# Lithium



## tim5371 (Apr 5, 2016)

What do you guys think of investing in Lithium miners?
Stocks like Nemaska Lithium NMX.V have been MOVING!

Could there be a bubble developing or is this legit?


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## LBCfan (Jan 13, 2011)

I've picked SQM as my lithium play. It's also my ag play as it's got a lot of potash and a bit of nitrate.


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## Kropew (Nov 24, 2013)

As far as im concerned, the lithium euphoria is another bubble. While it is most likely true that the demand for lithium is going to rise in the years to come, lithium mining is controlled by four big players and those players should be able to meet the new demand without too much difficulty. 
Bloomberg has recently reported that ‘If all current lithium projects proceed as planned, they would deliver about 330,000 tons of lithium carbonate-equivalent by 2020, creating “a bit of an oversupplied market,” according to Citigroup.’
The existing oligopoly will mainly benefit from the new demand. New mining ventures could be eventually bought by a big player (if it becomes somewhat of a threat to the oligopoly) but who knows which one?
Trying to ride a bubble is one thing, but don't fool yourself, buying shares in a lithium mining venture is no investment, it's pure speculation.


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## GizelleGizelle (Jun 10, 2016)

tim5371 said:


> What do you guys think of investing in Lithium miners?
> Stocks like Nemaska Lithium NMX.V have been MOVING!
> 
> Could there be a bubble developing or is this legit?


Lithium investment became a very popular alternative one. Lithium batteries are highly demanded at automobile and electronics industries. They are used in elecrtonic vehicles, like Tesla, which are expected to take over in the nearest 10 years. For the last year the investor interest in this sector has been super charged. I think it's a very legit investment for the long run


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## Kropew (Nov 24, 2013)

GizelleGizelle said:


> Lithium investment became a very popular alternative one. Lithium batteries are highly demanded at automobile and electronics industries. They are used in elecrtonic vehicles, like Tesla, which are expected to take over in the nearest 10 years. For the last year the investor interest in this sector has been super charged. I think it's a very legit investment for the long run


I'm curious as to how you suggest to get your exposure to lithium considering the fact that you can't directly invest in it (lithium is not traded in any commodity or futures exchange)?


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## bgc_fan (Apr 5, 2009)

Kropew said:


> I'm curious as to how you suggest to get your exposure to lithium considering the fact that you can't directly invest in it (lithium is not traded in any commodity or futures exchange)?


There are a number of lithium mining companies that you can try your luck with. As well, Pure Energy was tapped by Tesla to partner as a lithium provider.


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## GizelleGizelle (Jun 10, 2016)

Kropew said:


> I'm curious as to how you suggest to get your exposure to lithium considering the fact that you can't directly invest in it (lithium is not traded in any commodity or futures exchange)?


You invest in the production of lithium batteries, which are used in electric devices and now even electric cars (Tesla)


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## Kropew (Nov 24, 2013)

bgc_fan said:


> There are a number of lithium mining companies that you can try your *luck* with. As well, Pure Energy was tapped by Tesla to partner as a lithium provider.


You said it right


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## MrMatt (Dec 21, 2011)

Kropew said:


> As far as im concerned, the lithium euphoria is another bubble. While it is most likely true that the demand for lithium is going to rise in the years to come, lithium mining is controlled by four big players and those players should be able to meet the new demand without too much difficulty.
> Bloomberg has recently reported that ‘If all current lithium projects proceed as planned, they would deliver about 330,000 tons of lithium carbonate-equivalent by 2020, creating “a bit of an oversupplied market,” according to Citigroup.’
> The existing oligopoly will mainly benefit from the new demand. New mining ventures could be eventually bought by a big player (if it becomes somewhat of a threat to the oligopoly) but who knows which one?
> Trying to ride a bubble is one thing, but don't fool yourself, buying shares in a lithium mining venture is no investment, it's pure speculation.


More recent article on Bloomberg says 460,000 tons. That's more than double production today. I don't see demand picking up that fast.


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## hollyhunter (Mar 10, 2016)

NEMASKA LITHIUM INC (NMX.V) From the relationship between price and moving averages; we can see that: This stock is NEUTRAL in short-term; and BULLISH in mid-long term.


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