How to trade & invest in molybdenum for beginners 2025 

Learn how to make your first molybdenum investment and get practical tips for both short-term molybdenum trading, and how to invest in molybdenum long-term.
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Written on Dec 18, 2023
Reading time 12 minutes

In this guide, we explore the foundational aspects of molybdenum investments, from the factors that drive molybdenum prices to the various investment vehicles available, such as spot markets, futures contracts, stocks of molybdenum companies, and exchange-traded funds (ETFs).

Can I invest in molybdenum?

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Yes, investing in molybdenum is straightforward and available to anyone using an online trading platform. Investing in molybdenum and trading molybdenum represent different approaches with varying time horizons. 

Molybdenum investing involves a long-term perspective with the main aim of growth and diversification. molybdenum trading, on the other hand, focuses on short-term price movements for quick gains. 

You can invest or trade molybdenum through many different avenues, including physical ownership, molybdenum exchange traded funds, or CFDs. To decide on the best approach, you will need to consider your goals and time horizon before aligning your strategy with your specific objectives. 

Where can I trade molybdenum online?

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Before you invest in molybdenum you’ll need to register with an online broker. Our experts have selected some of the top molybdenum trading platforms. Check out any of the links below to get started in just a few minutes.

We found 5 commodity trading platforms for users based in

eToro review
4.6
eToro
Min. Deposit $100
Fees 1%
No. assets 50+
Demo account Yes

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Plus500 review
4.5
Plus500
Min. Deposit $100
Fees From 2%
No. assets 2800+
Demo account Yes

Plus500 review

CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

BullionVault
Min. Deposit n/a
Fees -
No. assets n/a
Demo account -

What is molybdenum investing?

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Molybdenum investing gives investors a unique avenue for portfolio diversification and capital growth. As an investment, molybdenum can serve multiple purposes. 

Many investors use molybdenum as a store of value, as a way to hedge against inflation, or for diversification. molybdenum’s historically low correlation with other assets like stocks and bonds makes it a top choice for investors looking to reduce overall risk. 

Although molybdenum prices can fluctuate in the short term, investors generally focus on the potential for steady and long term growth. This long term focus is what differentiates molybdenum investors from traders. 

What is molybdenum trading?

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Molybdenum trading can take many forms. Speculators, or retail traders capitalise on short term price fluctuations to earn profits. Producers or other entities involved in the molybdenum industry can use trading strategies to hedge against future price changes and ensure safety for their business operations. 

Long term investors look to hold positions for extended periods to profit from molybdenums’ future growth. Futures contracts, spot markets, options, and various derivative instruments are standard methods for trading molybdenum. In the following sections, we’ve explained the different ways you can trade molybdenum so you can find the most suitable method. 

Ways to invest in molybdenum

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There are several options available when it comes to investing in molybdenum and the one you should pick depends on your budget, experience, and the timeframe for seeing returns. Here’s a look at the various ways you can invest in molybdenum.

  • Invest in molybdenum stocks. Perhaps the simplest way of gaining exposure to molybdenum is investing in public companies that are involved in the molybdenum industry. The share price of these companies will correlate somewhat with the price of molybdenum. 
  • Invest in molybdenum ETFs. Exchange traded funds (ETFs) are funds that trade on the stock exchange like any ordinary stock; however, they contain a selection of different stocks, providing a diversified blend for investors. You can also invest in molybdenum commodity ETFs, which are funds that have their value pegged to physical molybdenum. Our guide on the best metal ETFs has a selection of funds to invest in. 
  • Invest in molybdenum funds. Mutual funds are created when capital from many different investors is pooled together and a fund manager takes control, using their expertise to decide what molybdenum assets to invest in and when to sell them. This can be a great way of investing in molybdenum without the strain on your own knowledge and experience.
  • Trade molybdenum futures. Futures contracts are the most common way to speculate on short term price changes. They are an agreement to make a trade at a future date for a pre-agreed price. molybdenum futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the market.
  • Trade molybdenum CFDs. Contracts for Difference (CFDs) are a popular way to speculate on molybdenum price movements without having to own the physical asset itself. This makes them ideal for commodity trading, where it’s not practical to own and store large quantities of molybdenum. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to molybdenum markets. 
  • Trade molybdenum options. Options let you buy or sell molybdenum contracts at a predetermined price on or before a specific future date. molybdenum options trading requires some expertise but allows traders to capitalise on price changes and manage risk, which makes it popular with people familiar with the molybdenum market.

