Orocobre and Galaxy Resources investors are betting on a rising lithium price today

The lithium price is never certain as it's not exchange traded.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Orocobre Ltd (ASX: ORE) and Galaxy Resources Ltd (ASX: GXY) share prices are pacing the S&P/ ASX200 (ASX: XJO) higher today to be up 9.3% and 4.2% respectively in early afternoon trade.

The lithium miners have not released any specific news to the market since before Christmas, but are probably climbing today on investor expectations that lithium prices could rise in 2019.

The lithium price outlook sharply divides the bulls and bears as both global supply and demand are hard to get an accurate forecast on due to the complex nature of operators on both side of the equation.

Adding to the opaqueness is the fact that neither lithium spot or futures prices are openly traded on an exchange or similar public price-fixing mechanism such as gold, oil, copper, or silver prices for example.

In fact investors are reliant on the prices reported by the miners like Orocobre themselves to get a gauge on where prices sit.

In the absence of any other news it's likely that the lithium miners are heading higher today on some strong prices being privately reported by miners or industry players.

Around 60% of total lithium produced globally comes from the "lithium triangle" in the region where Chile, Argentina and Bolivia meet and prices achieved in this area generally drive expectations for futures prices.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Green stock market graph.
Share Gainers

Here are the top 10 ASX 200 shares today

It was one for the history books today.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Boss Energy, DroneShield, Pilbara Minerals, and Polynovo shares are charging higher today

These shares are having a good time on hump day. But why?

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a nervous, but positive, Tuesday for ASX investors.

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Share Gainers

Why Bapcor, Ramelius, Sandfire, and WIA Gold shares are rising today

These shares are having a better day than most on Tuesday. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »

Two people lazing in deck chairs on a beautiful sandy beach throw their hands up in the air.
Travel Shares

Guess which ASX All Ords travel stock just rocketed 17% on an earnings upgrade

Investors are piling into the ASX All Ords travel stock today. Here's what's happening.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »