Molybdenum 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.