Investing in LithiumLithium is an essential material that is highly prized in the commodities industry. Its growing use in the manufacturing and energy sectors makes it a perfect commodity to invest in.

Lithium is a silvery white colored metal. Considered as the lightest metal under normal environmental conditions, it is very flammable. The precious metal is ordinarily used in ceramics as well as glass, but it is more popularly used as a key ingredient in batteries (i.e., lithium batteries).

Looking at a lithium price chart history, the commodity is a good buy.

Stabilizing price

Lithium’s price closed at $127.79 on the 26th of September 2018, down by nearly a tenth of a percent from the previous day’s closing. But, historically, particularly the past two years, lithium has improved its value.

In this period, the commodity hit an all-time high of $156.80 (January 2018) and an all-time low of $62.79 (February 2016). During the past five months or so, the price has stabilized between the 120s and 130s.

An opportunity to profit

With prices stabilizing, especially from April to September, it is recommendable to invest now, especially for those who want to hold their shares in a longer time frame. It is noteworthy to point out from the chart that a massive sell-off occurred after the all-time high was reached in January this year.

For short- to medium-term investors, selling off their shares after that peak surely resulted in great gains. But, keeping shares after that high could still be an opportunity to wait for another surge as the last uptrend in the chart suggests.

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Analysts only expect the global lithium supply to increase at least by 2020, so investing now until that time is very crucial. A surplus in the battery raw material would dampen its share price, making it even much cheaper than the lows of 2016. Hence, the next two years is perfect for both investors and producers.