Molycorp CEO: There is No Bubble Here

Written By Brian Hicks

Posted December 22, 2010

I’m a bit tired of all the rare earth bubble stupidity…

There is no bubble. There never was.

And thanks to a CEO, forced to eat his own words on national television, more people are finally understanding that.

It’s just another reason to own rare earths here, including Molycorp (MCP), Rare Earth Elements (REE), the Rare Earth ETF, and a small $1.50 play just starting to move in Greenland.

Here’s more on that CEO’s interview… from your free Wealth Wire.

“Molycorp CEO Mark Smith on Tuesday said there isn’t a bubble in rare earth prices and apologized for comments made to the contrary on CNBC two months ago.

“I also don’t think that these short-term prices are things that people ought to be counting on because they are really spiked right now and we think there maybe a form of a bubble occurring because of all of the news and the frenzy that’s occurring,” Smith said on “Fast Money” on Oct. 21.

Seven days later, he told Bloomberg, “I don’t believe there is a bubble … These prices are absolutely sustainable and that’s really based upon the very simple facts of supply and demand.”

So what happened?

“Well, I got a lot smarter, number one. And I learned how to do interviews a lot better,” said Smith, apologizing for what he called an “error.”

“We are absolutely bullish on prices. We think these prices are absolutely sustainable and we think that the simple supply and demand fundamentals support the prices that we are bullish on.”

Read more here.

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