Imagine getting POT in 1994 at the start of the Potash sector rally. Well people have that same chance today with Rare Earth Element Sector which just started its Rally 2 weeks ago when China said its cutting back on 70% of the Rare Earth Element Exports.
Rare Element Resources (AMEX: REE; TSX Venture: RES) has been on a tear, setting new highs and ripping through C$5/share on Friday. Our viewpoint is that although we have had a great run, shares should be held and one should accumulate on any pullbacks. It is our opinion that we are still so early in the bull market that what today appear to be major moves up or down will be mere bumps in the road on the way to the summit. Rare Element’s potential remains bright as they will be reporting on the economics of their Bear Lodge project regarding the REEs potential, however there is a gold kicker here which could potentially add another, and this is a conservative estimate, C$200 million to the market cap in the years ahead should they be able to prove up a decent sized gold resource.