Opinion pieces / Reader submitted Articles
Investment Grade Molybdenum
Commodities are physical substances like grains, food and metals. An investment
is the purchase of a financial product or other item of value with the
expectation of favorable returns in the future.
Well, I prefer metals for preservation of my wealth. The question is what metal
would you pick to preserve your wealth? Now the next thing to keep in mind is
not to be biased in any way. That is, to buy a certain metal because someone
tells you to, or to buy a certain metal because it is on an upward price trend
or buy a metal because you read an interesting article on it.
#1 on my shopping list. I look at is a the ability of a metal to actually
promote or enable life of plants and animals on this planet. This means that you
can actually grow food with it or grow trees. You can actually use the metal by
sprinkling the powderized form on your soil and let the microbes in the soil
slowly break down the metal and make it available for the plants to consume.
Hydroponic or Aeroponic growing of food uses about 17 life giving elements that
are added to the water to give complete nutritional support for plants.
Unfortunately, there are only 7 elements of the 17 needed for plants that are an
actual "metal". These are called transition metals. Transition metals are known
for their ability to conduct electricity, their hardness, high density,
malleability (a material that can be worked with or hammered into flat sheets),
ductility (able to be produced into a thin wire).
These 7 investment grade metals are Molybdenum, Cobalt, Copper, Zinc, Manganese,
Iron, Nickel. Nickel is documented as a essential nutrient in some plants.
Nickel is not used in some high-end hydroponic formulas.
#2 on my shopping list. I now have 7 transition metals that are used in growing
food and are capable of being in my metal portfolio. But, I only want one metal.
I will now consider the amount of this metal available on Earth. The next step
would be the abundance of the metal or scarcity of it. Here is a list of these 7
metals and the amount in parts per million in the Earth's crust.
- Molybdenum 1 ppm Molybdenum is most valuable here because of scarcity
- Cobalt 25 ppm
- Copper 60 ppm
- Zinc 70 ppm
- Nickel 84 ppm
- Manganese 950 ppmIron 56300 ppm
#3 on my shopping list is the melting point. I want a metal that can withstand
high working temperatures. There is something called metal "creep" and that is
the expansion or deformation of metals when they start reaching temperatures
near the melting point. I like metals that don't creep or change shape in high
temperature conditions eg: Jet engines, Furnaces or anywhere where safety is
Molybdenum has the highest melting point of any life giving metals. Molybdenum
has the sixth highest melting point of any element on Earth, which is
- Molybdenum 4753 Degrees Fahrenheit Melting Point
- Iron 2800 Degrees Fahrenheit M.P.
- Cobalt 2723 Degrees Fahrenheit M.P.
- Nickel 2651 Degrees Fahrenheit M.P.
- Manganese 2275 Degrees Fahrenheit M.P.
- Copper 1984 Degrees Fahrenheit M.P.Zinc 787 Degrees Fahrenheit M.P.
#4 on my shopping list. The metal is an investment so I Do Not want it to rust,
oxidize or corrode. If this happens you can surely say goodbye to your
investment. Molybdenum does not react with water or air at room temperature and
will not corrode. Molybdenum will keep a beautiful lustre (silvery blue). Copper
and iron are definitely OFF my shopping list in this category.
Molybdenum: Research this incredible metal for yourself, it has many uses.
Metal Price Evaluations : Now and In The Future
The year is 2100 and high amounts of metals have been extracted from the Earth's crust and more is needed but deep space is the only source. Cities, roads, precious farmland, parks and woodlands are built or preserved where possible high grade ores are, will we dug up to accomodate our need for metals? All the landfills have been dug up and the metals extracted from them! Will rationing and super high prices of metals be a mainstay if humans leave Earth with our resources? Will there be a supply of life giving metals on another planet? Will the value of a metal on Earth increase if someone leaves Earth with a portion of it? If these scenarios I mentioned happen, maybe now would be a good time to start collecting metals that will be very valuable in the future, especially if you are not rich now, but would like to leave a little something for your grandchildren/loved ones.
Right now metal is usually priced on supply and demand. For Gold there is a London Fix pricing, for some other metals, companies set prices based on the average price from other market competitors (LME, CME, etc..). I like that Molybdenum is super cheap right now ($1 an ounce) and I think it will be the Knight in shining armour in the near and distant future.
