Kitco Mining, Released on 5/24/24

Nickel prices took a steep dive early this year due to oversupply, but the market should come back, said Rick Rule, president and CEO of Rule Investment Media and former head of Sprott. This week Rule recorded an episode of Green Rush with Matt Watson, founder of Precious Metals Commodity Management LLC. Nickel prices were nearly halved from highs set earlier this decade, bottoming at about $15,000 a ton. The metal has seen a recent lift due to political turmoil in New Caledonia, a major supplier. Nickel tumbled due to two factors. Russia, which is a major producer of nickel, has been selling the metal to prop up its war effort, noted Rule. The mine built by the Chinese in Southeast Asia has been strong, but production could be slowed. Rule saw the mines up close. “I had the opportunity to view from the air the incredible environmental destruction that is being wrought by nickel production,” said Rule. “My suspicion is that this form of production will increase for probably a year or a year and a half. But then, my suspicion is that the political pushback in both the Philippines and in Indonesia will cause those respective governments to insist on extraction practices that are less environmentally destructive and more expensive.” The other critical metal that has fallen out of favor is lithium. Rule says he likes beaten down metals. “Lithium had such an extraordinary narrative associated with it that a lot of people who were attracted to the upside associated with batteries didn’t understand the fundamental economics of lithium,” he said. “As a contrarian investor, there’s nothing I love as much as hate.”

0:00 – Rick Rule origin story
3:38 – Lithium market
7:03 – Direct lithium extraction
8:30 – Nickel market
13:58 – China and rare earth
17:21 – China reforming rare earth markets
23:50 – Government electrification strategies
28:57 – Nuclear build out

Rick Rule, founder and chairman of Sprott Global Resource Investments Ltd., began his career in the securities business in 1974. He is a leading American retail broker specializing in mining, energy, water utilities, forest products and agriculture. His company has built a national reputation on taking advantage of global opportunities in the oil and gas, mining, alternative energy, agriculture, forestry and water industries. He is also the founder of Rule Investment Media.

  commodities, investing, lithium, metals, nickel