I didn’t know I was allergic to it until I got my braces off when I was 14 years old. The orthodontist prodded at my swollen, red gums and pronounced, “You have a nickel allergy!”
It would have been nice to know that before I had those braces on for three years…
Until then, I didn’t know that nickel was used in everything!
From stainless steel to electronics, magnets, batteries, and even guitar strings, nickel is ever-present in our daily lives.
Nickel is an element like lithium or cobalt that has many practical uses in the modern economy. And without it, many industries wouldn't be able to exist.
Nickel's main use is in stainless steel. Stainless steel and nickel are combined to make a better, longer-lasting metal. Nickel lasts for 25–30 years without breaking down, so combining it with stainless steel makes the steel last longer.
Stainless steel is used in almost every manufacturing industry. And without nickel, stainless steel would be much less effective.
Stainless steel demand is booming, especially in China. According to Bloomberg:
Production of stainless steel, used in kitchen equipment and chemical plants, expanded 7 percent to 11.6 million tons in the first half… Stainless-steel output accounts for about 65 percent of nickel first use.
In addition, nickel is used in the automotive industries because nickel-based alloys become a hard coating that can be used in a myriad of things in the automotive industry. For the auto industry, 2016 was close to a record-breaking year, with sales and production jumping. So, nickel is in more demand than ever before.
Right now, nickel just hit 11-month lows.
I know that might scare you.
But that’s why now is the time to buy.
You see, there was a lack of supply last year because several of the biggest nickel mines in the Philippines were shut down.
Because of that, prices spiked. They’ve since dropped because supply has been increasing over the past year.
The best time to buy is when others have fear.
We don’t just want nickel — we need it. Demand is rising. And once the supply glut ends, nickel will be back where it should be: on top.
And these nickel stocks will be in a prime place to profit when it does.
Balmoral Resources Ltd (OTC: BALMF)
Balmoral Resources is a Canadian exploration and development company that focuses on high-grade gold and nickel, along with copper, cobalt, platinum, and palladium. Its nickel-mining operations are solid. But even if nickel isn’t making a profit, the company's other metals, especially the much-in-demand cobalt (for use in lithium-ion batteries), will keep the company steady. Balmoral has a market cap of $82.83 million.
RNC Minerals (OTC: RNKLF)
RNC Minerals produces nickel as well as gold, copper, and platinum metals, which means that even if nickel prices are low, RNC has products to fall back on. The company's main mines are a gold and nickel mine in Australia and a nickel project in Quebec. RNC has a market cap of $49.722 million.
FPX Nickel Corp (OTC: FPOCF)
FPX Nickel Corp is an exploration-stage company that's involved in the exploration- and property-acquisition side of the nickel business. FPX invests specifically in nickel-alloy and nickel-iron projects. The company's share prices were up more than 35% in May. And it also recently bought into a new drill program for its 100% owned Decar Project, which has 60 mineral claims in British Columbia.