Forget Gold - What About Cobalt? Indium?

Just when you think you’re hip to the hard assets scene, along comes a new revelation that opens up a whole new market.

Consider this article from The Economic Times, which covers a Minor Metal Trade Association conference in Estonia. Minor metals? Estonia? Need I say more?

The article focuses on a handful of (mostly) New York-based hedge funds which are turning their back on gold, silver and copper and moving on more arcane metals. Cobalt is on the top of the list: cobalt plays a major role in making batteries, and soaring demand for hybrid cars is pushing cobalt prices to the moon. Cobalt is currently sitting at 11-year highs of $30/pound, and one Credit Suisse analyst said recently that they could go to $40. Just a few months ago, cobalt was fetching just $16/pound.

Cobalt isn’t the only metal attracting attention, however. Induim, vanadium, antimony and more all have their supporters. If you’re interested, the Mining Journal Review keeps tabs on 24 minor metals in its monthly reports.

There are currently no futures contracts for these metals, and no real way for the average investor to play the space. The London Metal Exchange is talking about launching minor metals futures contracts, however, so someday, you too could take up trading in rhenium and tellurium.

In the meantime, most of us will stick with gold, silver, copper and nickel.

Comments

[Joe Rotger:]

Amen.

2007 May 01 09:45 AM

[Mark Anthony:]

You are absolutely correct that tellurium investment could be a good idea. See the latest Seeking Alpha article on the relationship between tellurium and First Solar (FSLR):
www.seekingalpha.com/a...

I am helping Joe to fix a link above:
thefountainhead.typepa.../

2007 Nov 24 03:30 AM