It has been a roller coaster ride in the global financial markets in 2020. The leading stock benchmarks have performed like a yo-yo, starting off the year inching toward record highs and then crashing 20%, only to return to all-time highs. With accommodative monetary policy and aggressive fiscal stimulus spending, how will the stock market perform next year? It is anybody’s guess at this point.
The nickel stocks market may not be the most exciting investment opportunity, especially when all the money is being poured into gold, silver, and copper – or, to a certain extent, palladium. With the right strategies, some good timing, and a little bit of luck, nicke investing can be just as lucrative for investors – novice and seasoned.
Metal commodities have been one of the assets to enjoy a wave of momentum since the market meltdown in March. Gold, silver, copper, and other metals have popped, enjoying their best performances in many years. Whether it is a safe-haven play or rebounding industrial demand, investors are bullish on this asset class.
You can add nickel to the list of top metal performers, trading at around $1,200, thanks to rising foreign demand, a booming electric vehicle market, and a rebounding post-coronavirus Chinese economy. The boost in nickel prices has, of course, led to a huge rally in several mining stocks in North America and abroad. But what are they?
Here are the seven best North American nickel mining stocks:
Stock #1: Talon Metals
- Oct. 30 Closing Price: $0.28
- YTD: +87 per cent
Talon Metals has been on a roll since 2020 with their nickel mining stocks performing strongly month after month. That’s why Talon Metals is considered one of the best nickel stocks to invest in right now. The penny stock has seen a tremendous surge this year, especially in the third quarter when it advanced 12 per cent. But what could Talon Metals test by year’s end and heading into 2021? It depends on how bullish you are.
Stock #2: Canada Nickel Company
- Oct. 30 Closing Price: $2.01
- YTD: +408 per cent
While it is best to avoid pouring your investment into a company that has rallied triple digits in a single year, Canada Nickel Company remains at a competitive price, with a lot more upside than downside. With market analysts anticipating even higher nickel prices over the next 18 months amid a global economic recovery, Canada Nickel Company could be a top beneficiary of this upward trend.
Stock #3: FPX Nickel
- Oct. 30 Closing Price: $0.48
- YTD: +219 per cent
It has been a rough couple of months for FPX Nickel, but 2020 has still been kind to FPX Nickel. Although it is below the 52-week high of 68 cents, FPX Nickel is expected to maintain the gains, especially with Beijing continuing to import an enormous level of the industrial metal. Some investors may be shy on hitting the buy button because there was a 20 per cent correction in October, but this could serve as a tremendous buying opportunity.
Stock #4: Tartisan Nickel Corp
- Oct. 30 Closing Price: $0.23
- YTD: +122 per cent
Tartisan Nickel Corp has also been a stock that has witnessed a ten per cent correction over the last month, despite its incredible 100 per cent rally year-to-date. At 23 cents, shares in this penny stock could be viewed as a reasonable discount, especially considering that its 52-week high is 47 cents.
Stock #5: Glencore
- Oct. 30 Closing Price: $2.01
- YTD: -34.53 per cent
Glencore is an interesting stock, mainly because of its diverse array of investments in the entire metals market. Plus, despite being a penny stock, it offers a penny-a-share dividend, which is always a cherry on top in the world of investing. Unlike the other stocks on this list, it has plunged double digits this year. But there is a lot of upside in Glencore that makes it a reasonable play for any portfolio.
Stock #6: Sienna Resources
- Oct. 30 Closing Price: $0.075
- YTD: +150 per cent
Sienna Resources has advanced mainly on speculation over the developments in lithium-ion. Tesla Motors’ Elon Musk has been encouraging companies to increase their nickel mining capabilities to help satisfy the electric vehicle battery demand. Although many say that Tesla’s recent unveiling was a disappointment, Musk has proven the broader market wrong time and again, which is good news for the nickel industry.
Stock #7: iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN)
- Oct. 30 Closing Price: $60.22
- YTD: +11 per cent
Do you want to avoid investing in a particular stock and just have access the broader nickel market? Perhaps the iPath Series B Bloomberg Nickel Subindex Total Return ETN is something to consider.
“The Fund seeks reflect the returns that are potentially available through an unleveraged investment in those contracts plus the rate of interest that could be earned on cash collateral. Its return is linked to Bloomberg Nickel Subindex Total Return designed to be a benchmark for nickel as an asset class.”
Year-to-date, the ETN is up 11 per cent after plunging 25 per cent at the height of the pandemic-induced market crash.