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[379,378,381,377,376,375,374,373,372,371,370,369,383,380,382],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rare-Earth Metals ETF Heats Up On Trade War Talk<\/title>\n<meta name=\"description\" content=\"Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rare-Earth Metals ETF Heats Up On Trade War Talk\" \/>\n<meta property=\"og:description\" content=\"Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/\" \/>\n<meta property=\"og:site_name\" content=\"The Morgan Report News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/pages\/The-Morgan-Report\/317004435015437\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-04T19:03:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-04T19:43:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.themorganreport.com\/blog\/wp-content\/uploads\/2019\/06\/YoutubeCover-rareearthmetaletf.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"David Morgan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@silverguru22\" \/>\n<meta name=\"twitter:site\" content=\"@silverguru22\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Morgan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/\",\"url\":\"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/\",\"name\":\"Rare-Earth Metals ETF Heats Up On Trade War Talk\",\"isPartOf\":{\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#website\"},\"datePublished\":\"2019-06-04T19:03:59+00:00\",\"dateModified\":\"2019-06-04T19:43:06+00:00\",\"author\":{\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/e33e6f7f03bcb4719cf2d431fb9148e3\"},\"description\":\"Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#website\",\"url\":\"https:\/\/www.themorganreport.com\/blog\/\",\"name\":\"The Morgan Report News\",\"description\":\"Helping You Build And Preserve Wealth\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.themorganreport.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/e33e6f7f03bcb4719cf2d431fb9148e3\",\"name\":\"David Morgan\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7377f4d8bf4cf2393f48c981c52fe513?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7377f4d8bf4cf2393f48c981c52fe513?s=96&d=mm&r=g\",\"caption\":\"David Morgan\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Rare-Earth Metals ETF Heats Up On Trade War Talk","description":"Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/","og_locale":"en_US","og_type":"article","og_title":"Rare-Earth Metals ETF Heats Up On Trade War Talk","og_description":"Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk","og_url":"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/","og_site_name":"The Morgan Report News","article_publisher":"https:\/\/www.facebook.com\/pages\/The-Morgan-Report\/317004435015437","article_published_time":"2019-06-04T19:03:59+00:00","article_modified_time":"2019-06-04T19:43:06+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/www.themorganreport.com\/blog\/wp-content\/uploads\/2019\/06\/YoutubeCover-rareearthmetaletf.png","type":"image\/png"}],"author":"David Morgan","twitter_card":"summary_large_image","twitter_creator":"@silverguru22","twitter_site":"@silverguru22","twitter_misc":{"Written by":"David Morgan","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/","url":"https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/","name":"Rare-Earth Metals ETF Heats Up On Trade War Talk","isPartOf":{"@id":"https:\/\/www.themorganreport.com\/blog\/#website"},"datePublished":"2019-06-04T19:03:59+00:00","dateModified":"2019-06-04T19:43:06+00:00","author":{"@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/e33e6f7f03bcb4719cf2d431fb9148e3"},"description":"Read this post on Rare-Earth Metals ETF Heats Up On Trade War Talk, then please share with your friends and family on social media and use the caption: Rare-Earth Metals ETF Heats Up On Trade War Talk","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.themorganreport.com\/blog\/rare-earth-metals-etf-heats-up-on-trade-war-talk\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.themorganreport.com\/blog\/#website","url":"https:\/\/www.themorganreport.com\/blog\/","name":"The Morgan Report News","description":"Helping You Build And Preserve Wealth","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.themorganreport.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/e33e6f7f03bcb4719cf2d431fb9148e3","name":"David Morgan","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7377f4d8bf4cf2393f48c981c52fe513?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7377f4d8bf4cf2393f48c981c52fe513?s=96&d=mm&r=g","caption":"David Morgan"}}]}},"_links":{"self":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/6431"}],"collection":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/comments?post=6431"}],"version-history":[{"count":4,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/6431\/revisions"}],"predecessor-version":[{"id":6436,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/6431\/revisions\/6436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/media\/6435"}],"wp:attachment":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/media?parent=6431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/categories?post=6431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/tags?post=6431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}