From the Daily Mail. Share picks for the cautious and the brave for 2022: As investors eye an anwkward year ahead, we ask three experts for their stock ideas.
For the brave: Cadence Minerals (28p)
This is a riskier investment as it is not just a corporate story but involves politics as well. Cadence (formerly known as Rare Earth Minerals) is not a mining company but bears more resemblance to an investment trust made up of rare earth mining companies.
Rare earth minerals are in high demand but are often difficult to extract. Sometimes this is due to geology, but more often because of geography. Often they are from developing nations with poor infrastructure alongside an unreliable political backdrop.
The largest deposits are in China, and having your investments reliant upon the Communist party there may not be the best position for your portfolio. Cadence reduces risk by giving you a basket of rare earth mining companies and most of its assets are outside the direct clutches of the Chinese authorities directly.
One is in the Czech Republic, where Cadence has a significant holding in a lithium mine. This is a longer-term investment. Success will come if the portfolio companies show their mines are money makers and not just money pits.
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