It might be nearly impossible to forecast graphite prices in 2022. Our must-read piece Which Is The Biggest Investing Opportunity Of This Decade helps us understand that a supply deficit in green battery metals like graphite is underway. Graphite stocks are known to be wildly volatile. They can rise like crazy, but when they decline they tend to fall scarily deep. With this disclaimer in mind we are going to forecast at least one wildly bullish graphite stocks period (cycle) in 2022. This implies that a downturn can reasonably be expected, so taking profits is healthy. It also implies that spotting a great entry point is going to be the challenge for graphite stocks in 2022. Along with this, finding the right graphite stocks is going to be the other challenge.
A bullish graphite price forecast for 2022
Graphite prices are not easy to track.
In essence, there is no spot market for graphite. It is a pretty cluttered space, with different types of graphite each nominated with a different price. To illustrate this we look at this Asian graphite price overview. Mind the scroll bar at the right which indicates the diversity of graphite types and according prices.
Looking for graphite price charts is pointless. This is one of the few charts that shows an evolution of (one of) the graphite price(s). All we can say is that we can see a long term uptrend even though this is not a great conclusion we can work with.
Graphite forecast 2022 and beyond: supply deficit
Graphite price analysis is nearly impossible as per the point made above.
The only thing we can do is look at supply/ demand dynamics to try to forecast a path for 2022 and beyond.
A supply deficit is underway is what we conclude after compiling a few charts.
First, this projection shows several types of graphite and their consumption in rechargeable batteries.
Moreover, as explained in Which Is The Biggest Investing Opportunity Of This Decade the battery boom is going to suck all available supply of metals like graphite out of the ground.
And here is another chart that leads to a similar conclusion.
All this makes sense once you realize the weight of strategic metals in Electric Vehicles compared to conventional cars. Knowing that the number of EVs is going to grow 100-fold this decade you’ll understand how big this mega trend in strategic metals like graphite is going to be.
The next infographic looks at deficit. Graphite will be one of the green battery metals with the highest deficit.
Graphite stock investing
Investing in graphite stocks is not easy. That’s because of two reasons:
- There are many graphite stocks that have no idea how they ever will be producing graphite (at economically acceptable conditions).
- There are many management teams from graphite stocks that are in business to do one and only one thing: fill their own pockets.
It’s a dangerous place. Many graphite stocks are money losing machines. They can get away with it as they are small or nano caps (not a lot of analysts pay attention to their practices). During a graphite stock bull run they sell massive amounts of their shares and also raise capital by issuing new shares.
One example of a serious graphite stock that trades in Australia is Ecograf. It is a small cap but it is really different than the majority of other graphite stocks out there.
This becomes clear by just looking at the chart. As per our 7 Secrets of Successful Investing it is a beauty, pure beauty. Beautiful investments do matter as explained in Investing Secrets: Beauty Results In Profitable Investments.
That said, other than the chart validation and characteristics there is also the fundamentals of this stock along with the business activity that clearly shows that this is the ‘real deal’.
Note that this chart comes from a top selection of green battery metals top stocks which is available to all Momentum Investing premium members. This list contains the very best green battery metals stocks in the world, by far, based on a thorough research of 700 to 900 green battery metals stocks by by InvestingHaven’s research team.
Graphite stocks forecast 2022 and beyond
We mostly don’t feature individual stocks in our work. We will certainly never feature individual stocks in any of our annual forecasts.
We can give some guidance to readers as it relates to graphite stocks investing in 2022 and beyond.
Our graphite stocks forecast for 2022 has a few components and tips:
- We believe there is a secular bull market in graphite stocks that will run throughout most of this decade.
- On a year by year basis we expect a typical cyclical evolution: powerful bull runs which are followed by good selling. The key is that those support levels hold.
- 2022 will have at least one bull run, if not two.
- Be extremely careful picking graphite stocks.
- Most graphite stocks are not worth your time nor capital.
- The graphite stocks with prospects of becoming a producer before 2025 (well capitalized) are the ones that will be the most juicy stocks to hold.
And here comes another green battery metals #greenbatterymetals forecast for 2022: graphite stocks will have at least one wild bull run but be very careful as most #graphite #stocks are not worth your time nor #capital. Click To Tweet
In our Momentum Investing service we identified green battery metals as the powerful bull market of this decade. We are heavily invested in green battery metals. Our green battery metals stock list features the best stocks, all available to members of the service. Returns in those stocks so far have been phenomenal, even in a year like 2021 which has proven to be extremely challenging for the vast majority of market participants.
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