James Clapper, U.S. director of national intelligence, points out that China holds a monopoly over rare minerals. Rare earth prices spiked after China enacted a 40% export quota cut in July 2010 and peaked at record highs in mid-2011, LiveScience reports.
“As of December 2012, REE prices had receded, but still remained at least 80 percent, and as much as 600 percent … above pre-July 2010 levels,” Clapper said.
Market Vectors Rare Earth/Strategic Metals ETF
For more information on rare earth metals, visit our rare earth metals category.
Max Chen contributed to this article.