How to invest in molybdenum – a step-by-step guide

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Investing in molybdenum is a simple process. Before you begin, you’ll need to register with an online broker to access the molybdenum market. Follow the steps below to learn how to invest in molybdenum. 

Step 1. Define your investment timeline

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You should clarify your investment objectives as the first step. Are you seeking long-term capital growth, portfolio diversification, or short-term speculation? Your investment timeline will influence your molybdenum investment strategy. 

Step 2. Open a molybdenum trading account

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Choose an online broker that offers the molybdenum market. We recommend eToro as the best molybdenum trading platform. It has one of the widest selections of derivatives available, so you’ll find multiple ways to invest in molybdenum. 

Step 3. Choose your investment vehicle

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You can invest in molybdenum in many ways. Use our guide above to help you decide which option is most suitable for you. Once you’ve selected, search for your chosen investment using your broker’s search feature. 

Step 4. Analyse the molybdenum market

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Before investing, take the time to analyse the molybdenum market thoroughly. You can look at factors such as supply and demand dynamics, geopolitical events, and technical analysis. You can use your analysis to help develop an investment or trading strategy. 

Step 5. Make your investment

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It’s time to place your trade when you’ve completed your research and defined your strategy. Search for the market you want to invest in and visit its trading page while logging into your brokerage account. 

Check its price and enter your trade details. You can click buy if you’re investing in molybdenum stocks or funds. If you’re trading molybdenum using CFDs or futures, consider including a stop loss and take profit level to help protect your position. 

Step 6. Monitor your investment portfolio

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Regularly review your portfolio and its performance. You may want to consider rebalancing if necessary and be prepared to adjust your strategy as the molybdenum market conditions change. 

What to consider before making a molybdenum investment

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When investing in molybdenum, it’s important to approach with a well thought out strategy. Considering a range of factors before investing can save you time and money in the long run. Use the helpful tips below to plan your molybdenum trading or investing strategy. 

What are your investment goals?

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Before you begin, you should clearly define your investment objectives. Are you seeking quick gains, long term wealth appreciation, or steady income? Knowing your goals before you start can help guide you in your strategy and also which molybdenum derivative to use. 

Does molybdenum suit your risk tolerance?

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Commodities like molybdenum often experience large price fluctuations due to supply and demand dynamics, global events, and economic changes. Make sure you’re comfortable with the potential for market fluctuations. If you’re a short term trader, then ensure you’ve checked the historical price chart for molybdenum to determine if it’s volatile enough for day trading. 

Will investing in molybdenum add diversification to your portfolio?

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For long term investors, diversification is one of the core principles to follow. When you invest in molybdenum and add it to your portfolio, make sure it complements your existing investments. For example, if you already own several molybdenum stocks, you may be better off choosing another commodity. 

Take the time to study the molybdenum market dynamics. 

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Like many commodities, molybdenum has unique characteristics and supply and demand fundamentals. To trade molybdenum, studying the broader molybdenum market, especially historical price trends is essential. Before you invest in molybdenum, you will need to understand the factors that influence its value. 

Choose the right investment vehicle.

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We’ve already discussed the options available to you to buy molybdenum. Each has its own advantages, so you should select the one most suited to your investment goals. For example, trading molybdenum is best done via futures, options, CFDs, and spot. If you invest in molybdenum, stocks or ETFs are the way to go. 

How does the molybdenum market work?

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The molybdenum market functions similarly to other commodity markets. However, not all commodities move in the same way and molybdenum has a number of unique features that make it independent. Below are some of the key factors at play.

