How to Invest in Nickel
Nickel is one of the oldest known metals with uses tracing back more than 5,000 years. It is often confused with silver due to its white shine but the metal has different properties in a few key areas. One of the most important differences is it that nickel is one of only a handful of elements that remain ferromagnetic in moderate temperatures making it a popular choice for magnets. Nickel generally is mined and the vast majority of the world\'s supply comes from two places; a mine in Ontario Canada and another one in Siberia, Russia.
Nickel has a number of industrial uses across a wide range of sectors. Two of its most popular uses are in nickel steels which account for 60% of the metal\'s use and nickel-copper alloys which account for another 14%. Nickel is generally prized for its anti-corrosive properties which makes a great compliment in steel production as well as in currencies. In fact, many are likely most familiar with the metal thanks to its use in U.S. coinage system and the five cent piece, the nickel. Although the coin is just 25% nickel today it is still one of the biggest uses of the popular industrial metal.
Investing in nickel has appeal thanks to its widespread use in industrial applications and its ability to serve as a hedge against the U.S. dollar and inflationary pressures in certain environments. For those looking to achieve physical exposure a few options are available in the form of bullion or bars as well as a physically backed ETF that trades on the London Stock Exchange. However, due to the metal\'s low value to density ratio costs can be high for storing large quantities. Due to this, some investors may want to consider purchasing stocks of companies that mine nickel instead. While many nickel miners also produce a number of other products as well there are a few pure play choices. Lastly, for those seeking to achieve exposure via futures contracts do trade on the London Metal Exchange while an ETN is available in the U.S. that holds futures contracts of nickel.
Ways To Invest In Nickel
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