What if metal prices were based on how much there was available on Earth? Let us now imagine that the future is now, and all the metals have already been extracted from the Earth's crust. This means that where, how, when it was mined and how difficult it is to separate does not affect price anymore. Let's talk about all the metal that WAS in the Earth's crust. It is now extracted and recycled from old vehicles, landfills, ageing infrastructure etc.. In my opinion only metals that sustain life would be in my metal collection. If this scenario ever happens and it will if the population increases and that means more infrastructure, entertainment, transportation etc... it would be good to get a head start right now on possessing important metals.
In this upcoming list I want to talk about the ratio of metal prices that is happening right now.
- Iridium is the rarest at 0.001 ppm in Earth's crust, cost is $1050/ounce. Gold is at 0.004 ppm in Earth's crust, cost is $1500/ounce.
- Iridium is 4 times less abundant than Gold and should cost $6000/ounce.
- Rhenium is about the same abundance in Earth's crust as Gold but only costs $120/ounce.
These prices are approximations and my point is that metals are priced on hype and what we price them at, but they should be priced according to Earth availability and maybe will be one day.
If you consider life giving elements (transition metals) for pricing,
- Molybdenum is 56000 times scarcer than Iron and only cost 65 times more.
- Molybdenum is 60 times scarcer than Copper and costs only 4 times more.
- Molybdenum is 25 times scarcer than Cobalt and costs the same.
- Molybdenum is 70 times scarcer than Zinc and only costs 18 times more.
- Molybdenum is 84 times scarcer than Nickel and only costs double the amount.
- Molybdenum is 950 times scarcer than Manganese and only costs 30 times more.
These prices are definitely mind boggling and if you think these don't matter, you might be wrong. It's only a miracle that the most important metal (Molybdenum) is the cheapest, that is if you look at the abundance/cost ratio.
Wealth is carried on through generations, look at the monarchies and their Gold. Look at the Vatican and its Gold reserves. The world banks and financial institutions also own plenty of Gold. They and other rich people own most of the Gold. Everyday people buy into this "crisis investment" and "hedge to inflation" scenario for hundreds of years now and it just gives Gold a stronghold. Therefore the rich stay rich. In the not so distant future you will wish you accumulated a different more useful metal, for example: Molybdenum.
As always do your own research.
Due diligence people.
Molybdenum the new Gold ! 9 reasons why investing in this commodity makes sense:
#1 An investment will and should be in a precious metal needed for life to occur, plants and animals need Molybdenum to live. There is nothing more fundamental or basic than an element. We need elements to build or grow anything. We need Molybdenum (an element) to grow any plant or life form. There are 3 types of elements: poisonous, inert and life giving. Which elements would you want to be around? Which elements would you keep away? Gold does not support life. Silver does not support life. As for Platinum, Palladium and Rhodium you can probably guess what I will say next. Molybdenum is the finest metal to be a part of (literally). Molybdenum has many uses.
#2 Molybdenum has the lowest abundance of the life giving elements in the Earth's crust (other than industry useless Selenium) at 1 ppm (0.0001%).
#3 Molybdenum has the 6th highest melting point of all the elements, and by far the highest melting point (4753 degrees fahrenheit) of all the metals needed for life.
#4 If I were leaving Earth forever, I would build the ship out of Molybdenum. I would only bring life giving elements with me, that is the same mentality I have here on Earth, that is to invest in physical Molybdenum. I could grow hydroponic plants which need Molybdenum and other life giving elements to survive. I would not bring Gold with me.
#5 China has high rates of esophageal cancer and/or strokes because of low Molybdenum amounts in their soil. To fertilize farmland you need half a Pound of Molybdenum per acre (International Molybdenum Association)some websites suggest up to 6 pounds per acre, on a 1-3 year basis. There are about 1 billion acres of farmland in the U.S.A. and billions of acres of deficient farmland worldwide, which clearly means there is not enough Molybdenum for everyone.
