First Nickel Inc. FNKLF

RE: on Kitco

[marketminer]

Is the US dollar worth as much as it was back in 2005 Does it still cost the same to produce Ni as it did back in 2005 Is the demand the same as it was in 2005 Are China and India going to stop development.... I guess if the Taliban have their way, the whole middle east would return to the stone age. How about new mine production.. has it ramped up, or are they still in feasability studies. The simple fact is that as metal prices pick up, scap that was marginal comes into the system... as it did with copper... but that extra supply is a short lived event and just gives a short term supply spike. These scrap inventories come into the system quickly... IE stainless scrap increased into the system. Usually these are short bursts. Like the pig iron blip. There will be a balance achieved where Ni will stabilize. This is a functon of the price levels where someone who is willing to compromize for another product or pay for NI... That being the case for pig iron.... inferior product but cheaper..... will every customer accept an inferior product.... I dont think so.. How about the Ni cad batteries.... will pigiron batteries work... Fact is Nickel is nickel and in many applications there is no alternative. I think the price will stabilise in the $15.00 range...JMHO I just read an artical yesterday where producers of stainless were reducing their inventory of Ni to be replentished as the Ni price corrects.... so we likely will see an oversold, then a return to the norm...JMHO My bigest concern is the Cnd dollar to US dollar relationship.... this is stripping profit from every sector including Ni and every other product produced in Canada... won't be long before it Busts the cnd economy... one more rate increase and it's bust for this relationship.... then the BoC will be scrambling to backtrack and drop intrest rates as the economy tumbles....JMHO