Image via Terence Wright/Flickr CC
Gold prices have been on a tear lately, and the safe-haven metal has attracted a lot of attention, note Mark Skousen and co-editor Jim Woods in their Fast Money Alert.
However, when it comes to metals, the bullish trade is not just about being risk-off. In fact, some metals move higher when the global economy booms and when the longer-term view of global growth seems bullish.
Indeed, a lesser-known segment of the metals market actually has outperformed copper year to date: rare earth elements, more commonly known as rare earth metals.
In fact, rare earth metals, as measured by the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX), are up nearly 40% year to date.
This move is reflective of the limited supply of rare earth metals, the difficulty in extracting these compounds from the ground and the demand they’re getting from a variety of high-tech industries.
Now, if you aren’t familiar with rare earth metals, that is certainly understandable. They aren’t exactly household names like gold and copper.
However, we’d be surprised if you didn’t have some rare earth metals in your pocket, on your desk, or at your home right now.
Rare earth metals can be found in nearly every cellular phone, electronic device, computer, etc.
And it’s not just certain electronic devices that use rare earth metals. They are in demand in countless other ways, and that demand is only expected to increase in the years ahead.
Right now, the fast money has been roaring to get a foothold in rare earth, and we know that based on the recent surge in the share price of REMX (more than a 7% gain in the fund in a recent week).
Let’s take advantage of this trend today and buy the VanEck Vectors Rare Earth/Strategic Metals ETF at market, with a protective stop of $18.90.
Mark Skousen is editor of Forecasts & Strategies and High-Income Alert.
Subscribe to Skousen & Woods Fast Money Alert here…
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