{"id":30149,"date":"2012-06-10T20:00:08","date_gmt":"2012-06-11T00:00:08","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/06\/why-graphite-is-one-of-the-few-places-for-savvy-investors-to-make-money\/"},"modified":"2012-06-10T20:00:08","modified_gmt":"2012-06-11T00:00:08","slug":"why-graphite-is-one-of-the-few-places-for-savvy-investors-to-make-money","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/06\/10\/why-graphite-is-one-of-the-few-places-for-savvy-investors-to-make-money\/","title":{"rendered":"Why Graphite is One of the Few Places For Savvy Investors to Make Money"},"content":{"rendered":"

By MoneyMorning.com.au<\/a><\/strong><\/p>\n

May was quite simply a nightmare month for investors. <\/p>\n

The ASX200 lost 7.3% in a month<\/u> – its worst result in 2 years. Half the market is still shell shocked. So this Queen’s birthday long weekend gives us a welcome breather.<\/p>\n

<\/span><\/p>\n

With the good ship China creaking and groaning as it decelerates, resource stocks were some of the worst effected. The ASX300 Metals and Mining index (XMM) lost 12%.<\/p>\n

Most hedge funds lost money. Despite clever trading strategies, the average hedge fund lost 1.6% in May according to analysts Hedge Fund Research Inc.<\/p>\n

So with this backdrop, it was a very unlikely time for my latest Diggers & Drillers<\/em> tip to gain 154%<\/strong> during the month…<\/p>\n

Those readers who bought this stock saw the share price more than double in just 2 days, on the back of incredible drilling results. And this happened just as the market was going through its worst few days of the month. <\/p>\n

Frankly there are very few places<\/u> to make money in this market right now.<\/p>\n

So it’s very satisfying to help readers more than double their money – particularly when the rest of the market is going down in flames. Putting opportunities like this in front of my readers is what gets me out of bed every morning. <\/p>\n

This sector, which is still making investors money now, is graphite<\/strong>. <\/p>\n

After May, the ASX200 is now right back to where it started the year. <\/p>\n

That’s a big fat ZERO percent gain for the Aussie market. <\/p>\n

In stark contrast, graphite stocks have had an incredible 2012 so far: <\/p>\n

\"graphite<\/div>\n<\/p>\n

The ranks are growing too. In just the last month, we’ve seen stocks like Kibaran appear on the radar. <\/p>\n

This is what happened on the Canadian resource market. There is so much money to be made in graphite that the number of graphite stocks tripled in the space of a year. Some huge gains are being made by jumping on the stories at the very start. <\/p>\n

But why<\/em> is the graphite sector booming at a time like this?<\/p>\n

In short – the opportunity has been quietly building for a few years. But the market only spotted it this year. <\/p>\n

The graphite price has been rising strongly for a while. In fact, between 2008 and 2012, high quality graphite tripled<\/u> in price. The price is still rising now as demand increases faster than supply. <\/p>\n

Graphite Price Quietly Tripled<\/h4>\n

<\/center><\/u><\/p>\n

\u00a0<\/p>\n

\"Graphite<\/div>\n

<\/p>\n

Source: Northern Graphite Company<\/div>\n

<\/em> <\/p>\n

But the whole time the price was rising, no one seemed to be watching.<\/p>\n

Then word got out a few months ago, and travelled quickly around the market. The price of graphite stocks are now making up for lost time.<\/p>\n

It’s not simply a supply and demand story though. <\/p>\n

Graphite is a ‘strategic mineral’, which means the supply is unreliable and prone to disruptions…<\/p>\n

Graphite – Nearly All of it Comes From China<\/h4>\n

<\/center><\/u><\/p>\n

\"Graphite<\/div>\n

\n\u00a0
\n<\/p>\n

Source: Libertas<\/div>\n

<\/em><\/p>\n

People are being very quick to brush graphite off as a bubble. The quick assumption is that it is ‘the new rare earths’. Some similarities are there: both are obscure strategic minerals, both are controlled by China, and both sectors went off like a rocket. <\/p>\n

There is one very important difference. <\/p>\n

There are different types of graphite, and the type of graphite investors are after is ‘flake graphite’. This makes up about a third of the market, and has the highest demand growth. <\/p>\n

And when it comes to flake graphite – China has very little of it. China is in fact an IMPORTER of the stuff. <\/p>\n

Rare earths prices have soared and then crashed as China kept changing its rare earths export policies. <\/p>\n

But flake graphite’s current price rally has nothing to do with Chinese policies<\/u>. <\/p>\n

This is important because it means China hasn’t got the power to bring the price back down again, as it did with rare earths. <\/p>\n

China’s power over rare earths prices was the key reason I side-stepped the whole rare earths frenzy a few years ago, and never tipped any rare earths stocks in Diggers and Drillers<\/em>.<\/p>\n

In direct comparison, the flake graphite price rise is not at the mercy of Chinese policy, and so is far more sustainable. <\/p>\n

So I think those dismissing graphite as the latest hot commodity will be very surprised at just how long this graphite stock rally will run for. <\/p>\n

And also just how much money savvy investors will make from investing in the right graphite stocks. <\/p>\n

Dr. Alex Cowie
\nEditor, Diggers & Drillers<\/strong><\/p>\n

Related Articles<\/em><\/strong><\/p>\n

Market Pullback Exposes Five Stocks to Buy<\/a><\/p>\n

This ‘Strategic’ Minerals Stock Has Just Doubled: What to Do Next<\/a><\/p>\n

Europe’s Energy Resource Puzzle<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nWhy Graphite is One of the Few Places For Savvy Investors to Make Money <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au May was quite simply a nightmare month for investors. The ASX200 lost 7.3% in a month – its worst result in 2 years. Half the market is still shell shocked. So this Queen’s birthday long weekend gives us a welcome breather. With the good ship China creaking and groaning as it decelerates, resource … <\/p>\n

Continue reading “Why Graphite is One of the Few Places For Savvy Investors to Make Money”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-30149","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/30149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=30149"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/30149\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=30149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=30149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=30149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}