Global Demand For Nickel Skyrocketing!
The Dynamic Wealth Report
September 14, 2009
Global Demand For Nickel Skyrocketing!
A silent revolution’s taking place in the commodity markets these days.
After experiencing huge volatility in the last 18 months, commodities
are marching steadily higher.
But, most investors aren’t paying attention.
Take Nickel for example.
The price of Nickel is skyrocketing. I’ll bet you had no idea. It’s
happening under the radar of the big news media. And one group is trying
to corner the market… but more on that in a moment.
Nickel set new lows in March and April. Then it rallied to a new high in
early August. All told,
Nickel jumped in value more than 100%.
A pretty amazing run, don’t you think?
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I don’t want to brag… but I have to share this great story with you! In
my
Commodity ETF Alert
service, I told readers to buy Nickel at $21. After it shot up, I told
my readers to sell it at $32. It was a beautiful trade.
By following my recommendation, you could have grabbed an
amazing 49% gain in less than six weeks.
Why did Nickel move so far, so fast?
China of course.
You see, vibrant economies require huge uninterrupted supplies of
commodities. To fuel its fast growing economy, China is buying every
commodity in sight. One big area of focus is the mineral rich, “land
down under”.
China’s been swooping in and buying up every property on the market in
Australia.
The numbers don’t lie.
Just six years ago, you could barely find China on the merger and
acquisition map. In 2003, China spent a mere $36 million dollars buying
companies in Australia. Today they’re the 800 pound gorilla. They’ve
already spent more than $6 billion this year!
Clearly, China’s buying needed supplies to fuel their economic growth.
One key ingredient to economic growth is Nickel. It has thousands of
uses (including the change jingling around in your pocket). But one
major application is a big demand driver now… and the other will develop
in the next few years.
One big use for Nickel now is as a component in stainless steel.
Stainless steel doesn’t rust and it’s very resistant to corrosion. That
makes it an ideal raw material for use in food service, aerospace,
cutlery, and major appliances. I’m sure you have some stainless steel
products in your own kitchen.
Another growing use for Nickel is in advanced batteries.
This could be a huge demand driver in the very near future. These
batteries are going to power electric cars. As battery technology
advances, and as electric cars become more prevalent, demand is likely
to skyrocket. Just imagine millions of cars on the road… each sporting
a battery filled with Nickel.
China needs Nickel to grow… and here’s how they’re
doing it.
From The Wall Street Journal just a few weeks back:
“Chinese Nickel companies are quietly collecting stakes in junior
nickel miners, in a move that guarantees future supplies for China…”
Right now, China must import 23% of its Nickel needs. Remember, we’re
in a recession. As the economy starts to grow, China’s demand is sure
to skyrocket. China knows this and they’re trying to corner the
Nickel market by purchasing the miners producing the commodity.
China’s annual economic growth jumped in the second quarter to 7.9%, up
substantially from the first quarter. And the government is continuing
to stimulate their economy. I don’t know about you, but this is getting
scary.
In just a few years, they have the potential to lock up a huge portion
of production… driving prices still higher and creating shortages around
the world.
The demand from China won’t abate any time soon. That’s why I think
we’re in the early stages of a multi-year run in commodities. If you
haven’t already, consider adding commodities to your portfolio… and
capture some amazing gains.
***Editors Note: If you’ve ever wanted to profit from
the movement of the world’s currencies, without the risk of futures or
options, then we’ve got a new trading strategy for you. Called the
Currency ETF Report, it’ll focus on 14 of the world’s
currencies. Keep an eye on your email inbox tomorrow for details…
• Gambling (Up 15%)
In the last month, one of the top performing industries is gambling.
Year-to-date, the industry is up more than 73%. As consumer confidence
resumes, we’ll see these stocks move much higher. Leading the industry
in the last month is the
Las Vegas Sands (LVS), up 36% and MGM Mirage
(MGM), up 43%.
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