Rare Earth Stocks Hottest
Over the last week, rare earth stocks have caught fire again. Molycorp, Inc. (NYSE:MCP) is soaring today, trading at $58.85, +3.34 (+6.02%). It has gone almost straight up over the last eight trading days. On March 18th, 2011, MCP was trading at $42.10. Truly an amazing move in a short amount of time. Other small China rare earth plays are also soaring. China GengSheng Minerals, Inc. (AMEX:CHGS) is up 12% today and has gone from $1.97 on March 22nd, 2011 to a high today of $3.68.
These stocks are getting a major momentum squeeze on the back of fear. As the world prints more money, demand from emerging markets jumps, hoarding seems to be on the mind of Wall Street. This mentality is leading towards a dramatic increase in stock price for companies that deal in rare earth. Just like gold and silver, the more money printed, the more diluted the currencies become while rare earths and gold and silver are the only place to store true wealth.