All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
With stock markets in turmoil, many investors are turning to investing in commodities. Some of these investors are looking to invest in nickel mining stocks for the first time.
At the time of writing, on 8 March 2022 nickel trading has been suspended in London as trading nickel prices have surged 110% in one day. Nickel prices have risen to $100,000 per tonne, due to expected supply problems following the conflict between Russia and Ukraine. Prices have soared 320% since the beginning of Russia’s war in Ukraine.
Investing in nickel mining stocks from the UK
Some of the most recognisable nickel mining stocks are listed on global stock exchanges, so if you invest in some global stocks, you can get exposure to them. Remember to account for foreign exchange fees when comparing trading platforms.
How to invest in nickel mining stocks
- Choose a platform. If you’re a beginner, our share-dealing table below can help you choose.
- Open your account. You’ll need your ID, bank details and national insurance number.
- Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code. You can search its name or ticker.
- Research nickel mining shares. The platform should provide the latest information available.
- Buy your nickel mining shares. It’s that simple.
Here are some of the pros and cons of investing in nickel mining stocks:
Pros
- Low costs as you own the stocks directly.
- You’ll have control over your investment and the timing of buying and selling stocks.
- You can choose stocks that fit with your investing goals or ethics eg. avoiding Russian-mining companies.
Cons
- Less diversified than investing through an ETF as you’ll own fewer companies.
- Stock prices are vulnerable to big market fluctuations.
How to invest in nickel ETFs
ETFs or exchange traded funds can be a good way to diversify your investment by spreading it between several assets. They work a bit like an index fund, investing in stocks on an exchange. Here are some of the main pros and cons of investing in nickel through an ETF:
Pros
- They have low fund fees so are a cheap way to get exposure to commodity investment.
- You can diversify your investment by investing in a range of precious metals.
Cons
- ETFs are made up of a collection of assets so you can’t pick and choose between stocks.
- Limited range of ETFs are focused just on nickel.
Invest in nickel futures
Investing in nickel futures isn’t suitable for nervous investors as it’s extremely risky. You’re agreeing to buy stocks in the future at a set price that you agree now. You might win big if you’re right in predicting stock market movements, but you could lose money if the price moves in the opposite direction to your predictions.
If you want to do futures trading, you’ll need a strong constitution and a good understanding of stock trading.
Pros
- If your predictions are right, you can make big returns.
- Futures give you direct control over your stocks.
Cons
- Futures are risky and if you could potentially lose money.
- They only last for a set time period and will expire if you don’t use them.
Why is nickel suddenly so valuable?
The amazing rise of nickel prices is largely due to the conflict between Russia and Ukraine. The conflict has prompted fears of long term supply problems.
However, the nickel prices have been extremely volatile in the past. Prices rocketed in 2019 after an Indonesian imports ban but collapsed in early 2020 before rising again.
Most nickel is currently used for the manufacture of stainless steel, but it is also an essential part of making car batteries for electric vehicles so it’s likely that demand will increase in the future.
What is nickel used for?
Nickel is an amazing metal and is valued for its anti-corrosion properties as well as being strong and high and low temperatures and special magnetic and electronic properties. It’s mainly used to make stainless steel but it also has other uses. Here are some of the most common uses:
- Stainless steel – this accounts for about 70% of nickel use.
- Lithium batteries for electric vehicles.
- Kitchen equipment
- Medical equipment
- Transport and buildings
- Power generation
- Jewellery
Pros and cons of investing in nickel
Pros
- Potential to benefit from price increases if demand continues to outstrip supply.
- Can be a good way to diversify your portfolio if you don’t currently invest in commodities.
Cons
- Prices are extremely volatile and they may fall back in the future. The price depends to a large extent on the ongoing situation in Ukraine and the ongoing sanctions against Russia.
- The best nickel mining stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.
13 nickel mining stocks to watch
We round up a selection of stocks in or related to the nickel mining industry, weighting the list more heavily towards popular mid- and large-cap US stocks.
- Sibanye Stillwater (SBSW)
- Materion (MTRN)
- Nickel Mines (NIC)
- Norilsk Nickel (GMKN)
- Canada Nickel Company (CNC)
- Poseidon Nickel (POS)
- WisdomTree Nickel (NICK)
- Vale (VALE)
- Jinchuan Group International Resources (2362)
- Glencore (GLEN)
- BHP Group (BHP)
- Red Rock Resources (RRR)
- Tesla (TSLA)
Compare providers for access to nickel mining stocks, ETFs and more
Table: sorted by promoted deals first
1 - 6 of 12
Finder Score for trading platforms
To make comparing even easier we came up with the Finder Score. Costs, features, ease and range of investments across 30+ platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the platform – simple.
Read the full methodologyBottom line
In times of stock market volatility, investors tend to see commodities, including nickel, as a safe investment. However the commodities market is currently subject to extremely unpredictable forces. Metal and commodity prices are likely to continue fluctuating significantly in the near future.
If you do decide to invest in nickel, then hold onto your hat. You could be in for a bumpy ride.
Finder survey: Would Brits consider investing in nickel stocks?
42% of people we surveyed said they already invest in nickel stocks or would consider investing in nickel stocks.
| Response | |
|---|---|
| I would consider it | 37.82% |
| Not sure | 34.32% |
| I wouldn't consider it | 23.25% |
| I already invest in this | 4.61% |
Source: Finder survey by Censuswide of Brits, December 2023
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