The New King Of Electric Cars
07/20/2018 7:07 PMTesla might have set the rules of the road when it comes to electric car manufacturing, but this monarchy isn’t going to last forever. There are plenty of challengers to the EV throne, and by 2021, according to new research from PA Consulting, Tesla will only be in...
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It’s Hard To Find Problems With Microsoft’s Q4 Earnings: The Street Weighs In
07/20/2018 6:43 PMMicrosoft Corporation MSFT 2.53% reported fourth-quarter earnings Thursday. EPS came in at $1.14 versus analysts’ $1.08 consensus estimate. Sales for the quarter also beat the street’s estimate of $29.22 billion by about $900,000. Microsoft’s earnings were “what a big...
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Oil Investors Look To Utah For Long-Term Riches
07/20/2018 1:40 PMThe rise in oil prices has resulted in relentless drilling and booming production in the U.S. shale plays, and the Permian in West Texas is attracting the most drillers, analysts, and media attention. But some bold wildcatters—encouraged by the higher oil prices—have...
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The Silver & Platinum Express
07/20/2018 1:33 PMBob Moriarty of 321 Gold discusses the relative prices of gold, silver and platinum and highlights two exploration companies, one with platinum and one with silver.
I’ve written about both Group Ten Metals (PGE-V) and Metallic Minerals (MMG-V) before. I’m going to group the two companies in one piece today for a number of reasons. The companies share management. One, Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTC), is a platinum/palladium company. The other, Metallic Minerals Corp. (MMG:TSX.V), is oriented toward silver in the Keno Hill silver district.
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Trump in Fresh Attack on the U.S. Dollar – Accuses European Union, China of Currency Manipulation
07/20/2018 1:30 PM– Dollar’s strength under fresh attack ahead of the weekend
– European Union, China accused of currency manipulation
– But there is little Trump can do to stop the Dollar’s ascent say analysts
– Seperately, Trump threatens to tariff all China’s imports
Ed Note: for the impact on markets that Trump’s attack has had check out ZeroHedge’s “Dollar Tumbles As Trump Blasts China, EU “Currency Manipulation”, Fed “Tightening”
US President Donald Trump has fired another salvo in what appears to be the start of a potential currency war by accusing the European Union, China, and others, of artificially massaging their interest rates and currency lower.
“China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S. is raising rates while the Dollar gets stronger and stronger with each passing day – taking away our big competitive edge. As usual, not a level playing field,” Trump tweet at 13:43 B.S.T.
The tweet sent the US Dollar lower allowing the Pound-to-Dollar exchange rate the chance to stage a climb back to 1.3062, having been below 1.30 just 24 hours earlier. The EUR/USD exchange rate menawhile rose 0.45% on the day to reach 1.1707.
The tweet builds on an earlier attack by Trump on the Dollar’s strength when he said in an interview he is “not thrilled” by the Federal Reserve’s ongoing interest rate hikes which are providing the key underpinning to a stronger US Dollar.
The Fed came in for another mention via a 1:51 P.M. tweet that came hot on the heels of that accusing the EU and China of manipulating their currency:
“The United States should not be penalized because we are doing so well. Tightening now hurts all that we have done. The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates – Really?”
The message from Trump is that the stronger Dollar is unattractive to him as he tries to improve the USA’s global trade performance, and the Fed is partly responsible.
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US dollar Strength Pounding Other Currencies
07/20/2018 1:17 PMThe strength of the USD is starting to become a lot more visible over the past 48 hours. In some countries, its looks as though currencies require a helping hand just to slow their downward spiral. In Japan the battle surrounding the Yen being a safe-haven or not...
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Backlash Grows Over Carbon Tax
07/20/2018 1:00 PMContrary to what some well known climate activists state - a carbon tax hurts economic growth. That's why the revenues collected from BC's original carbon tax were offset by reductions in personal and business taxes but that mode's been rejected by today's greedy...
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Signals vs. Noise in the Gold Market
07/19/2018 2:41 PM
In his book Nobody Knows Anything, my friend Bob Moriarty wrote about the difference between signal and noise. Unfortunately, much of the information in the gold space or what passes for such is really noise. Conspiracy theories around manipulation, price suppression and China are all too popular while important factors like real interest rates, investment demand and gold’s relationship to equities are neglected. At present the Gold market has experienced a critical breakdown yet in some circles a new theory and explanation is gaining traction.
Last week more than a handful of subscribers alerted me to Jim Rickards’ belief that China has pegged the SDR (an IMF reserve currency) Gold price from 850-950 SDR/oz and this is what is impacting the Gold price. Rickards writes that the peg is too cheap given the scarce supply of Gold and that the IMF will print trillions of SDRs during the next global financial crisis. It’s a signal that China is betting on the SDR and Gold, he says. He also tweeted that at the Sprott Investment Conference he would present the evidence of the new gold standard at 900 SDR/oz.
First, the supply of Gold is not scarce. The supply of Gold actually grows in perpetuity because Gold is not consumed like other commodities.
Second, let’s look at the chart of the Gold price in SDRs, kindly provided to me by Dan Popescu. Sure, it has traded from 850 to 950 for the past 18 months but that does not imply a peg or some behind the scenes price management. Everyone following precious metals knows the market has been locked in a very tight range for many months.
However, technically speaking the Gold price in SDRs has broken down from a large, bearish consolidation and the implication is price will continue to trend lower. I expect it will test that low at 840 and ultimately trend towards its 2014-2016 lows before its next bottom.
It is an ominous looking chart (above) and so is this one (below).
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Is This the World’s Largest Robot?
07/19/2018 2:24 PMRio Tinto has employed the first fully autonomous train, which many are calling the world’s largest robot. Rio Tinto’s project has eliminated humans and that saves on pensions and salaries. This is the way of the future because of exponentially rising human costs. The...
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A Giant is Waking, With Humongous Profits Ahead
07/19/2018 2:11 PMMan, I love catching a big move early. And there’s a metal that is just making a turn out of a long, brutal bear market right now.
It’s not gold. It’s not platinum. Nope, this metal glows in the dark.
It is still moving slowly, like a giant rousing from a deep slumber. Investors who hop aboard this giant now stand to make humongous profits.
I’m talking about uranium.
Uranium has rallied more than 12% from a low it hit in April. You might remember that was when I started pounding the table about this white-hot energy metal.
Recently, uranium was at $22.95 per pound, as you can see from this chart …
Is that the end of this rally? Heck, no! As this longer-term chart shows, uranium can get a lot more expensive, and in a hurry, too.
I expect uranium could rise to $40 a pound in a hurry. And from there, well … this sizzling metal did soar to over $140 a pound in the last bull market.
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