Chris’ note: My mission at the Cut is to help you find moneymaking opportunities… no matter what kind of market we’re in. That’s why, today, I’m featuring another insight from colleague Nomi Prins.
Nomi is a best-selling author, financial journalist, and former global investment banker. And 20 years ago, she quit a seven-figure job at Goldman Sachs to help regular investors grow their wealth using the secrets she picked up on Wall Street.
Right now, she has her eye on a setup in group of strategic metals the U.S. military can’t do without. And I want to make sure it’s on your radar. As you’ll see below, last time this setup occurred the average gains for these metals was more than 2,000%.
That’s the average gain rare earth elements (REEs) delivered during its last bull market.
If you’re a longtime Legacy Research reader, you’ll know all about REEs. But for the benefit of newer readers, they’re a group of 17 silvery-white metals.
We use them mainly in high-strength magnets. And they’re essential ingredients in a wide range of tech – including electric vehicles, 5G phones, and wind turbines.
REEs are also needed in cruise missiles, bombers, rockets, drones, lasers, and other cutting-edge military equipment. A single U.S. Air Force F-35 fighter jet contains half a ton of REEs, for example.
And that average gain masks even more stunning runups in REEs…
Take cerium. It goes into flat-screen TVs and floodlights. And between 2010 and 2011, it soared 2,978%.
Or lanthanum. We use it in studio lighting and cinema projectors. Over the same time, it soared 4,141%
And some junior REE mining stocks – the smaller, exploration-type companies – did even better.
What happened to cause this spike?
China produces and processes about 70% of the supply of REEs. And in 2010, it banned REE exports to Japan. This was in relation to a diplomatic spat involving a Chinese fishing trawler.
This sparked a mania in REEs and related stocks that lasted about a year.
Why should you care about a boom in these metals that happened more than a decade ago?
Because the New Cold War between the U.S. and China will trigger a boom in REEs that could be even more lucrative than the 2010–2011 bull run.
There’s a lot at play here. So today, I’ll shed light on some important recent developments in this space and show you what they mean for you and your money.
History Is Rhyming
Mark Twain is reputed to have said, “History never repeats itself, but it does often rhyme.”
I was reminded of this when I saw this Reuters headline last month…
China Considers Export Ban for Rare-Earth Magnet Technology
According to the report, China is considering banning exports of certain rare-earth magnet technology. And the intention is to cripple America’s high-tech sector… and its military.
Former Chinese leader Deng Xiaoping said, “The Middle East has oil. China has rare earths.”
He was right.
China knows the U.S. is dependent on REEs for its most sophisticated military equipment. Washington has banned exports of advanced computer chips to China. And Communist Party bosses in Beijing have been itching to hit the U.S. where it hurts for a while.
We know Beijing has done this before over more trivial matters. We also know that it could be a useful bargaining tool.
Beijing can say to Washington, “We’ll reverse our export ban on REEs if you do the same for advanced semiconductors.”
And if China bans REE exports, it can lead to another mania in this market…
The easiest way to get exposure to the next REE boom is through the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX).
It’s an exchange-traded fund (“ETF”) that gives you broad exposure to the REE industry. It holds companies involved in producing, refining, and recycling rare earths and strategic metals and minerals.
And this is just one speculation I have my eye on right now.
As my regular readers will know, I’m even more excited about an under-the-radar development in the energy market.
2 Million Times More Powerful Than Oil
It’s a breakthrough new fuel source that could be the solution to America’s – and the world’s – energy problems.
You see, this breakthrough new fuel source is 2 million times more powerful than oil. And it’s 3 million times more powerful than coal.
But even the nation’s biggest coal states are pushing for it…
State legislatures in West Virginia, Indiana, Missouri, Wyoming, and Montana – which all depend on coal – are moving bills to enable “SMR”.
And I’m more excited about SMR than I have been about any energy trend in decades…
For 68 years, SMR was for government use only. It was classified to everyone except federal engineers.
But a new bill titled S.1111 could thrust SMR into the commercial realm as soon as this Friday… and onto the front page of every major news outlet in the country.
By then, it will be too late for most investors to profit. And I don’t want you to miss out.
That’s why tonight, at 8 p.m. ET, I’m holding a special Power Shift 2023 briefing. (RSVP here instantly.)
My team and I have zeroed in on the only company with a federal license to sell SMR in America.
This tiny Oregon firm is finding an inventive solution to one of America’s biggest problems. And it could hand you gains of as much as 1,900%.
During my briefing, I’ll dive into the details… including a way to profit from this company’s success for less than $2 a share.
To make sure you don’t miss out, reserve your spot here with one click.
Editor, Inside Wall Street With Nomi Prins
P.S. I’m sharing the full story behind this transformative SMR energy tech tonight at 8 p.m. ET.
During my online strategy session, I’ll show you why SMR is finally being released into the commercial sector after being under government wraps for 68 years.
And if you upgrade to my VIP list, you’ll even get access to a new special report my team and I have put together called How My Last Energy Trade Returned 22x in 2023.
In it, I’ll walk you through a trade that gave some of my readers the chance to lock in a 22x gain. Not in the raging bull market of 2020 and 2021… But this year, in 2023.
So go here to upgrade to VIP and access your report now. And I’ll see you tonight.