What Just Happened to NICKEL prices? Foreshadow of What's To Come?
The London Metal Exchange on Tuesday suspended the trading of nickel after prices more than doubled to surpass $100,000 per metric ton. The LME said in a statement that trading will be suspended for at least the remainder of the day.
When People Get Spooked
It's a well known fact that Russia supplies a lot of nickel to the other nations, even 10% of the world supply comes from Russia.
I'm going to speculate a lot in this article, the information here is my opinion based on facts and is not financial advice. I am not a financial advisor, please invest at your own risk.
Nickel is a critical component for stainless steel and electric vehicle batteries. Supplies are at it's lowest since 2019. With the Russian invasion of Ukraine, nickel prices have skyrocketed from around $20K /metric ton to over $100K /metric ton.
Is this price indicating real-world values or is it simply a fear-based pump scam?
Nickel Trading Paused
The London Metal Exchange paused trading on nickel, suspending it's value around $80K, still 4x it's normal trading price.
Criminal: suspending free trade, canceling trades and hiding prices!!! Really???
How high did nickel REALLY go? We are not allowed to know. Just that it's more than $80K.
How Much More with Precious Metals
Watch nickel closely, as this is is a hint of what will eventually happen when "unprecedented movements" happen with other metals, especially precious metals.
But there are some big differences.
Nickel is not a precious metal, it's traded in metric tons, where as precious metals like gold and silver are traded by the oz. We see that metals can rocket up suddenly if circumstances are right. Going from $20K to $100K is a 5x jump in a single day.
That would be like HIVE suddenly jumping to $5.00 overnight.
If silver suddenly went up 5x, we'd be seeing $135 silver before trading is cut off and trading prices are hidden.
Demand for Silver is Higher than Demand for Nickel
The primary use of nickel these days is electric vehicle batteries. This is what happens when there is a push to "go green", but supply becomes shut out. High demand, low supply and a sudden political shock is the perfect combination to cause a physical asset to skyrocket.
How much more will silver go up by multitudes than nickel? This is a preview of things to come - the silver explosion is on it's way.
Fake Silver
We already know silver is in high demand, low supply, but ETFs (exchange traded funds) are causing the price to remain artificially low. Many believe that silver ETFs are mostly UNBACKED by physical silver, since holders have to wait for MONTHS before receiving their physical AG.
Can you imagine having to wait MONTHS to withdraw money from the ATM?
People holding ETF's think they have a real silver investment, but it's fakey fake fake fake.
It's the CNN of silver investing.
A Funny Thing
If there were ever a sudden jump in demand for silver (like we're seeing for nickel) we would see a funny thing happen.
It would begin with a price DECREASE, as many EFT holders dump their paper. Meanwhile others will try to take physical possession of their purchased silver. Once it becomes widely known that physical possession is impossible (since the bank vaults are empty) people will dump their EFT even more, causing the silver price to plummet even further.
PANIC DUMPING.
Why would something in such high demand go DOWN in price? Because it's represented with unbacked paper that people are unloading as fast as they can.
In the Real World: Silver Holders Cash In
Some silver dealers will be fooled by the silver "price" plummet and sell physical silver at extremely low prices, they will either run out of inventory or have to raise their premiums, while savy silver sellers will immediately add massive premiums to their silver.
Here's an hypothetical situation:
The "official" silver price is $8, but to purchase physical silver would be $160.00/oz ($8 + $152 premium)
Ridiculous, I know, but that's what happens when a real market is saturated with FAKE assets. Until the two are separated, demand for the real will rocket up, demand for the fake will eventually go to zero.
Separating Fake From Real
Someday, the offical market will have to acknowledge that paper or electronic EFT's are worthless once physical possession is taken of most if not all of the silver. Whoever is left holding the EFT after the vaults are emptied, will be put on a waiting list (upwards of YEARS). Who is going to hold on to an EFT like that? They'll drop it like a hot potato.
But those who have been smart enough to stack physical silver, can weigh their wealth in their hand. There will always be demand for PHYSICAL silver and if it becomes scarce, people will be willing to trade great value for them.
Silver By Weight is REAL
Will renters accept silver by weight to pay rent? Maybe. Will utility companies accept silver by weight to settle accounts? Maybe. Will there be silver exchangers at the gates of the supermarkets someday? Maybe.
Yes there are a lot of maybes, but what's not a maybe is that a new (real) financial system is coming after the destructing of the old (fake) financial system.
The enemy hides the truth, until the enemy is in control, then he "releases" a measure of the truth to gain further power. The enemy has successfully created a fake economy with fake money - once he's in charge, he will create a real economy, so he can be the savior.
Physical assets are a way around any new financial system, as long as people are willing to TRADE for silver, even if it's deemed illegal.
Would you be willing to be paid in physical silver for your goods and services? Now only some people would say "yes", someday an overwhelming number of people will excitedly say "yes".
Conclusion
The moonshot we're seeing in nickel may be a hint of what is to come with silver. ETF Trading will be suspended, orders will be closed, prices will be hidden from the public.
Once trading begins once again, we'll see what happens. Keep an eye on nickel tomorrow to see if the price goes back to $20K or if $100K+ will be the new nickel normal.
I want my nickel back!
Benjamin Turner: God fearer. Rooted in Messiah. Husband of @lturner. Father of SIX (!!!) wonderful children. The guy behind the camera. Blockchain enthusiast.
Bless the Most High!
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