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Lithium Penny Stocks Remain Volatile

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Lithium Penny Stocks See Unexplained Movement

lithium penny stocksLithium penny stocks have undergone volatile movements in the recent weeks for no clear reason. Analysts watching the surge in movement within lithium holdings can only attribute it to spontaneous interest from one or several buyers. The supply chain is overflowing with material for the popular uses of the material, namely that which contributes to the manufacture of batteries commonly used in electric cars. While the general lithium industry is expected to see some increased interest with the shift towards ecological energy alternatives, the excess supply by the large companies will stifle any smaller attempts at making big returns from investing in mining efforts.

 New Discoveries are not enough to Drive Prices of Lithium Penny Stocks

Large deposits of minerals were discovered in the ground below war-torn Afghanistan in 2009-2010, adding to an already exhaustive supply of the lithium mineral. While there may have been a handful of lithium penny stocks that benefited from the find, the majority saw no gains whatsoever. The amount of speculation around a commodity or stock in general can cloud its actual value and lead to substantial loss. Savvy traders should see the differences between media-driven speculation and actual company facts as they are reported. The facts have been known to be manipulated and while speculation may end up being false, the power to influence stock prices is ever present. Investors will eventually learn to discern between the two during an analysis prior to investing.

News regarding the discovery of new lithium mines seem to stir popular demand for the mineral and despite recent discoveries into medical uses to combat Alzheimer’s, the needed demand far undervalues the supply. Tiny amounts of lithium are used in FDA medications worldwide and the supply for electric batteries now through the next three years is estimated at being more than sufficient. This data includes the growth of the electronic vehicle trend that is blossoming; however, lithium penny stocks are not a sure road to success.

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