Why Nickel Prices Are Set To Skyrocket During The Coming War

The world is inching closer to war. The Sydney Morning Herald reported over the weekend:

Russian President Vladimir Putin has warned that the standoff between North Korea and the United States is close to spilling into a large-scale conflict, and said it was a mistake to try to pressure Pyongyang into halting its nuclear missile programme.

Mr Putin, due to attend a summit of the BRICS nations (Brazil, Russia, India, China and South Africa) in China next week, said the only way to de-escalate tensions was via talks, and Sergei Lavrov, his foreign minister, said Washington — not Pyongyang — should take the initiative.

Don’t expect much from Washington politicians, other than more war-mongering talk. Senator John McCain and Republican Lindsey Graham more or less run the US Senate. The pair are extremely pro-war.

Donald Trump’s White House is also run by generals.

Jim Mattis is the Secretary of Defense. Mattis was a former marine general. He’s well known for leading a successful tour through one of the bloodiest parts of Iraq. John Kelly is another retired marine general and Trump’s Chief of Staff. Kelly served three tours in Iraq and oversaw Guantanamo Bay. And then there’s National Security Advisor HR McMaster, who was also a three-star Army general.

The generals have a clear stance on North Korea. Mattis told Fox News over the weekend: ‘Any threat to the United States or its territories including Guam, or our allies, will be met with a massive military response, a response both effective and overwhelming.

The threat of another war is real.

I certainly don’t want war. But, realising the risks at stake, I recommend turning your attention to nickel. Nickel is vital for ammunition, tanks, helicopters, rifles, and thousands of other military supplies. It should outperform if bullets fly in the years ahead.

The latest twist

As you have probably heard by now, Kim Jong-un successfully trialled a hydrogen bomb detonation over the weekend. The bomb can apparently be loaded on to long-range missiles, which have the capacity to hit the US.

Hydrogen bombs are significantly more powerful than atomic bombs. They use fusion — the merging of atoms — to unleash huge amounts of energy and devastation. Atomic bombs use nuclear fission, or the splitting of atoms. As you’ll know, atomic bombs were dropped on Japan to end the Second World War.

Sunday’s nuclear test wasn’t good news for China. President Xi Jinping was due to give a speech that day to leaders from Russia, Brazil, India and South Africa. The Guardian reported:

The Global Times, a Communist party-controlled tabloid that sometimes reflects official views, criticised North Korea’s apparently most powerful nuclear test yet as “another wrong choice” from Pyongyang.

“This test will result in a new round of escalating tensions on the Korean peninsula and heighten the risk of the situation spiraling out of control due to possible miscalculations by all sides,” it said in an English-language editorial. “In face of such a complicated situation, China needs a sober mind.”

“The Chinese government should feel angry, unhappy and disappointed,” said Cheng Xiaohe, an associate professor of international relations at Beijing’s Renmin University. “The nuclear test is a slap in the face for China.”

Indeed, we’re powerless to stop the conflict that’s likely coming. And, all things being equal, wouldn’t you rather be invested in the stocks that will thrive during this period of uncertainty?

Much like the Vietnam War, the scarce supply available in the nickel market is likely to send the spot price of the metal through the roof. Nickel stocks could potentially see hundreds, or in some cases thousands, of percent in returns.

Are you buying nickel stocks?

None of this is to say that war will break out soon. I merely believe the risk of a war should keep the nickel price higher. Remember, while no sane person wants war, the situation should be good news for the best nickel stocks.

Take a look at the nickel price:

6 Month Nickel Spot Prices March-August 2017

Source: kitometals
[Click to enlarge]

If nickel rockets with war breaking out, you will want to own the best nickel stocks on the ASX. In my view, there’s only one stock that fits the bill based on my analysis. I believe that won’t be the case soon. The company is awaiting news, due any moment now, which could put a rocket under its share price.

For more details, go here.


Jason Stevenson,
Editor, Resource Speculator

Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:

Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money