The decline of the rare earth plate is related to the price increase. The rare earth price index recently broke through the high point since 20 12. Before every rise, it fluctuated back and forth in a big box for seven or eight years. This price breakthrough has gone up for seven or eight months, never more than half a year. Due to the impact of overseas epidemics on production capacity, the price of rare earths continues to rise. China implements strict rare earth quotas to control production. In the global supply of rare earths, domestic accounts for 63% and overseas accounts for 37%. The influence of production capacity of both sides leads to the shortage of rare earth supply. Four aspects have greatly stimulated the demand for rare earths.

1. Rare earth is the general name of 17 metal elements in the periodic table, including lanthanides, scandium and yttrium. There are more than 250 kinds of rare earth minerals in nature. Finnish chemist Gadolin was the first person to discover rare earths. 1794, he separated the first rare earth "element" (yttrium soil, or Y2O3) from heavy ore shaped like asphalt. Because few rare earth minerals were found in the18th century, only a small amount of water-insoluble oxides could be obtained by chemical methods. Historically, this oxide was habitually called "earth", so it was named rare earth. According to the atomic electron shell structure and physical and chemical properties of rare earth elements, their symbiotic relationship in minerals and the characteristics that different ionic radii produce different properties, 17 rare earth elements are usually divided into two categories.

2. In the long run, the rise and fall of stock price is determined by the profits created by listed companies for shareholders, while in the short run, it is determined by the relationship between supply and demand. The factors that affect the relationship between supply and demand include people's expectation of the company's profit, artificial large-scale speculation, market capital and policy factors. Value investment depends on whether investors think a stock is undervalued or overvalued, or whether the whole market is undervalued or overvalued. The simplest method is to compare the price-earnings ratio, dividend and yield index of a company with the average level of competitors in the same industry and the whole market. If a company's technical indicators are lower than the market performance, you should ask yourself why. There are usually some factors that you don't understand, such as potential losses, poor management, declining market share, and employee problems.