#6 Nuclear power is not leaving, nor are oil and gas pipelines. Nuclear power plants need high Molybdenum content stainless steel cooling pipes (6.5% or higher Molybdenum) because it prevents corrosion. Salty ocean water is very corrosive to the water cooling pipes. All nuclear power plants are near large bodies of water and need lots of water for cooling the reactors. Pipelines use high amounts of Molybdenum and will be using higher percentages of Molybdenum content in the future to combat corrosion and reduce friction of crude oil delivery in the pipelines. Corroded infrastructure and new infrastructure will need Molybdenum for the Steel used. Molybdenum also greatly enhances Steel strength.
LUCKY #7 CHINA IS CALLING MOLYBDENUM A NATIONAL RESOURCE AND IS LIMITING THE MINING OF MOLYBDENUM BECAUSE THEY KNOW IT IS MORE VALUABLE LEFT IN THEIR MINES AND IN THE GROUND, THEY WILL BUY EVERYONE ELSES AT LOW CHEAP PRICES NOW. THEY WILL IMPORT THIS METAL. CHINA REALIZES THAT IRREPLACEABLE MOLYBDENUM IS IMPORTANT FOR THEIR COUNTRY GOING FORWARD.
#8 The world total yearly amount of Molybdenum mined and CONSUMED is 500 million pounds. What does that amount look like? Well it's 150 meters x 150 meters x 1 meter high. That is not much at all! ONE small project could easily consume this all. All the data on the internet mentions tonnes and millions of pounds and when you look at the total amount mined in volume (cubic meters), it is very tiny.
#9 ONE investor could buy the whole planets yearly Molybdenum production for $8 billion dollars (Jan 2011). Molybdenum only costs $1 per ounce. In comparison, to buy all the Gold that is available and that has ever been mined, it would cost you $7.4 trillion dollars (Jan 2011) to buy the 375 million pounds of useless bling!
CAN YOU OWN A METAL WITH A WORLD RECORD TITLE?
The Rarest, Strongest, Highest Melting Point, Densest and Most Corrosion Resistant metals. You can buy all these record breaking metals. Conventional wisdom says buy Gold or Silver, I beg to differ. A portion of your potfolio could invest in these record breaking metals.
I always prefer metals that are consumed, support life, are impervious to wear and tear and are rare, that is alot of conditions for one metal. That metal is Molybdenum at $1 an ounce.
Here are the record breaking metals:
#1 The DENSEST natural element is Osmium.
- - This metal is shiny and is similar in appearance to silver.
- - It has the 3rd highest melting point of all the metals at 5500 degrees fahrenheit.
- -The Earth's crust has about 2 parts per billion of Osmium.
- -You can purchase fantasy coins and pellets of Osmium online.
- - The price is about a $400 an ounce and can greatly vary.
#2 and #3 The MOST CORROSION RESISTANT and RAREST element on earth is Iridium, some people even say it is the densest.
- -This metal is a silvery yellow shade.
- -The melting point is 4500 degrees fahrenheit.
- -The Earth's crust has about 1 part per billion of Iridium.
- -This metal can be purchased in a wedding band form from american elements and in pellet or fantasy coin forms elsewhere.
- -The price is about $1000 an ounce and can greatly vary.
#4 and #5 The metal with the HIGHEST MELTING POINT of all the metals is Tungsten. Tungsten is sometimes considered to be the STRONGEST also.
- -This metal is a dull grey colour.
- - The Earth's crust has about 200,000 parts per billion of Tungsten.
- -The melting point is the highest of all metals at 6200 degrees fahrenheit.
- -This is a popular metal and can be purchased in almost any form. The price is about $3 an ounce.
Did you invest in number 42?
What I mean by number 42 is the atomic number 42, the element is Molybdenum and this is also the commodity you should invest in.
I asked "Do you use Molybdenum" to a well known local area farmer here in London, Ontario which farms hundreds of acres of corn, soy beans and peas and his response was "it rings a bell, what is it?"
Molybdenum is not well known yet to farmers, but when they try it on their fields they will not stop using it.
Here is a little lesson. When you grow a plant you take nutrients out of the soil. To grow more plants in that soil you have to put nutrients back in. Nitrogen, Phosphorus and Potash are 3 main nutrients that all farmers add back to their soil in some way, this ensures that the plant will grow huge.
This does not mean that the plant is also healthy. To be healthy you would also add micro nutrients like the commodity Molybdenum. The plants would be healthier eg.. they would contain less toxic nitrosamines and many other reasons also. We would be healthier because we would consume more Molybdenum in our diet.
