London July 19, 2010. http://www.raremetalblog.

com/ Having being around trading markets one way or another since mid 1968, including a spell on the floor of the then London Commodity Exchange in Plantation House, before being enticed to New York for more of the same for many years, I¶ve seen bull markets come and go, attempted corners, delivery defaults, protracted bear markets, new derivatives contracts that more and more resemble simple gambling contracts with little underlying commercial necessity, and the arrival of today¶s casino capitalism as practised by the giant too big to fail banking houses dotted around the world. During my time in the markets, London¶s Merchant Banks were deregulated and almost i mmediately were taken over by behemoths from Wall Street, Germany and Japan. Even France snapped up one or two , as the old pre-second world war trading system among former empires, was largely replaced by today¶s cut and thrust anything goes. In time, America followed Britain in deregulating markets, and in typical good old American fashion, enthusiastically took deregulation too far, but that is a story for another day. Along the way since 1968, President Nixon too k America off the last vestiges of a gold standard, and the world for better but mostly worse, ended up on a system of floating fiat currencies, where stability is the last thing anyone intended. But fiat money did set off a global boom that¶s lasted until the present day, and despite our current G-7 stumble, including what I think will be a double dip back into recession early next year, it¶s a global boom that¶s going to continue for several decades more. On fiat currencies, the benefit is that another Lehman simply means resetting the system with loads more newly created fiat currency. Of course that quickly devalues the quality of everyone¶s savings and lifestyles, but that too is a story for another day. So what, I hear you ask, has all this got to do with the best rare metals and earths website on the planet? Well in the markets ³they don¶t ring a bell at the top or bottom´ goes the old saying. No one is good enough to tell you this is the moment to get in, and n o one is kind enough to tell you when it¶s time to take profits and get out. With some 40 years experience trading markets, I can confirm that the old sage is generally correct , but not always. Normally there is no starting signal nor ending signal , that even the slowest like me cannot fail to miss. But ever so occasionally that¶s not true. August 15, 1971 was one such occasion, when President Nixon made the great strategic error of unilaterally imposing fiat currency on the world. The starting bell on the great precious metals bull market was sounded. The great bull market, that with a pause here and there, still continues to this day. Again another story for another day. Another bell was right after OPEC first imposed its will on the world in 1973. Oil, a commodity in ever growing demand, that is ever harder to find replacement reserves, and since 1971 trades in ever depreciating fiat dollars, was also embarking on a multi generational bull market. Yet another, if less clear signal, came when China after the horrors of the Cultural Revolution, repudiated Maoism, and set about logically reforming Maoist society and rejoining the modern world in 1978-79. The entry bell was being rung for iron and steel, coal and copper, for building a modern China couldn¶t happen without all. In the first week of July 2010, China has again rung a bell that signals a new great bull, multi-generational market is starting. China followed up last year¶s warning of coming cutbacks in the export levels of rare earth elements (REEs ) and heavy rare earths (HREs) and announced export cutbacks. Since China supplies the world with 95% to 97% of these vital components of 21 st century life, it¶s is going to have a big impact on price s and the development outside China of alternative supp ly. The new and the latest bull market is just getting underway, which our probable arriving double dip recession will do little to check, merely slowing its advance over the next few quarters, if at all. After watching the rare earths and metals scene for the last few years, the long term entry opportunity has finally arrived. Strangely though, most of the world will let the opportunity pass them by, puzzled by the strange ringing noise they hear, yet don¶t understand. Graeme Irvine. London. http://www.londonirvinereport.blogspot.com/

Copyright: G. Irvine. May be used with attribution.

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