Nickel. The iPath DJ-UBS Nickel SubTR ETN is the most widely traded pure Nickel ETF. It aims to track the performance of a nickel futures position that is not leveraged.
What are my options for investing in nickel?
Find out what nickel-related investing opportunities are available through your broker. Stocks in nickel mining firms, commodity futures, and specific exchange-traded funds, or ETFs, are examples of these alternatives. Investment alternatives range per brokerage, and certain techniques may necessitate opening a new account with a different firm.
Is there a precious metals ETF from Vanguard?
Gold funds give investors exposure to the commodity without the burden of having to take delivery of or deliver physical gold assets, as is generally required in the commodities futures market. Gold funds can be used to protect against geopolitical risk and interest rate volatility.
Vanguard does not have a pure gold fund, but it does have a fund that invests around a quarter of its portfolio in precious metals and mining firms, giving it indirect exposure to the market: the Vanguard Global Capital Cycles Fund (VGPMX).
Who provides nickel to Tesla?
MELBOURNE, Australia, October 13 (Reuters) – Prony Resources announced on Wednesday that Tesla Inc (TSLA. O) has agreed to buy roughly 42,000 tonnes of nickel in a multi-year arrangement, positioning the New Caledonian miner as a main nickel supplier to the American electric car company.
Where does Tesla obtain its nickel?
Tesla CEO Elon Musk has been pressing nickel producers to increase production over the last year, predicting that the resource will become a bottleneck for battery production.
It’s most likely why the automaker decided to get involved, since one of the world’s largest and most contentious nickel mines is up for sale.
New Caledonia is a small French territory in the southwest Pacific Ocean that is thought to own up to 25% of the world’s nickel reserves.
They bought the mine in a multibillion-dollar acquisition in 2007 with the goal of increasing production to 40,000 tonnes of nickel per year.
However, disagreements with locals have resulted in sabotage and environmental spills as a result of the project’s usage of high-pressure acid leach (HPAL) technology.
Vale lost money on the mine because output was erratic and the mine’s future was uncertain.
The corporation has been looking for a buyer for almost a year, but the sale is divisive in a country that has been discussing independence from France and relies heavily on nickel for its prosperity.
They ultimately reached an agreement earlier this year for a coalition of mine employees, three regional provinces, and the Singaporean commodity trading giant Trafigura to take over control of the mine.
Tesla was mentioned as a partner in the project at the time “The automaker is anticipated to assist with product and sustainability standards at the mine as part of a “technical and industrial relationship.”
As part of the arrangement, the automaker was supposed to receive a portion of the mine’s output.
The partnership is now known as Prony Resources, and they announced today that Tesla has committed to buy practically all of the mine’s increased nickel output.
“Tesla Inc agreed to buy about 42,000 tonnes of nickel from Prony Resources in a multi-year contract on Wednesday, making the New Caledonian miner a main supply of the metal to the American electric vehicle company.”
By 2024, the new company plans to produce 44,000 tonnes of nickel, more than twice what Vale intended to produce this year.
We previously reported on Tesla cofounder JB Straubel’s warning about impending nickel shortages as a result of the transportation industry’s move to electric vehicles.
Is it possible to buy nickel futures?
You can profit from a rise in nickel price by establishing a long position in the nickel futures market if you are optimistic on nickel. You can do this by purchasing one or more nickel futures contracts on a futures exchange (going long).
Example: Long Nickel Futures Trade
At a price of USD 10,100 per tonne, you decide to go long one near-month LME Nickel Futures contract. The value of each LME Nickel Futures contract is USD 60,600 since each contract represents 6 tonnes of nickel. To initiate a long futures position, you will only need to deposit an initial margin of USD 14,400, rather than paying the whole contract value.
Assume the price of nickel rises a week later, and the price of nickel futures climbs with it to USD 11,110 per tonne. Each contract now has a value of USD 66,660. So, by selling your futures contract now, you can earn USD 6,060 on your long position in nickel futures.