  • Mining operations. Molybdenum is extracted as a byproduct during copper and tungsten ore processing. Both copper and tungsten are mined around the world, although the largest operations are in China, the US, Chile, Peru, and Mexico. And decline in mining for copper and tungsten will have a known on effect in molybdenum’s extraction. 
  • Other metals. Molybdenum is mostly used to enhance the longevity of other metals, mostly steel. These metals are then used in a range of industries like engineering, energy, construction, and transportation. The health of these indsutries and the useage of these metals, plays a crucial role in the value of molybdenum. 
  • Its value fluctuates based on economic growth. Molybdenum’s price is heavily linked to the over all global economy and metal demand. China being the world’s largest consumer of steel and other metals has a direct impact on molybdenum. 
  • Supply and demand. Like all markets, the biggest driver of molybdenum prices is the principle of supply and demand. Many factors impact the supply and demand of molybdenum, including production levels, consumption, and even geopolitical events. 
  • Exchanges. Molybdenum is traded on several exchanges where buyers and sellers transact. The price of molybdenum may be slightly different between exchanges. The main molybdenum exchanges the London Metal Exchange (LME).
  • Hedging. The molybdenum market is often used for hedging purposes. Producers of molybdenum may use futures contracts to protect against future price fluctuations, resulting in stability for their business practices. 
  • Speculators and investors. Retail investors and traders can impact molybdenum prices. This is especially the case for short-term movements, where speculators provide liquidity to the market and impact near-term price dynamics. 

Is molybdenum a good investment?

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This really depends on the key supply-demand drivers, the status of the global economy and your own needs and desires as an investor. molybdenum has many benefits that make it a good choice for investors. Its main advantage is its role in diversification. It also has a low correlation with traditional assets such as stocks and bonds, which means if you include molybdenum in your portfolio, you’ll spread risk and add stability. 

You can also use molybdenum as a hedge against inflation. When inflation rises, the value of molybdenum historically appreciates. The real world use of molybdenum also creates constant demand. However, it’s important to remember that molybdenum investing is not totally risk-free. 

A wide range of factors influences its price, so you’ll need to have a solid understanding of market dynamics before investing. 

What are the risks of trading molybdenum?

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Trading molybdenum has the potential for significant rewards but also carries risks you need to be aware of. These risks are the same across the overall commodity market, but for molybdenum, several more specific ones apply. Below, we’ve explained the main risks of molybdenum investing.

  • Volatility. The molybdenum market is known for its price volatility. Compared to other markets, the price of molybdenum can widely fluctuate daily. It can be costly if you’re unprepared for the volatile nature of the molybdenum market. 
  • Macroeconomic factors. molybdenum prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading molybdenum, you should have a good understanding of these. 
  • Molybdenum has no yield. Unlike with other investments such as bonds or dividend stocks, molybdenum does not provide any income yield. So, any returns you make rely entirely on its value increasing over time. You may encounter long periods of flat prices that can reduce your profits. 
  • Low liquidity. In general, commodity markets have less liquidity than more mainstream assets like stocks or currencies. Low liquidity can be problematic, especially if you’re a trader, as you may have wide bid-ask spreads, which could impact the ability to enter or exit positions. 
  • Regulatory risks. Government policies can play a role in the way molybdenum prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks. 

Bottom line

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Molybdenum investing offers the opportunity for diversification and portfolio growth. molybdenum has potential benefits as a store of value and hedge against inflation, but it’s essential to weigh the risks such as price volatility and market uncertainty before investing. 

One of the key benefits of the molybdenum industry is the various ways you can get involved. There is an investment vehicle for everyone, from molybdenum stocks and ETFs for long term investors to molybdenum futures and CFDs for short term traders. 

However, it is important to remember that direct exposure to molybdenum is difficult to obtain for a retail investor, but using the methods we’ve provided above in this guide will offer an avenue for indirect investment opportunities. A trusted and regulated trading platform is a must if you want to navigate the molybdenum industry successfully. 

FAQs

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01

What is the best molybdenum trading platform?

02

Is it safe to invest in molybdenum?

03

Which is the best molybdenum stock?

04

Is there a molybdenum ETF?


Sources & references

Prash Raval

Prash Raval

Financial Writer

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Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while running an educational service helping novice traders learn the markets. He has a keen interest in micro and small cap stocks....