Reasons To Watch Out For Nickel
For the past few years, metal prices have been really dismal. The juniors that explore for the metals have been hard hit and the majors who mine the metals have also been under a lot of strain. Just when you think prices have hit bottom and there might be a chance of an upside in a stock, the rug seems to get pulled out and down goes everything.
One metal in particular that stands out is nickel. Nickle prices have made a huge swing to the upside. Although still down from previous highs you can see in a 60 chart below how the metal is really bullish.
Today Scotia Bank put out news stating that their reasoning on nickel which had to do with Indonesia banning the export of raw un-smelted nickel out of the country. Indonesia had stated this four years ago but of course no one took them serious until all of a sudden there is starting to be a shortage of nickel and thus the price increase in the metal. Scotia also mentioned they were buying Royal Nickel RNX and the stock of Royal took off to a new 52 week high.
Aside from Indonesia's export ban, tensions in Ukrain and Russia could also help propel the price of nickel higher. One of the largest nickel mines in the world is the Norilsk Nickel Mine in Russia and if sanctions go into effect that in itself could drive nickel prices higher. Taking all of this into concideration, nickel looks like it could become the metal of choice and the flavour of the day for investors. For those looking at getting in on the ground floor of a junior of world class property, North American Nickel NAN has it's 100-per-cent-owned Maniitsoq nickel-copper-cobalt-platinum-group-metal project in southwest Greenland. News just this week was out letting shareholders know that the 2014 season has begun. This year there will be two drill rigs running and it is not to find out if there is nickel or not, this year is to define just how huge the deposit really is. Drilling over the past 2 years has pointed to what very well could become another Sudbury Basin or Voisy's Bay type deposit. Greenland being the last frontier and North American Nickel in on the ground floor could very well spell a lot of Ka Ching for investors this year.
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