Nickel Investment Worth
Overview:
Nickel is a volatile mineral resource of great investment potential, but whose value can be difficult to quantify. It is an essential component in many products of the modern world, ranging from the humble stainless steel kitchen sink to the high-tech batteries of electric vehicles. The demand for nickel is strong and rising, while supply dynamics are complex and uncertain. Prices have been trending upwards at times, with peaks and troughs following conventional markets, making nickel an attractive opportunity for both investors and speculators alike.
Characteristics of Nickel:
Nickel is a silvery white metal with a relatively low melting point and has several unique properties. Its strength enables it to withstand corrosion and to form strong alloys with other metals, including iron, copper and zinc. Its ability to electroplate other metals makes it a key component of modern electronics. Its relatively low cost and availability makes it an ideal option for many industrial and consumer uses.
Nickel is also known for its malleability, which makes it easy to shape and to construct a variety of complicated shapes. It can be used to make stainless steel, which is a common material in kitchen appliances, pipes and other infrastructure items. It also has a high magnetic susceptibility meaning it can be used in speakers, microphones, and other electronics. Furthermore, nickel is an important component in high performance batteries, due to its unique properties, such as its ability to store energy and its low self-discharge rate.
Supply and Demand:
The demand for nickel is driven by a range of industries, including the construction and transport industry, which relies on stainless steel in its products, and the technology industry, which relies on its electrical properties for a wide range of applications. The global supply dynamic for nickel is complex and uncertain. It is primarily produced from the mining of nickel ore deposits, with production concentrated in a handful of principal countries. Other mining and refining operations are also active to a lesser extent. The supply of nickel is limited by both the availability of ore and constraints created by environmental regulations, while the demand is subject to promising rises as the world modernizes with increasing use of advanced technologies, infrastructures and consumer items.
Price Forecasts:
The long-term outlook for nickel prices is largely favorable. In the short-term, prices have been influenced by global events such as the coronavirus pandemic and the US-China trade war. Prices have been volatile in the past, with spikes and troughs following market cycles and agreement between the two major nickel producing countries of Russia and Canada. In 2020, nickel prices were projected to rise and this is forecast to continue into 2021.
Conclusion:
Nickel is a mineral resource of great investment potential. Its use is increasing and growing due to its versatile properties, with demand driven by industries such as construction, transport and technology. Its supply dynamic is complex and unknown. Prices have been volatile in recent years, but analysts remain mostly optimistic about its future value. Nickel is a strong investment opportunity for both investors and speculators alike.
