nickel breaks us $12.50 per lb, page-2

Hi tiger,

I agree with you that WSA is making a lot of money right now and also do believe you will have some good dividents coming your way.
But the outlook of Nickel seems rather gloomy as more and more Nickel projects come back on steam this year.

Some believe that the Nickel price will fall because of this, although this has been said before.

I have been riding the Nickel boom before and I am very carefull not to get involved in another fall of the Nickel price.

Todays high price may be the reason of higher demand because of growing world economies or/and the price of coal that makes it harder for Pig iron to jump on the bandwagon.

But we know very well that under normal circumstances pig iron would jump in and keeps the price capped around the $11 or so.

Because of the outlook of outlook of Nickel regarding more nickel mine coming into production this year, and having see the price collapse before, I have moved out of Nickel for now.

The pig iron nickel production has also taken much of the shine out of Nickel as they will cap the price.

So maybe this is the reason why WSA can not break loose.

But writing the above, nothing is sure with nickel we have seen that before and higher demand may well push prices up and I may well regret my decision.

I do believe that WSA is a first class company and it would be hard to find a better company pm the ASX to invest in if you like Nickel.
And being such a low cost producer they certainly will not go broke with a lower Nickel price.

But please do your own research as I could be totally wrong.

jojo