I am basically trying to draw a picture from the current Graphene investment scenario to establish my view point for investors who are on the lookout for investing in the Holy Grail, the miracle material. I must tell you there is a serious disjoint between Graphene and Graphite.
While Graphene is a promising nano material for a variety of potential applications, but Graphite, isn’t really about Graphene, graphite however is something else it’s the highest grade of coal and is a key component in steelmaking (used to ad carbon) and lubricants, pencil leads and is priced like iron ore by the ton.
Well, my argument against investing in Graphene stocks, centers on the presentations by the copywriters peddling graphite miners as potential Graphene stocks. But don’t just take my word for it — let’s examine this closely…
There’s a rarest of the rare chance at some point in the distant future that the highest quality graphite going into producing Graphene, and this may become a big business enough to drive graphite prices. Sorry mate I disagree!
As of now Graphene is a hugely expensive nano material whose cost comes from processing the nano material into one atom thick sheets, and not from the raw material itself. Did you know that one square inch of the nano material wrapped on a copper coil costs as much as$60 per square inch.
I know you may argue about the recent spike in graphite prices that led newsletter vendors, into peddling graphite miners with lousy stories connecting the recent advances in Graphene. No it was about surge in the uses of graphite in energy storage lithium ion batteries and various fuel cell technologies.
It can be very difficult to figure out the real worth of Graphite miners most of all are teensy companies whose price depends on what investors think about them as an investment. While the miners have a good chance to be the kind of (flavor of the month stocks) which can cause its prices to be very volatile. As we have seen in case of Northern Graphite driven over $3 by the attention of investors and it has dropped down to a few cents now.
Don’t ever buy a graphite mine because Graphene is going to become a next super material. Here are some of the most touted graphite miners with lousy stories, to stay away from at any cost. Do your own research! So that was a skeptic’s stake.
And yes we are at least a decade away from the day when these potential applications come to exist and find Graphene in tech applications like transistors, touch screen displays, and a range of other uses, as the tech companies insist that the price has to come down to 10 cents a square inch, before it’s applications become commercially feasible.
So quite apparently it’s the processing cost essentially, and not the raw material cost as the sponsored copywriters would like to make us believe. Even as researchers making all-out efforts to produce Graphene in lot of different ways now, the miracle material continues to remain hugely expensive to process.
In conclusion I love the idea of investing in a Graphene stock that is in to researching its applications, but it won’t drive graphite mining profits any time soon. My advice is to stay away from the graphite miners and the hyping copywriters peddling these miners they are mostly a pump and dump operation.