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Rare Earth ETF Falls Amid Low Demand

The exchange-traded fund that is benchmarked against the prices of rare earth metals declined on Wednesday.

The exchange-traded fund (ETF) that is benchmarked against the prices of rare earth metals declined on Wednesday, ETF Trends reports. The Market Vectors Rare Earth/Strategic Metals ETF dropped as Molycorp shares fell more than 20 percent on news of a downgrade amid declining demand for rare earth metals.

JP Morgan Chase & Co. downgraded its outlook on Molycorp to neutral from overweight and lowered its 2012 year-end price projection owing to a “lack of clarity” on the effects of speculative purchases on rare earth prices. The Industrial Mineral Co.of Australia also lowered its estimate on rare earth demand.

Click here for the story from ETF Trends.

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