We featured cobalt and lithium several times this year. Both our cobalt forecast 2021 and our lithium forecast 2021 were very bullish. Moreover, we followed up on both commodities since we wrote our forecasts particularly to point out that both commodities are going through price inflation. The latest and greatest price charts confirm their uptrend, and suggest the party only got started.
We’ll focus only on the price charts of cobalt and lithium.
Cobalt is the first one, and we feature price chart from TE (+8 year chart).
The giant spike in 2017 catches the attention presumably.
However, as we look at this chart, our attention goes, first and foremost, to the bullish reversal that got started in the first week of January. And it just got started, there is plenty of upside potential! That’s what catches our attention, and it makes us super-bullish on this sector.
The lithium price chart doesn’t have as much history, but the concept is the same: big spike in 2017, decline since 2018, a bullish reversal started in 2021.
In other words, plenty of upside potential … and presumably they are set to become (among) the most bullish commodities of 2021.
It is not easy to play these sectors, especially cobalt mining stocks are rare. They are also mostly small, and trade in Australia. On January 8th, 2021 (source, only available for premium Momentum members) we featured a cobalt stock to our Momentum Investing members, it’s a small cap in Australia. We believe this has multi-bagger potential, and it’s not too late to enter.
When it comes to lithium miners there is more choice, also on US exchanges.
In our Momentum Investing portfolio we track commodities closely. We took a position in a lithium miner, and realized 26% profits in the month of January. We expect the ongoing retracement to end soon, and we feature on top lithium miner in our weekend updates available to premium members. Moreover, we initiated a position into a vanadium / rare earth miner on the TSX exchange which is trading right below our entry price, not too late to enter. For all these miners (cobalt, lithium, rare earths) we believe 2021 will be the year to buy-hold-wait-enjoy.