So most of you would think I am saying to invest in Molybdenum because it is good for our health and a plants health, well you are wrong.
Going back to what I said about Macro nutrients that are used yearly in huge amounts by farmers. Farmers add Nitrogen to soil by injecting Ammonia gas to soil, spreading urea pellets, etc...The price of Nitrogen is determined by natural gas prices.
Farmers can also easily grow a leguminous crop which is edible and also captures Nitrogen out of the air and stores it in the roots for the next years crop (Nitrogen fixation). This is how applying Molybdenum accomplishes 2 huge tasks . Farmers can also grow winter leguminous cover crops (clover) which could use Molybdenum supplementation also.
For this to happen efficiently leguminous (soy beans,peas, peanuts, etc.) plants should have 10 times more Molybdenum (10 ppm) in the soil than the least desirable amount in plants (1 ppm).
Molybdenum can be added at $15 (wholesale price) an acre which is one pound per acre or even smaller/larger amounts if desired, any amount is better than none at all. According to New Mexico State University a farm could effectively capture roughly 250 pounds of Nitrogen PER ACRE depending on the Leguminous species used. To supply 250 pounds of Nitrogen it would cost a farmer $50 (wholesale price) per acre for undesirable urea pellets (2011).
Therefore adding Molybdenum to soil is cheaper for farmers and healthier for us.
The important thing is that when farmers catch on they will realize there is not enough for every farm and the commodity will sky rocket in price because the world's supply is only 500 million pounds per year of Molybdenum. There are also many other uses for Molybdenum. I also think Molybdenum should replace Gold or Silver, my other articles will explain why.
There are 1 billion acres of farmland in the U.S.A. which would require at least 1 billion pounds of Molybdenum to fertilize, there is not enough Molybdenum for everyone.
Remember that all these facts are Internet based and that fundamentally by adding Molybdenum to any soil would provide a net benefit for all plants and animals because this commodity is not spread evenly on the Earth. A profitable mine would contain at least 500 ppm (.05%), fertile and rare (in terms of Molybdenum) farmland would contain at least 1 ppm.
This is only one in depth reason to invest in this special commodity.
Molybdenum And Copper Commodities : 2 Peas In A Pod
I like to invest in commodities that are continually put to use, as in fertilizing farms and manufacturing stainless steels (Molybdenum), l like commodities that have a low abundance on Earth and that are irreplaceable (Molybdenum). I especially like metals that do not oxidize easily (Pure Molybdenum). Molybdenum is a shiny grey metal with a hint of blue in it and has the highest melting point of any life giving metals.
I stay away from poisonous commodities, because we don't really truly need them we just want them. I stick to commodities that make sense, I mean don't you like trees, birds, animals and healthy food? Healthy food starts at the bottom of the food chain. Molybdenum can help create a healthy ecosystem Worldwide by making farms more productive(feeding bacteria in the soil to fix Nitrogen). Copper is an essential element for plants and animals also. Every little bit of money you put in a good idea helps that idea spread further like a good dream.
Copper has many other uses than just in agriculture. Copper is used in generators or electrical motors and in a million different areas.
What is nice about Molybdenum is that it is usually found with Copper, Silver and Rhenium in rock formations called Porphyry deposits. Copper and Molybdenum compliment each other in certain applications eg. farming.
If you like to invest in Copper then why not choose a mine with large amounts of Molybdenum also, or even a mine with Molybdenum as a primary component since Molybdenum is 70 times more rare than Copper and is 4 times more expensive than Copper. Molybdenum is $18 a pound and Copper is $4.50 a pound. Molybdenum is actually cheap right now and Copper is at an all time high, therefore it makes since to choose a mine that has Molybdenum as a primary metal.
Silver is sometimes used in water filtration to prevent bacterial growth on carbon filters. It is also a great conductor of electricity. Silver is consumed industrially and is also collected as a hedge to inflation. Some people invest in mines with just high amounts of Silver which is a bad idea when you can purchase stocks in mines that have Silver, Molybdenum and Copper.
Rhenium is also found in Porphyry deposits and is used in high temperature applications and is extremely rare on Earth at 1 part per billion. Molybdenum abundance is 1 part per million. Copper is 70 parts per million. Rhenium is also very expensive at $2000 a pound.
