Sprott Nickel Miners ETF

NIKL

Market cap $20.1M

Gold prices hit an apex in October before taking a breather as 2025 winds down — a chance for investors to buy the dip. This could be a golden opportunity to get exposure to a pair of ETFs before another rally ensues: the Sprott Physical Gold Trust (PHYS) and the Sprott Gold Miners ETF (SGDM).

The holiday season not only presents an opportunity to spend time with loved ones, it also allows investors to tilt their portfolios towards assets that can capture short-term upside. One of those is gold.

In cases where an asset is in the midst a strong rally, investors are typically gripped with the fear that they already missed out on the major move. That doesn't appear to be the case with gold, which should be approached with a strategic allocation strategy in mind as opposed to simply chasing gains.

The Federal Reserve's recent rate cut of 25 basis points could amplify gold's current rally. Prices have already broken through the $3,700 price mark, and another record high could hinge upon how aggressive rate cuts will be in the coming months.

The prospect of interest rate cuts this month and through the rest of the year is elevating prices for gold, but silver is also benefiting. The precious/industrial metal crossed the $40 price mark in the first week of September, which it hasn't done since 2011.

As acceptance for nuclear energy usage becomes more widespread globally, the infrastructure in which it operates is also evolving. The United States, for example, is looking towards smaller, more efficient reactors that require higher uranium enrichment.

Central banks' willingness to buy more precious metals should help buoy prices for both gold and silver. Around the globe, central banks continue to quench their thirst for both, providing investment opportunities in ETFs with exposure to both metals.

URA, DAPP, NIKL, BCOR and CHAT topped sector ETF gains in May, riding a broad market rebound on easing tariffs and strong tech earnings.

Nickel spot prices were higher the last month. Critical Raw Materials Act: EU funds 47 raw materials projects, includes 12 nickel projects. Nickel market news - Indonesia's nickel boom is forcing its own smelters to shut down. China to add cobalt, copper, nickel & lithium in boost to state metal reserves. Nickel company news - Vale produced 160kt of nickel in 2024, down from 165kt in 2023. Jinchuan Group International Resources issues a negative profit warning.

Nickel spot prices were lower the last month. Nickel market news - Nornickel: "Around 40% of all nickel producers are loss-making at the current price." Indonesia is considering policy to reduce nickel mining quota in 2025 to 150kt. Nickel company news - Nornickel nickel production in 2024 decreased 2% to 205 kt. Vale's nickel production was slightly lower in 2024 at ~160kt.