GOLDMAN IS BULLISH ON LITHIUM ? Goldman Is Bullish On Lithium?
If you pull up the buying history of GS, one sees Goldman's lithium holdings fluctuate wildly. This could be for a variety of reasons such as hedging, shorting, speculation, etc., but it is interesting to note that recently Goldman has been increasing its lithium position. Granted, some of these positions are nowhere near how much they have owned in the past, yet, they are increasing lithium positions once again.
Why would Goldman increase its position if it were bearish on lithium? Maybe it is some sort of options trade?
Stocks to Play the Goldman Dip
At this point, it should be apparent that either prices continue to rise, or they retreat some, but will prices implode to $16,000 a tonne? It appears unlikely. Hence we should view this as an opportunity to pick up good stocks at depressed prices.
Games within games are being played. You can sit and balk at the games or you can embrace the long term view. Realize that these short term fluctuations create opportunity. Granted, inflation woes will continue to plague the market for some time. Yet with time even these will iron out. Could lithium go down? Absolutely. Will it go down to $16,000 a tonne? I would not place that bet. However, some pull back in prices might be a good thing. Remember that lithium bed does not need to be too hot or too cold. It needs to be just right for all the players involved price wise.
Written by : Austin Craig