There are mines that have Molybdenum as a primary component and not just a tailing or left over product to Copper mining. Mines which only produce Molybdenum as a tailing are not desirable because when Copper is not in demand mines cut back on production and that would decrease the already existing small amount of Molybdenum production also since it is just a tailing product.
I think mines should be open pit and in desirable climates (warm) to be profitable. People can work easier and a lot safer this way.
What coin metals could you physically invest in?
We have all seen Gold, Silver, Platinum and Palladium coins and bars. We have all seen the base metals: copper, zinc, tin, nickel, manganese, aluminum, magnesium and iron based government circulation coins. But what about other precious metals? You can purchase these 3 precious metals, which are the ONLY other precious metals you can buy from a government mint on this planet: tantalum, niobium and titanium. Tantalum and niobium have very high melting points (5463 and 4491 degrees fahrenheit) 5th and 7th highest melting points of all the elements, they are 2 of the 5 refractory metals (retains its strength at high temperatures). Titanium has a extremely low density, is strong and is highly corrosion resistant. These metal coins would make a great addition to any physical metal portfolio, especially if you like to diversify. What if the well known precious metals drop in extreme value? Aluminum was more valuable then gold and silver before 1880!
To invest physically in these metals you can purchase government issued uncirculated coins. Which have a cash value, can be trusted in purity and have very high detail and beauty. These are highly sought after by coin collectors and metal investors.
Tantalum core coins (26.8 grams) with a silver outer ring (14.6 grams) can be purchased. Tantalum is a dense metal. The Kazakhstan government mint issued a Space Series coin. The currency is the Tenge and the amount is 500.
These coins are issued every year since 2005.
These are the only tantalum coins available in the world issued by a government mint.
Niobium core coins with a silver outer ring can be purchased. Different colors of niobium cores are available because of the oxidation process (red, orange, yellow, green, blue, purple and brown). Luxembourg and Austria have issued about 12 niobium core coins and the Latvia government mint has issued 3 niobium core coins.
Titanium coins have been issued by many government mints. The Popjoy Mint ( U.K. government) issued many of them, Austrian government issued at least 2, the Luxembourg government issued at least 3, the Gibraltar government released some titanium coins also.
There are many NON government mints with many other metals available e.g. rhodium and molybdenum. These coins and bars are very inferior in quality, precision and are not legal tender.
Gold In The Year 2050: World News Headlines...
The price of gold hits $10,000,000 an ounce as all the high and medium grade gold mines are gone.
There are no profitable high grade gold mines left, the price of gold explodes because of the increased energy inputs! Gold hoarders won't sell their stash unless you give up your land!
Was all that gold mining necessary, can we use our gold for growing precious food? Gold has prompted war at the hands of government destabilization worldwide!
The price of gold is far out of reach for any medium to low income earner, even for 1 gram!
Has gold outlived its glamour and shine, what do we buy next?
What will all the people that have gold, do to sell their high priced gold?
Many world governments will not accept gold as payment of any kind!
We have not used gold for anything other than saving, we cannot recover it even from scrap, it's all gone !
The price of nitrogen fertilizer skyrockets and molybdenum is used instead, as a nitrogen capture for soil! The Chinese government had been secretly saving molybdenum in their vaults and in their infrastructure ! The Chinese and Americans had the most molybdenum in 2010 when it was $1 an ounce!
What metal is humankind going to call a best friend?
Should we dump our gold before it becomes alienated ?
The world's first giant spaceship is built to travel and stay on Mars ! Molybdenum is the primary component!
These are possible headliners you could see in the future.
Do your own research now.
Due diligence people.
What Can You Do With Your Extra Money?
If you put money in the bank for that little yearly return (2%) and feel safe. Think again, your money at those little interest rates will give you less purchasing power in 10 or 20 years time. What do you think the banks do with your money? They invest in high return stocks and other investment vehicles with unusually high returns. If there are no returns, so what. There is no accountability. The world governments will ensure that banks will always operate, no matter what. If they don't operate society will change in unthinkable, uncivil ways.
The question is, what could you invest in with your extra money? Well, if you think banks and financial institutions that are looking for their own profits are a good way to go, you could get into real estate and hope for favorable returns in the future (when you sell it).
