Are Rare-Earth Metals Back in Vogue?

With Molycorp (NYSE: MCP  ) crushing analysts' estimates for the last quarter, you must consider whether the once-beloved stocks of the rare-earth industry are ready to run again. Over the last few weeks, Molycorp has outperformed its peers in the precious metals markets, including both the SPDR Gold Trust (NYSEMKT: GLD  ) and the iShares Silver Trust (NYSEMKT: SLV  ) . Even Silver Wheaton (NYSE: SLW  ) has lagged the rare-earth metal standard-bearer.

MCP Chart

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In the video below, Fool.com contributor Doug Ehrman discusses Molycorp's recent operating results and why the company thinks that the rest of the year may be more favorable than the Street does.

If you are looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, then Silver Wheaton provides a unique play on the future of silver. SLW chooses to finance the mining of silver; it has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.


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