3 Metals to Watch For - 3/4

The second metal to watch out for is: Nickel.

Nickel is used to make stainless steel, so it's found in everything from cutlery to microwaves to skyscrapers. Plus, it can be found in a range of other products like batteries, coins, & magnets. Nickel has jumped more than sixfold in the past five years as supply failed to keep up with demand. Recently, there was less than two days of global consumption in stockpiles!

Again, China is behind much of the nickel story — the country's stainless steel production soared 68% last year! In fact, China overtook Japan as the world's largest producer of stainless steel & the biggest consumer of nickel.

So have investors missed the nickel boom? I don't think so! Remember, China's consumers are just starting their shopping sprees. They'll probably use up all the nickel the world can produce.
A researcher at China's Ministry of Land & Resources information center recently told a conference in Shanghai that demand for nickel in China may rise 62% by the end of the decade.
And research firm Canaccord Adams recently forecast a nickel supply deficit of 13,000 tonnes this year, a deficit of 28,000 tonnes in 2008, & a shortage of 17,000 tonnes in 2009!

In short, the market should be able to absorb any new supply for at least the next three years. So, yeah, I'm bullish on nickel! And I'm especially bullish on the small-but-growing nickel producers in Canada & Australia that are going to feed China's ravenous demand.

Conclusion: Don't miss out on this nickle bonanza!