Lastly, Gholz points out that China’s export limits were not fully effective as small Chinese producers found a way to smuggle some rare earth metals out of the country.

“The global economy constantly moves and adjusts, investing in supply diversification and innovation to alleviate potential bottlenecks,” Gholz said.

Market Vectors Rare Earth/Strategic Metals ETF

For more information on rare earths, visit our rare earth metals category.

Max Chen contributed