The Market Vectors Rare Earth Strategic Metals ETF (REMX) is marching higher today, following a near-breakout yesterday at around $25.50 a share. It closed Wednesday at $25.64 a share, a penny short of its highest finish in 2011.
Today, it’s up 1.7%, or 44 cents, at $26.08 a share. Rare earth metals are used in everything from hybrid car batteries and iPads to high-tech weapons. The ETF has returned 6.8% so far this year, says Morningstar, and has gained 4.7% in the past three months.
As noted earlier, China China says it’s going to start imposing a tax on shipments of rare earth metals starting April 1.
Also looming are export quotas set to be announced by China soon for the second-half of the year.
“Traders are concerned that China will severely cut its export quotas again — even more than those announced in December for the first-half of this year,” says Jeb Handwerger, publisher of the Goldstocktrades newsletter and editor of the Goldstocktrades.com website.
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