Gadolinium -Soared 675% in a year - Market Case Study

Gadolinium - Symboled Gd is a rare earths element , its silvery white with a metallic shine element. In nature it can be found in rare minerals as monazite and bastnasite, but never as a free element.


Gadolinium Usage

While was discovered in 19th Century , this metallic element was not used much until relatively recently. Today, gadolinium is used in manufacturing appliances and computer hardware, metalworking and medical imaging.

• Appliances. Gadolinium is used in making certain parts of microwaves and phosphors for color televisions.
• Computer hardware. Gadolinium compounds are used in making computer memory chips. Other related gadolinium applications include its use in manufacturing compact discs.
• Metalworking. Gadolinium can be alloyed with chromium, iron and several other metals to improve their workability and resistance to high temperatures and oxidation.
• Medical Imaging. While the best known medicinal application of gadolinium is its use as a contrast agent during MRI/MRA scans, it is also used in other imaging studies. For example, gadolinium is used in X-ray imaging and positron emission tomography (PET) studies.

Gadolinium Market Prices- 675% in one year

Gadolinium prices saw a significant rise this year , Currently a 99% pure Gadolinium metal is sold around 155.00 USD / KG , for a comparison Year ago it was sold for 20 USD / KG , this a annual Change.

Gadolinium price chart

Investing in Gadolinium

Lynas ( OTC : LYCNF) : reported less than a 1% of Gadolinium in ore breakdown of Mt Weld project.

MolyCorp ( NYSE : MCP ): reported a 0.2% of Gadolinium in ore breakdown of Mt Pass Mine project.

Avalon Minerals (NYSE : AVL): reported existence Gadolinium in ore breakdown of Thor Lake project.

Rare Element Resrouces ( NYSE : REE ): reported existence Gadolinium in ore breakdown of Bear Lodge project.

Quest Rare Minerals ( TSX-V: QRM ): reported existence Gadolinium in ore breakdown of Strange Lake project.

Rare Earth Market - 5 Companies Poised to be Decade's Key Players

Though China is the dominant market player of the Rare Earths controlling over 95% of the REE export , An overwhelming global demand plus Chinese environmental regulation & export restrictions driving this dominant REE exporter to become an Importer of the REE as its local market demand for REE is on a raise over the past decade.

Emerging Rare Earths companies outside China poised to become a key market suppliers of the REE for the next decade ( both Heavy & Light REE )  cracking the Chinese export monopoly.

In Addition ,  recent studies  forecasts a significant raise in the prices of REE for the coming years adding the fact of a proven large amounts of REE in their pits those companies are hot investment targets.

Here is review of the Rare Earth's key companies and their current stage:

Molycorp (NYSE: MCP) 

Market Cap :$6.06B 

Main Operation : USA  

Company Stage : Production and Expanding.

Lynas ( OTC: LYSCF )

Market Cap : $3.97B 

Main Operation : Australia 

Company Stage  : Under Construction - ETA 2012

Rare Element Resources ( NYSE: REE ) 

Market Cap : $622.97M

Main Operation : USA

Company Stage  : Prefeasibility.

Avalon Rare Metals ( NYSE: AVL ) 

Market Cap : $814.04M

Main Operation : Canada

Company Stage : Feasibility.

Quest Rare Minerals ( CA: QRM) 

Market Cap : $423.54M

Main Operation : Canada

Company Stage  : Feasibility.