Problem #1 with real estate that's not your principle residence, is collecting rent, property taxes and renovating (to keep functionality and visual appeal). Ask yourself why does a house that ages, needs renovating and so on, become a little more valuable(sometimes)? That's right, because all the banks say so, E.g. your vehicle loses value daily.
Problem #2 they put a value on real estate because they own most of it. When there is economic trouble, that value decreases for ALL real estate, comparably ( your owned home vs the banks homes). When you sell you have to wait for favorable market conditions and hope you get the money you want.
Problem #3 if you wanted to move from your country for what ever reason, you could not just carry your real estate with you.
Can you put cash under your mattress and hope for it to build in value? NO. For example, Zimbabwe had a 10 trillion dollar bill, and now its useless.
If you like to buy metals to preserve wealth you may be on the right road (mining road). In the extraction of metals from rocks, machinery needs fuel (which costs money). There are many types of machinery used in mines. Digging or drilling rock, transporting rock, separating rock and plenty of man power. Only now that metal is separated from rock it still has to be transported with trucks and boats that need fuel. This machinery loses value also, which costs the companies a lot of money. This gives metal a "real world value."
You can take your metal with you if you decide to move unlike real estate. This to me is very appealing.
Is gold what I am telling you could preserve wealth? I don't think so. Back to the beginning of my story on banks, they, including the uber rich own most of it. Have you heard of the London Fix where 5 bankers, who probably in one way or another own tonnes of gold, set the price of gold? , that is in my opinion strange and crazy. Gold is not consumed, it is stored for people or banks to compare wealth from one another. What happened to the supply and demand scenario? All gold is stored and not consumed. In my opinion a metal that is actually consumed is a lot more valuable. And when a metal that is stored for wealth can be consumed makes it a lot more valuable.
I will finish this story and say this is where Investment Grade Molybdenum comes into play. I have an article called Investment Grade Molybdenum.
As always do your own research.
Investment Grade Molybdenum : Part 2
In Part 1 of Investment Grade Molybdenum, I established my reasoning for choosing molybdenum as my personal favorite. Now I will bring in some arguments, for example, when I called around to purchase some molybdenum, people usually asked what it was for. I told them I was investing and collecting it.
I had one person laugh, no kidding. One person told me I should go buy some silver if I was investing. On the other hand, back in 2008 Eric Sprott opened up a molybdenum stock that actually had physical holdings of molybdenum in its portfolio. I think it is not silly to invest in physical moly metal as well as moly stocks. If you just chuckled you probably own silver or gold. All metals usually gain value over time, but which metal will prevail?
Molybdenum can be bought in many forms. It is commonly mined from molybdenite ore which is MoS2. MoS2 can be purified and is used as a dry lubricant, desulfurization in petroleum refineries, etc... MoS2 concentrate is 85-99% pure. If you roast or heat up MoS2 to between 500-650 degrees celsius you produce moly trioxide concentrate or tech oxide, which is a yellow powder. MoO3 is used in pigments, flame retardants, fertilizers, catalysts, alloying steels, etc... You can process or treat MoO3 even further to get molybdic oxides, etc.. Purity ranges from 50-99.9%.
Ferromolybdenum (FeMo) is another type of molybdenum mixture, it is added to molten steel to alloy it and is preferred over the moly oxides in alloys with over 1% molybdenum since it avoids having to add oxygen to the heat. FeMo is not pure (60-75%) and is produced when MoO3 oxide is mixed with iron oxide and aluminium and is reduced in the an aluminothermic reaction to molybdenum and iron. This is made in a smelter.
The London Metal Exchange (LME) sells Roasted Molybdenum Concentrates (RMC) which is under contract to be 57-63% pure and it sells for about $36000 U.S.D a tonne ($18 a pound), with a 440 pound minimum purchase. Molybdenum comes in many other forms and can be quite confusing.
MoO3 + hydrogen under high heats produces molybdenum in metal form, which I prefer to buy. I have been quoted $40-$200 a pound for 99.9% pure moly metal. And yes I do purchase moly for investing. Remember that the Earth's crust has molybdenum at 1 ppm in abundance. This means that 1 million pounds of rock would only contain 1 pound of molybdenum and at $40 that is cheap.
Please do your own research.