Rare earth metals or now known as the not so rare have attracted investor interest because of super increasing prices and supply restrictions.
Bill Harris, Portfolio Manager at Avenue Investment Management, is in the bubble camp. He says the price of rare earth metals is unsustainable and he’s pulled out of the market altogether.
“Is rare earth in a bubble? By definition it is,” he told media. “If China shuts off control, nobody can buy long-term contracts, there’s no future market.”
Harris believes the flood of money into the sector has some advantages, as the increased capital will result in more production and supply.