I'd like to argue slightly differently (and not just for the sake of it).
WSA sp has actually done VERY well since the QR release, surging and holding nearly 10% gains while base metal stocks have generally retreated 5 to 10%, eg IGO and MCR 10% or so.
As for getting out of nickel - not for me. Instead this time round post the last bubble collapse I am only interested in the best, and for nickel to be a much more modest position in my portfolio than the 50% or so it got to in the last bubble. I'd be in WSA now if I wasn't already up to my neck in IGO.
The fact of the matter is that over the decades huge fortunes have come out of WA nickel mines. Although very cyclical, across the cycle the best do extremely well.
But yes I too have been preaching idle capacity, which will put a cap on pon, or else lead to a mini- bust after a mini-spike. Hard to be buying nickel stocks atm with the high pon, but taking a longer view still good imho to stay in the best for the exploration successes. Exploration being the key with both IGO and WSA otherwise pretty fully priced imo. [Of course IGO is now effectively 50% a gold company, and 40% hedged on the pon for 2 1/2 years - which hedges my nickel position somewhat].
If you are taking the long view then imho it has to be quality you go for. Just look at the way MCR has struggled through the past 5+ years working at the margins (and with solid management).
EL
WSA Price at posting:
$6.47 Sentiment: LT Buy Disclosure: Not Held
