Five Things to Know About Nickel’s 90% Price Surge
Most importantly, there’s no need to panic — there’s a supply boom underway and this spike is unlikely to last.
That’s quite a jump.
Source: Bloomberg
It’s not often that any markets see a contract nearly double in value in the space of a day — but that’s what happened with nickel traded on the London Metal Exchange Monday, with a 90% jump that went as high as $55,000 a metric ton before closing at $48,078. Things went even wilder on Tuesday, rising as high as $100,000 — nearly quadruple the price last Friday.
That sounds dramatic, but it’s unlikely that you’d notice the ripple effects of this in the wider economy over the year ahead, and prices driven by a short squeeze of this sort tend to calm down rapidly. The rising cost of nickel won’t hit your hip pocket the way that the price of oil or wheat may well do. Here’s why: