Investing in Lithium?

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  Kangal on 29/08/2017 - 16:26

  +5

  If you don't know, then don't do it, simples.

  If you want the right answer, you're going to have to do your homework and come up with your own solution.
  However, I should tell you investing in Lithium is not good. Instead, invest in companies that are using Lithium, as they are more likely to get bigger gains.
  Remember, back in the early 2000's everyone thought Lithium was going to be this great thing to invest in like Silver.
  It didn't pan out… not for a lack of applications, we did have a lot of gadgets, gizmos, craptablets, laptops, and cell phones.
  ….that part hasn't changed. We probably would have a greater demand with eCars, iCars, and Home Batteries.

  So if you're interested, look into Tesla (their Gigafactory) and look into Panasonic (Eneloop stock)… they're more poised to increase or decrease. Or, you know, bikies.

  • 

    Ahbal on 29/08/2017 - 18:00

    Thank you for the well explained response. Your point about investing into the companies such as Tesla instead of the element itself makes a lot of sense. I'll certainly tell this family member about such companies and have them look into it. They also will be/have been doing a lot of research/homework first, however again they aren't too internet savvy so I decided to help out a bit.

    Note: With your mention of eCars and iCars is also what got this family member interested in it. They theorise that since these vehicles are on the rise from multiple manufacturers, that the price "should" go up in due time. Do you think this makes sense and is plausible?

    • 

      Kangal on 29/08/2017 - 23:35

      It's better to actually let the price start rising, and then, invest.
      Why?
      After the stock shows potential to grow, it is a safer bet. On top of that, there is a hive mentality.
      So when you do start investing on something with potential, and on the upswing, you'll find out the investment wave is probably longer than you expected because like-minded people will also start buying up shares.

      So I suggest let the people in front be the guinea pigs/beta testers.
      They're taking the bigger risk. Let them.
      You might have some regrets in the future "why didn't I join earlier"… but let me say that's a much better regret than having "why did I blow all my money on this".

      …with that said, I wouldn't invest in electricCars or intelligentCars yet… let the market grow, and join the upswing.
      Regardless what people preach, it is still in the early days for this sort of stuffs. I-C-E and oil are not going anywhere, anytime soon.
      But seriously, this is cut-throat business…. and you really have to do your homework here.

      • 

        Ahbal on 30/08/2017 - 15:01

        Thank you for another well explained and in depth response. You test idea makes a lot of sense and is certainly the smartest way to go about this. I will tell them to keep research and pass on the rest of your info to them. As well as telling them to do even more research whilst keeping their eye on the market.

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  ToastySteve on 29/08/2017 - 16:28

  I'm not too in the know about lithium as an investment, but my accountant got in about 18months ago and has just cashed out recently. Did very well for himself.

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  whooah1979 on 29/08/2017 - 16:28

  The specific nature of this investment is in Australian lithium, which apparently will have a lot of production next year

  lol. looking to cash in?
  http://www.abc.net.au/news/2017-07-07/sa-to-get-worlds-bigge…

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  trustnoone on 29/08/2017 - 16:32

  I know nothing at all in this either, my guess is that lithium is based on the battery market (LIPO?) and that people are expecting a growth due to the increase of electric cars and tesla? Plus technology increase (more phones etc) meaning more people wanting more rechargeable batteries? Just a shot in the dark anyway.

  • 

    Ahbal on 29/08/2017 - 18:01

    Yes that is the exact reason they want to invest in it. Theorised growth due to electric/smart cars and such.

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  TheBilly on 29/08/2017 - 16:47

  +2

  Invest in things that give you an on-going return. While there is nothing bad about investing in items such as gold, lithium, coal etc. You "theoretically" only make money if the item goes up in value and then you sell. You can make millions doing this, but then there are better options to "gamble" on per se.

  Now, if you invest in lithium, the only way you are going to make money is if it goes up in value. But as others have said if you invest in a lithium based business (shares) you will make money potentially through increase in value and also dividends if the company has forecasted any.

  • 

    Ahbal on 29/08/2017 - 18:02

    That definitely makes sense, thank you for your post. I will relay this information to them.

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  carlJack on 29/08/2017 - 17:19

  Got in last year. Still waiting for it to go up.Not sure whether its a good decision or not. My suggestion is that you only invest if you dont mind losing.

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  Ahbal on 29/08/2017 - 17:55

  Thanks for the solid feedback/advice so far everyone, I greatly appreciate it! I will relay this information to the family member in question.

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  retiredfeline on 29/08/2017 - 18:05

  +1

  I'm gonna invest in ions. Ions are everywhere. :)

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  pennypincher98 on 29/08/2017 - 19:43

  +1

  I would rather invest in eneloops than Lithiums, they last longer :)

  (Don't hate :P)

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  Switchblade88 on 29/08/2017 - 20:10

  Bitcoins & cryptocurrencies.

  The -research- required to assess it as an investment is equal to other assets for capital gains (like gold and silver), but the growth is inevitable due to the hard limit of 21 million bitcoins available and the benefits of decentralised trust.

  If you ignore the massive short-term volatility, and aim to hold for several years, you will benefit - but this is where you must do your own research to prove that what I say is true…

  • 

    Ahbal on 29/08/2017 - 20:13

    Yes I have read about bitcoins and in particular Ethereum. I wanted use my gaming rig to "mine" ethereum when it started to rocket up, however power costs in Aus are much higher than in the U.S (apparently 5x as much on average?). Investing without mining was something I've considered but of course requires a lot of research.

    Thanks for the post. Oddly enough I completely forgot about cryptocurrencies (yeh…my memory is like that).

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  spychiatrist on 29/08/2017 - 22:36

  Google ADV ASX and decide for yourself

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  coin saver on 30/08/2017 - 13:45

  "The specific nature of this investment is in Australian lithium" What will happen to prices if Bolivia floods the market? Bolivia holds between 50-70 per cent of the planet's lithium.

  • 

    Ahbal on 30/08/2017 - 15:02

    Really? I will pass this on to them, thank you. It is a good point.

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  Shame on 30/08/2017 - 13:54

  Lithium is a great drug. Invest as much as you can in it.

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  7hours 44min ago on 01/09/2017 - 15:12

  Are you getting a 9m or 12m? I have a 12m DNA and considering a newer model.