Spot nickel poised for large gains???
Posted:
Fri Nov 09, 2012 12:06 amby slvrbck
Any of you chartists/market geniuses have any input? The charts seem to be really pointing in an uphill direction soon to me. How to profit??? Canadian Ni premiums are too rich for me.
Re: Spot nickel poised for large gains???
Posted:
Sun Nov 11, 2012 7:59 amby ZenOps
Nickel plays differently than the other coin metals.
Silver and gold are arguably levered 100:1 paper:physical on the open market. Meaning that anytime you have a big market selloff (like people trying to avoid the fiscal cliff) those tend to drop the hardest. Copper is more around 10:1, but is primarly used as collateral by the Chinese market for gambling on other things.
Nickel is arguably 5:1, which makes it quite a bit more unique. I wouldn't say its immune to a paper market crash, but even so - in a physical world, it may be easier to get two ounces of gold at spot in a crash situation, than $8 FV worth of US nickels - From a realists viewpoint anyhow.
The metal that is traded at closest to 1:1 is the metal that the market has decided is the most like "money" at any given point in time. Gold was much closer to 1:1 back in 1933, Silver in 1964. The US desperately tried to make 8.1 grams of copper into a dollar, but it failed miserably.
Just some thoughts.