What $10,000 Invested in USA Rare Earth 1 Year Ago Is Worth Today
2026-10-11 18:03
•Steven Porrello •The Motley Fool
•• ••• Axe Cap view
USA Rare Earth’s Steep Slide: What South African Investors Should Learn
Investors who bought USA Rare Earth a year ago have seen nearly half their money vanish, underscoring rare-earth mining’s tough realities.
USA Rare Earth’s near 50% fall over the past year is a sharp reminder that mining critical and rare minerals isn’t for the faint-hearted. The initial hype—fueled by hopes of US-China tensions accelerating US mineral independence—fizzled as trade talks improved, delaying urgency and exposing how capital intensive and complex this business really is. For South African investors, this suggests caution about jumping into stocks chasing geopolitical narratives without solid, immediate fundamentals. Globally, this points to better candidates like Rhino Resource Partners or diversified ETFs to soften risk. Locally, companies like AngloGold Ashanti or industrial groups remain safer bets, given their established operations and cash flows. Keep an eye on USD/ZAR too; a weaker rand might make foreign mining investments pricier, while stronger iron ore or gold prices could help domestic miners. We’d watch rare-earth mining plays from afar rather than dive in with both feet. This story reminds us that not all ‘strategic minerals’ stocks are created equal. this is just our opinion and not financial advice
Avoid direct investment in USA Rare Earth for now. Instead, consider diversified exposure via global ETFs or stick to solid JSE miners like AngloGold Ashanti. Monitor USD/ZAR, as currency swings will impact returns on foreign exposure.
- USA Rare Earth (USAR)
- REMX ETF
- AngloGold Ashanti
- USD/ZAR
- Renewed US-China trade tensions lifting price expectations prematurely
- Sudden rand weakness increasing foreign mining investment costs
6/10
USA Rare Earth stock has declined significantly over the past year, with a $10,000 investment from October 2025 now worth approximately $5,300—a 47% loss. The stock peaked last October amid geopolitical optimism and federal support prospects, but enthusiasm faded after a U.S.-China trade truce and as investors realized the substantial capital requirements for the company's mine-to-magnet ambitions. The author recommends rare-earth ETFs over direct investment in USA Rare Earth.
Our take is based on reporting first published by The Motley Fool.