What You Should Know Before You Buy Graphene Stock
When it comes to the next big thing in the stock market, everyone will agree that nothing beats Graphene stock at this point. More and more resources are being poured into the research of this wonder material to figure out how to make it usable in the commercial world.
From producing more efficient solar panels, lighter and high-density batteries, ultra capacitors, LED screens and many others; the potential of Graphene seems unlimited. This is why more and more people are looking to invest in it now for huge gains in the future when commercial applications are realized.
But, before you go out and buy Graphene stock from whichever company you choose, it is important to make sure that you have some facts in mind. A Long Road Ahead Before you invest in the Graphene stock market, be sure to take some time and come up with a list of stocks worth investing in.
Graphene is a relatively new discovery especially when you consider how long it takes for newly discovered materials to be applied commercially. A lot of research must be done to find new uses for the material as well as perfect production processes to lower production costs to commercially viable levels.
High Cost of Production
Although investing early is always a plus, investors should not look for a quick return on their investment. For instance, the cost of producing Graphene is quite prohibitive.
Even with a number of production methods being available, and large scale production improving over the years, the cost is still too high for widespread commercial applications. This means that we have to wait for this cost to reduce significantly for manufacturers to view it as a worthy investment; and for any Graphene stock companies to make gains.
Invest in Diversified Companies Another fact that investors should keep in mind is to buy Graphene stock from companies that don’t just rely on Graphene applications/operations. This is mainly because you want a stable stock that will gain in the event a commercial application for Graphene is discovered or will not go down if the process takes longer than expected.
Stable stocks are your best bet in reaping any gains from the commercial exploitation of Graphene years from now. It is recommended that you look at companies that are pouring resources into Graphene research but also deal in other operations.
Avoid Penny Stocks
The Graphene stock market is populated with penny stocks for companies that are out to either scam unsuspecting investors or are bound to fail. These companies are usually very small and specialise in Graphene products only. This is against the above guideline in the first place. Secondly they are not likely to survive for years while spending on research if a breakthrough is not forthcoming.
It is recommended that you stay away from such stocks. At this point in time It is still too early to predict which companies will win and which Graphene stock will gain in the race to find commercial applications for Graphene. For those who are adamant in making money off Graphene, look to investing in applied Graphene materials stock in well-established companies.