EDITOR: | March 16th, 2014 | 7 Comments

Bitcoins are dead, Rare Earths are ‘alive’ and FDIC vs. Libor to re-build trust for the ‘little people’?

| March 16, 2014 | 7 Comments

“Bitcoins? ‘Smash’ — it’s over for now…” starts Rockstar as he proceeds to ask me why I am not covering more tin plays as he is bull on tin. Obviously, not having read Robin Bromby’s nearly weekly tin updates for the last month (Bolivia to its lithium promise, add that other technology metal — tin), this provides me with an opportunity to explain that Robin will be in France for the next three (3) weeks, on something I have seemingly only read about – a vacation. I turned the conversation to the U.S. Federal Deposit Insurance Corp. (FDIC) attempting to make 17 banks and an industry group accountable over its alleged participation in interest-rate rigging via the London interbank offered rate, known as Libor. I am trying to get Dr. Luc Duchesne to wrap his head around the impact of this lawsuit and to create the algorithm needed to determine how much each of us in North America should receive in compensation to right this inevitable wrong, not to mention…re-establish our trust in capital markets?

Speed-dialed another secret source in the southern States, as it seems everyone will talk to me off the record, and he responded this way: “Look, we knew about the manipulation of Libor 4 years ago, and it’s simple — the big banks were screwing the little banks, and the little banks were screwing the ‘little people’. Finally the regulators are holding them accountable and that’s the gist of the Friday announcement.” He then called me back to add: “Before the financial crisis they had incentive to ‘jack up’ rates, and during the financial crisis they needed to hide what they were paying…they needed to manipulate a lower Libor rate – and in turn, manipulating all of us (or so it is alleged). The bottom-line is that the banks undoubtedly owe everyone in Canada and the U.S. a few grand each.”

Luc just called and we were discussing angles so I asked him if he could try and translate what $800 trillion of loans and securities must look like to us ‘little people’. He said something about derivatives and agreed to do it.

Speaking of series, Jon Hykawy has just joined our quarterback line-up for an all original feature to run on Friday’s. While his take on the uranium market was not the same as mine, I would like to use this moment to reinforce our interest in chasing down the brightest minds to write, interview and record their positions on the various market sectors we cover.

Chris Ecclestone has become one of my favorites as his pieces are somewhat of a Wikipedia meets WSJ on each of the topics he covers. Last week we had a ‘you gotta love lithium’ article that I genuinely enjoyed. Now this is where I discuss Jack Lifton’s video commentary on Lynas and Molycorp that has received a lot of attention — and I stand behind his freedom of speech, and would like to acknowledge that many regard him as a well-established expert and speaker in our industry…

As a Publisher, I cannot get into what I agree with and disagree with every time someone expresses an opinion. What I can do is agree with Zuckerberg this week and say that I do agree that the online universe is riddled with challenges as we have everyone from the US-NSA to Facebook itself collecting all kinds of data on us that if we understood better, none of us would email. So I want to use Jack to say that I absolutely respect the fact that he is willing to go on record with his position.


You want my opinion? Alright…the fact is for all of you that have me ‘at one with Jack’ – let me clarify that I do not always agree. This said he is more pleasant to disagree with than most. I have already told Jack that I see Molycorp* making it because I tend to be more surprised when the money players fall. I assume that with as much money and talent invested in MCP, someone knows how to throw a touchdown? Personally, I was impressed with Mark Kristoff, the CEO for Traxys Group and Board member, and my female intuition says that there is no way that board members like Mark or Constantine Karayannopoulos will not do whatever it takes to make this work. And for anyone else still moaning, Molycorp closed up +3.95% on Friday so one man’s opinion should not be seen as an end all to one’s reality for those that commented to this effect.

For the record, I do not agree with Jon Kaiser’s ‘Super Seven’ nor do I agree with Luisa Moreno’s picks, and I publish their picks and get along with them. Frankly, I think it’s high time we get another Dudley Kingsnorth interview happening…as our audience forgets how strong his opinions are.

That reminds me of sitting across from Eric Noyrez from LYNAS in my board room in December and let me add, I was impressed because he had the courage to come to our office and update his shareholders. I really happen to respect Eric, he’s smart and I deemed him to be a superior leader – he certainly didn’t let me see him sweat. And if you recall, we did a nice piece on Lynas or at least a thoughtful one when the rest of the media was less positive just this week titled: Lynas suffers more losses and needs to secure liquidity . Again, we are on the side of rare earths and want both Lynas and Molycorp to succeed. And if you hear Jack’s ‘big picture’ in his full commentary, he warns investors not to think the market for rare earths are asleep as “…it is very much alive”. I would argue that he has positioned himself as an ardent supporter of the sector too.

Now for the week ending March 14th the REE Leaders Index was down -5.73%, closing at 299.83. The Rare Earths & Technology Metals InvestorIntel members were barely down -1.08%. Thanks in part to Tasman Metals Ltd. NYSE MKT: TAS up +26.77% and TSXV: TSM +24.65% with no news, but Alessandro Bruno did a nice update on the 10th with Tasman Metals is the key to Europe achieving a rare-earth supply chain. Peak Resources Ltd. ASX: PEK up +12.50% (again) and Star Minerals Group Ltd. CSE: SUV rose another +9.09% for the week ending on the 14th.

