Cobalt

  • 30 Jan
    There’s Buzz Around Cobalt But Don’t Buy Yet

    There’s Buzz Around Cobalt But Don’t Buy Yet

    • The cobalt hype reminds me of the 2008 uranium and 2011 rare earth element spikes. Both ended badly for investors.
    • The bull case is tempting, but you should always investigate mining costs of junior miners because the cheapest way to get to cobalt is as a by-product, and there are big copper mines that can supply it.
    • Be careful of dilutive capital raises, liquidity issues, and stock liquidity and all other issues that penny stocks have, no matter how attractive the cobalt pitch might seem.

    Introduction

    Many of you might be wondering what’s going on with cobalt as its price has gone up lately which has created an interesting buzz in the financial world.

    On top of it, many mention cobalt alongside sexy names like Tesla (NASDAQ: TSLA) which further increases the buzz.

    Today I’ll shed some light on cobalt in order to see if there is a long term profitable trend forming in its supply and demand, or if it’s just a fad like rare earths, graphite, or uranium were back in their days. More →