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Investing in Russian Nickel
Russia recently announced a doubling of gold reserves at its Sukhoi Log gold deposit in Eastern Siberia. The value of the deposit, using today’s price of gold, is around $49.64 billion.
Now Russia’s waiting for a crucial law to pass that will limit foreign participation in developing certain fields, i.e., oil and gas fields, and this Sukhoi Log gold deposit.
That means Russian companies are already jumping on the short list to grab some blocks of this deposit. One, of course, is the nickel behemoth, Norilsk Nickel (NILSY.PK) (NNIA:XETRA).
As you can see, over the past year, Norilsk has been performing incredibly well. But don’t jump in just yet. The stock has been moving in a clear wave-like pattern and, judging by the quick rise, it’s just had since mid August, Norilsk is due for a drop.
Investing in Russian Nickel
I’m looking for a rounding over, and a possible 19% drop over the next month and a half. That would take the pink sheet listing from $278 to $222.
The new law won’t even be voted on by parliament before the end of the year. If you’re considering getting in on Norilsk, do yourself a favor: Wait for the dip.
S.R. Nunnally
Editor, Commodities and Resources Report
Taipan Financial News
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