Molybdenum: Best Metal of the DecadeBefore the global economic meltdown, molybdenum was one of the best-performing base metals.
Prices soared over 1,700% in five years between 2000 and 2005.
A little over two year ago, molybdenum prices were still trading at a steady high of about $35 per pound. But as the financial crisis softened demand for molybdenum, prices have been discounted to nearly $15 per pound.
Nevertheless, analysts worldwide believe that this minor metal is headed for a strong rebound.
That's because molybdenum is no ordinary metal...
Molybdenum — or moly for short — has the sixth-highest melting point of any element and is one of the least corrosive metals. This makes it a key component in high-strength steel alloys.
According to the International Molybdenum Association, nearly 80% of the moly demand comes from the manufacturing of tools, high-speed steel, stainless steel, and low-alloy steel.
These high-strength steels are required for extreme conditions and used in such applications as offshore drilling rigs, power plants, ships, turbine engines, tools, hospital equipment, and desalination plants.
But molybdenum's uses don't stop there. The metal plays an important role in environmental protection since it is included in nuclear reactors and oil and gas pipelines to prevent leaks, and as a catalyst in oil refining to reduce sulfur in fuels.
Molybdenum is also valued as a specialty high-performance lubricant and a component in flame retardants, fertilizers, and even vitamin supplements.
This metal's versatility is truly unmatched.
Investing in Molybdenum
Molybdenum could again be one of the most profitable metals to invest in over the next several months.
Why? Because Global molybdenum demand is expected to continue increasing by an average 5% per year for at least the next two decades.
Demand will exceed supply for the seventh straight year this year. And the market is expected to remain in deficit for at least the next three decades.
With demand so quickly outstripping supply, the price of molybdenum will likely go higher.
Keep in mind, there are limited ways to invest in molybdenum. Publicly-available molybdenum futures just began trading on the London Metals Exchange.
The easiest and most profitable way to invest in the metal is moly stocks.