How to invest in nickel in 2023

Nickel is an essential metal for many of the world’s largest industries and its demand has grown in recent years. This page explains how you can invest in nickel.
Updated: Mar 23, 2023

Our commodity experts have researched the nickel industry and this guide teaches you how to invest in this precious metal. Read on to learn more about nickel, what drives its growth, and the best brokers to use to buy it. 

Where can I invest in nickel online?

The best place to invest in nickel is with an online broker. Not all brokers offer nickel investing, but our commodity experts have found some of the top places around that do. Click any of the links below to register in just a few minutes.

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Why invest in nickel?

There are many reasons why you may want to invest in nickel. Its rising demand and use in batteries mean its price will likely rise in the future. Here are some of the main reasons why nickel could be a good investment. 

  • Growing demand. Nikel has a variety of uses and is a key component in the production of stainless steel. Stainless steel is used in many applications, including construction, transportation, and manufacturing. The demand for steel, and consequently nickel, will increase as the global economy grows. 
  • Limited supply. Nickel is abundant in the Earth’s crust. However, the process of mining and refining nickel is complex and costly. This has resulted in only a few nickel mines worldwide, meaning a few companies control its supply. 
  • It is used in batteries. Nickel is an essential component in producing batteries used for electric vehicles. As demand for electric vehicles grows, so will the demand for nickel. 
  • Diversify your portfolio. Nickel is a top way to diversify your portfolio and include a commodity that’s not only in demand but expected to appreciate in price over time. It can also be used as a hedge against inflation – Inflation is when money loses its value over time. Precious commodities tend to rise when inflation rates rise, making them a good hedge against it. 

5 top tips for investing in nickel

We have broken down this process into some easy-to-follow steps for your convenience. Read through to understand how to get involved in investing in nickel.

1. Decide on an investment strategy.

Without a plan, any investment is destined for failure. So, it is important to create a clear strategy before getting started. Consider things like whether you want to be active or passive, and take into account how much experience you have. 

2. Do your research.

The nickel industry is idiosyncratic, so you need to do sufficient research to understand it before investing. From reading the latest commentary by analysts to watching informative videos online, take in all the information you can and ensure it is from a trustworthy source.

3. Set a budget

Without a budget, things can quickly get out of control. Setting one ensures there is a level of oversight, allowing you to take calculated risks without gambling your entire savings.

4. Choose between the long term and short term.

Some investors like to put their money to one side and return for a profit years later, whereas others like to trade with it to get returns faster. Both of these methods can be effective ways to generate money with nickel, and it really comes down to personal preference and how much free time you have on your hands. 

5. Find an investment platform.

You won’t find nickel assets on every online brokerage, so it is important to shop around. In addition, you should make sure the platform you opt for has reasonable fees and proven reliability. Click the button below for our top picks. 

Ways to invest in nickel

You can use many methods to invest in nickel, and the right approach will depend on your requirements and goals. Here’s a look at the various ways you can invest in nickel. 

Invest in nickel stocks

Investing in stocks is one of the easiest ways to invest indirectly in nickel. You can invest in nickel stocks using most online brokerage firms. Nickel stocks tend to belong to mining companies, and the value of your investment will rise and fall in line with the price of nickel. 

Invest in nickel ETFs

To take a broad approach to invest in nickel, you can use an exchange traded fund (ETF). Nickel ETFs give you diversified exposure to the nickel market and you’ll find different options available, from a selection of mining companies to investing in physical nickel. 

Invest in nickel mutual funds

Mutual funds are very similar to ETFs and the main key difference is a professional manager manages mutual funds. Funds are an excellent choice if you’re a beginner or know little about the nickel market, as you can use the expertise of a professional. 

Invest in nickel futures

Futures are a way to speculate on short term price changes in nickel. Using futures to speculate on nickel is complex and best suits those with experience. A futures contract is simply an agreement to make a trade at a specific price and date in the future. 

How does the nickel market work?

It works like most other markets, where supply and demand determine its price. Although many factors impact nickel’s supply and demand, we’ve highlighted a few of the most important ones below. 

  • Supply disruptions. A limited number of nickel mines worldwide makes the market very vulnerable to supply disruptions. Things like labour strikes, political instability, and even natural disasters can significantly impact the nickel supply. 
  • China. The Chinese market is very important for the price of nickel. Most specifically, the Chinese steel industry greatly impacts the demand for nickel. If China continues to build at its current pace, its requirement for steel will continue, which will help the price of nickel. 
  • The battery market. Batteries, especially those that are in electric vehicles, require nickel. The electric vehicle market is growing rapidly, and as more governments worldwide shift to greener transport, the demand for nickel will increase. 

When should you invest in nickel?

You could consider investing in nickel when the market fundamentals are in favour of future growth. This means you should look at factors like supply and demand, production levels and, global economic conditions. It is also important to track the electric vehicle and construction markets, as those industries heavily rely on nickel. 

You should always remember that commodities such as nickel can be volatile and its price can change very quickly. Hence, it’s a good idea to diversify your portfolio with other assets to spread your risk. 

Is nickel a good investment in 2023?

Yes, it could be, but there are a few factors that you need to consider before investing. The Russian invasion of Ukraine has made the commodity market very volatile, so keeping track of developments is very important. 

The global economy is also struggling, and many experts suggest recessions are on the horizon. This could help your investment to nickel if you can get in at favourable prices. 

What should I do now?

Now that you know more about nickel, you may want to consider investing in the metal. To do so, you’ll need to use an online broker and you can click the blue button below to go to our top recommendations to buy nickel now. It’s also a good idea to stay up to date with the latest news and developments, which you can do on any of the links below.

Latest nickel news

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Sources & references
Risk disclaimer
Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.