The Graphite & Graphene InvestorIntel members were up +5.53% thanks in part to a splendid response from shareholders to the new potential Graphite Zones Identified at Balama North Project on Friday announced by Triton Minerals Limited – ASX: TON +42.86%.

Zenyatta Ventures Ltd. TSXV: ZEN up +8.03% and OTCQX: ZENYF up +7.21% on no news, but the interview I posted with Dr. Conly confirming Zenyatta’s graphite deposit is ‘special and rare’ had 600+ views in less than 24 hours — everyone can always use more ‘ZEN’*…

Speaking of an excellent interview, Frontier Rare Earths’ (TSX: FRO) James Kenny had a great response to his position on the many major rare earth debates such as the market difference between light and heavy rare earths (LREE vs. HREE), the US Energy department’s ‘critical elements list’, Chinese rare earths overcapacity and potential massive rare earth resources in North Korea and elsewhere that might reduce overall prices – that received a good response.

Finally, in spite of our excellent coverage of IC Potash Corp.’s filing of their Filing of Feasibility Study for the Ochoa Sulphate of Potash Project and our translation of their news out at the beginning of the week in a feature titled — IC Potash’s SOP (sulphate of potash) to be the world’s cheapest to produce…the Agribusiness, Potash & Phosphate members were down -6.62%. I have to believe that hard work and good news pays off, so perhaps this was some kind of stock deviation that will get corrected next week?

Intriguingly Gold, Base & Precious Metals flat-lined, but after we get the results of the Crimean referendum vote – and if it goes the way the exit polls suggest…if Russia secures the mandate to assist Crimean secession from the Ukraine…this is the kind of geopolitical action depending on how the global capital markets translate it — affects gold prices.

*Disclaimer: I am not a licensed investment advisor and I am not making any buy or sell recommendations.

Tracy Weslosky


An accomplished entrepreneur Tracy Weslosky is the CEO for InvestorIntel Corp., a company that publishes InvestorIntel.com, a trusted source of online market information for investors ... <Read more about Tracy Weslosky>

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  • Joe


    Thank you for your earnestness and for all that you do to shed light on the dark corners of the REE industry. Indeed free speech is a beautiful thing and I consider it a great privilege to hear the various opinions of so many significant players in the industry, which you lay out on a platter for us on this website. For what it’s worth (from a non-expert individual investor) I agree that MCP will make it, and in fact one of my favorite commentators on the subject is Michael Roat. I’m not sure what his credentials are exactly, but he is knowledgeable and more importantly logical. It would be great if you could get him for an article or an interview. It would be amazing if you could organize a video debate between him and Jack Lifton; now that, I might pay for.

    March 16, 2014 - 9:18 PM

  • Tracy Weslosky

    Thank you for your commentary and idea surrounding Michael Roat. We are always seeking excellent sector analysts and writers to comment.

    This said, I would prefer to get Gareth Hatch back on board…

    March 17, 2014 - 7:24 AM

  • Dave Glover.

    Thanks for your candor and frankness especially at a time when Powers that be don’t have the capacity for Truth. Telling it like it is is a Cornerstone for InvestorIntel and I for 1 commend you for standing up for your principles. Values so often today are found only in Fortune cookies. As for the rigging scandal we’ve only seen the tip of this massive Burg This is the kind of Rigging,Breach of Trust and Fraud the Little guy has come to Expect from Banks & their boards. We all played Monopoly growing up, it’s just that in the real world the Banks provide the “Inside Track” to those with the real Wealth. Those 65 people who hold 2/3’s of Global wealth. Buy physical Gold & bury it Deep & safe is the newest call to Arms.
    Thank you for giving we readers the heads up sso that we might pass Go & collect our $200.

    March 18, 2014 - 1:56 PM

    • Tracy Weslosky

      Thanks Dave, I genuinely appreciate your feedback as I know you are particularly savvy on business and politics. Here’s what I think — the numbers are SO BIG that the media cannot even begin to comprehend or explain this. In fact, is it really a crime when it is this large? This is why I handed it to Dr. Luc Duchesne…figured if anyone could calculate a financial remedy, he could. He based his remuneration model on the entire global population at securing 2k each to right this wrong. We should probably not spend it yet since it took 4 years for the FDIC to probably prepare this paperwork…talk about employing law firms in several cities for the next few years.

      March 18, 2014 - 8:06 PM

  • Dan

    Tracy, hopefully you can get a follow up conversation with Dudley. I am sure I am not alone.

    March 18, 2014 - 3:49 PM

    • Tracy Weslosky

      Thanks Dan – I sent Dudley a note this evening, but I need to call him. He will undoubtedly love the Ecclestone piece on XENOTIME — The one word you should know for investing in rare earths is Xenotime http://shar.es/R9kQN…..

      March 18, 2014 - 8:02 PM

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