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Does Gold Still Have Some Room To Run?

In the 1960s, French politician Valéry d’Estaing complained that the United States enjoyed an “exorbitant privilege” due to the dollar’s status as the world’s reserve currency. He had a point.

Because the dollar is the world’s currency, the US can borrow cheaper than it could otherwise (lower interest rates), US banks and companies can conveniently do cross-border business using their own currency, and when there is geopolitical tension, central banks and investors buy US Treasuries, keeping the dollar high and the United States insulated from the conflict. A government that borrows in a foreign currency can go bankrupt; not so when it borrows from abroad in its own currency ie. through foreign purchases of US Treasury bills….CLICK for complete article

Last night, when observing the unprecedented “gold run” on precious metals dealers which has left all gold vendors with little to no physical gold, we said that “the price of physical gold has decoupled from paper gold” as a result of paper gold liquidations as leveraged funds scramble to cover margin calls using safe assets resulting in an arbitrage that physical gold buyers, i.e., those who don’t have faith in gold ETFs such as the GDX or simply prefer to have possession of the metal, find especially delightful as it allows them to buy physical gold at lower prices than they would ordinarily have access to.

However, we also noted that whereas in the past such conditions were self-correcting, this time it is not only a record surge in demand for physical gold but also a near shut down in supply as the most productive gold refiners, those located in the southern Swiss town of Ticina, namely Valcambi, Pamp and Argor-Heraeus, now appear to be offline indefinitely….CLICK for complete article

Gold price plummets again – down $172 for the week

Gold is headed for its worst two-day drop in history as pandemic panic grips global financial markets.

Gold for delivery in April come close to crashing through the $1,500 level on the Comex market in New York on Friday, down $86 an ounce, or 5.4% from yesterday’s closing price of $1,590.30 an ounce. By the close on Friday, gold pared some of those losses, closing at $1,520.

Contracts representing 52 million ounces of gold had exchanged hands by the close after a week of heavy selling. Gold is down more than…click for full article.

Tesla Plans To Ditch Cobalt In New Batteries

Reuters recently reported on Tesla’s announcement that it is in advanced talks to use batteries from China’s Contemporary Amperex Technology Co Ltd (CATL) that contain no cobalt specifically for use in cars made at Tesla’s Shanghai plant.

The statement went on to say as a result of using CATL’s lithium-iron-phosphate (LFP) batteries, Tesla would be able to substantially lower the cost of those cars using the alternative battery technology, as cobalt is the most expensive component in traditional nickel-cobalt-aluminum (NCA) and nickel-manganese-cobalt (NMC) batteries.

The statement, however, did not say what the impact of the alternative batteries would be on…click for full article.

Copper Mountain cuts targets amid market rout, virus fears

Canada’s Copper Mountain Mining (TSX: CMMC) (ASX: C6C) became on Tuesday the latest company to adjust plans due to ongoing markets collapse and near-term copper price uncertainty as a result of the rapidly spreading coronavirus panic.

The Vancouver-based miner has revised its mine plan and schedule for its flagship asset, the Copper Mountain project in British Columbia, deferring a $22 million capital spend by…click for full article.

Is gold the answer to Monday’s market troubles?

Analysts double down on metal’s safety allure

(Kitco News) Analysts are doubling down on their comments that gold’s safe-haven appeal is the winning asset amid growing coronavirus fears, an oil-price crash and an equity market correction.

Goldman Sachs kicked things off last week when it said that gold “is immune to the virus.”

“While so much about the current environment remains unclear, there’s one thing that isn’t: gold, which—unlike…Click for full article.