Nickel is a buy and a better inflation hedge than gold or silver

So I keep saying gold is not an inflation hedge because it is gold; rather, it is an inflation hedge because it is a commodity. So here is a look at the long-term real average nickel price [USD/ton]. This is much better than gold or silver. The current price of nickel is $16,418 and the long-term real average price has been $19,956.20. As I said a couple of days ago, gold is now about double its long-term average real value; silver, the average price in February 2024 is $23.27 compared to a long-term real average of $20.18. In other words, gold and silver are currently above their long term real average. But nickel is BELOW its long-term, real average. That, to me, is a buy signal, especially with inflation looming.

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Futhermore, you can buy nickel today for less than the commodity value of it by buying in the form of US nickel coins. At present, the melt value of a US nickel coin is $0.0543710. https://www.coinflation.com/unitedstates/

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is 108.74% of the face value. So when you buy a nickel, you make an instant $.004371 profit. To put it another way, you are buying 5.4371¢ worth of nickel and copper for 5¢. Smart.

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The left column below is the year, the middle column is the price of nickel in December of that year, and the right column is the middle column figure converted to today’s dollars via the CPI calculator at the BLS web site.

Year Average 2024

Closing Price

2024

2023 $16,375.00 $16,566.11

2022 $29,886.00 $31,248.30

2021 $20,880.00 $23,240.89

2020 $16,553.00 $19,721.07

2019 $13,950.00 $16,846.25

2018 $10,604.00 $13,098.19

2017 $12,705.00 $15,993.14

2016 $9,964.00 $12,897.28

2015 $8,780.00 $11,519.55

2014 $15,074.00 $19,921.70

2013 $13,832.00 $18,418.57

2012 $16,998.00 $22,974.30

2011 $18,724.00 $25,747.74

2010 $24,708.00 $34,982.98

2009 $18,452.00 $26,516.15

2008 $11,609.00 $17,136.51

2007 $26,010.00 $38,429.50

2006 $34,025.00 $52,323.30

2005 $13,372.00 $21,085.77

2004 $14,877.00 $24,260.22

2003 $16,583.00 $27,922.60

2002 $7,115.00 $12,205.47

2001 $5,858.00 $10,288.00

2000 $7,110.00 $12,680.56

1999 $8,425.00 $15,534.74

1998 $4,046.00 $7,660.64

1997 $5,980.00 $11,504.96

1996 $6,375.00 $12,473.70

1995 $7,892.00 $15,955.00

1994 $8,835.00 $18,314.83

1993 $5,250.00 $11,174.29

Average $19,956.20