Molybdenum, the Sasquatch Metal
by Johnny DebacleMolybdenum has been making the rounds as an alleged additive for making steel alloys and as a catalyst in the production of certain petrochemical products. As a metal with consumable uses, limited substitutes and a limited supply, it tends to have inelastic demand….allegedly.
I allege that much like the sasquatch, molybdenum does not, in fact, even exist.
Points Which Point to the Non-Existence of Molybdenum:
- Has anyone ever touched molybdenum? Or seen it? I’ve seen or touched platinum, silver, gold and most metals, except uranium which I am willing to take on faith. I’ve never met anyone who had a molybdenum cufflink or a a ring with a molybdenum setting.
- Molyjhkldjaslkdjaslkd. Not a name you would give to a real substance, much less a metal. It seems like an inside joke about Molly B’s Denim. Who is this Molly B? And where are her denim dungarees?
- The price has gone up from $2 per pound up to over $40 in just a few years (currently in the mid-20’s). It is clear as to why the market hasn’t corrected itself — it is difficult to bring on formerly uneconomic molybdenum mines or copper mining trailing operations (where molybdenum can allegedly be found) when molybdenum does not actually exist.
Recommendation: Per Mr. Juggles Investing Commandment 5b you must verify that that which you think exists in an investment, actually exists. The non-existence of molybdenum could prove a crushing blow to stocks of firms who allegedly mine the possibly fictional metal.
any cross-ref to amaranth?
No? Amaranth invested in highly leveraged real commodity markets; to my knowledge they abstained from investing in fictional commodities.
It exists, at least I think it does. I paid about $104 USD for 50 grams of Molybdenum Hexacarbonyl from SIAL four years ago. Today 50g costs $122.50.
I could have done better using an investment grade ABS strategy.
Molybdenum is used in x-ray tubes. But i suppose those don’t “exist”. Sheesh. How do you suppose they make some aircraft parts…look it up on Wikipedia.
Just an FYI. I work for an IB firm recently retained to provide a valuation for a Moly r&d operation. This metal exists. The supply is higly limted and beyon medical there are several applications to LCD and Plasma flatscreens, I would say demand exists. Long.
The google ads at the top of the post will take you to any number of website that will actually sell you Molybdenum and molybdenum-based products – i like irony in small doses
I think you mean will “allegedly sell” molybdenum. Alleged.
@jarrod:
uhhhh….the dude was joking.
GMO paid for 3 weeks in Eastern Europe last year. Some of the chicks were sasquatch! I didnt touch them but I bought a kilo of moly on ebay just to touch that.