Peter Krauth discusses Warren Buffett's big move into gold and discusses why the price of the metal is likely to climb much higher.Warren Buffett has long been known as one of the biggest gold-haters around. Yet in one move he's helped gold go mainstream.The "Oracle of Omaha's" about face could be the ultimate Buy Signal.For millions of investors, seeing Buffett dump banks while buying gold is lik...Read More
"Powerful Deflationary Winds" Include a "Bust in Commodity Prices"Elliott Wave International's analysts have posited that the next big global monetary event will be deflation, not inflation.The writer of an August 18 Telegraph article also sees "powerful deflationary winds." Here's an excerpt:Talk of resurgent global inflation is mostly noise. Powerful deflationary winds continue to blow through t...Read More
When I founded BMG Group Inc. (formerly Bullion Management Group Inc. – BMG) over 20 years ago, I thought that my main challenge would be to get approval for our first fund from the Ontario Securities Commission (OSC). My premise was that there was no approved way for retail investors to hold bullion in their RRSPs and other registered accounts. In addition, I wanted to structure the fund in...Read More
It could have been. But what is more likely, itcould have been the final pre-plunge top in case of the mining stocks. Why?Because the history tends to rhyme, and the verses appear more similar to whatwe already “read” in the mining stocks than they what we can see on the goldmarket.Before digging into details, we would like to quotewhat we wrote on mining stocks on Monday:Backin March,...Read More
A Fibonacci .618 retracement is a common reversal point in the markets Fibonacci numbers follow a sequence that begins with 0 and 1, and each subsequent number is the sum of the previous two (0, 1, 1, 2, 3, 5,8, 13, 21, 34, and so on).After the first several numbers in the sequence, the ratio of any number to the next higher is approximately .618 to 1; its ratio to the next lower number is approx...Read More
The story of how an inner city liquor store grew its business serves as an example of what sector expert Michael Ballanger calls " a compelling revelation of 'academics versus practicality.'"In watching the travesty of disinformation, misinformation and moral hazard formation ongoing in the global financial markets, I am immediately reminded of a case study from my university days of whi...Read More
Steel slab exporters in the Commonwealth of Independent States (CIS) continued to enjoy higher prices in mid-September with support from strong demand for finished flat steel products in some customers' markets, Fastmarkets heard on Tuesday September 15.A cargo of slab from major Russian supplier Novolipetsk Steel (NLMK) was sold to Turkey at a price slightly above $470 per tonne cfr, sources told...Read More
RAPAPORT... Gemfields expects to suffer a loss of $56.7 million for the first half of the year amid the cancellation of most of its emerald and ruby auctions.The loss for the six months ending June 30 compares with a profit of $12.4 million for the same period a year ago, the miner said Monday. The company was able to hold only one auction, in February, before being forced to cancel those schedule...Read More
RAPAPORT... The World Federation of Diamond Bourses (WFDB) has voted in Yoram Dvash as its president for a three-year term, the organization said Tuesday.Dvash, who holds the same position at the Israel Diamond Exchange, had been the WFDB's acting president since Ernie Blom stepped down in April. The election took place at a WFDB working session during this week's virtual World Diamond Congre...Read More
RAPAPORT... Stornoway Diamond Corporation plans to resume operations at its Renard mine in Canada this month after half a year of inactivity, according to a minority shareholder.The miner, which was acquired by its lenders last year following heavy losses and mounting debt, closed the deposit in March as a result of the challenges imposed by the coronavirus pandemic. The resumption follows a revie...Read More
RAPAPORT... India's polished-diamond exports fell 26% year on year to $1.22 billion in August, a gentler decline than in previous months, as overseas jewelry demand improved, the country's Gem & Jewellery Export Promotion Council (GJEPC) reported."We have witnessed initial signs of recovery from markets like the US, China [and] Europe," GJEPC chairman Colin Shah said earlier this week. "E...Read More
The Turkish steel mills continued to hold back from deep-sea scrap purchases on the second working day of this week amid softening demand for finished long steel products, sources said on Tuesday September 15.Mills in Turkey booked seven deep-sea cargoes, totalling around 230,000 tonnes, early last week before withdrawing from the market on September 10.The most recent deep-sea bookings put scrap...Read More
RAPAPORT... Nonprofit group Gem Legacy will launch an auction of donated jewelry and loose gems to celebrate its second anniversary, with the proceeds going to fund new tool kits for artisanal miners in Africa."Tools are absolutely essential to small gem miners' success," Rachel Dery, director of communications and outreach for Gem Legacy, said last week. "The tool kit will provide them with more...Read More
(IDEX Online) - India's biggest show for the jewelry trade is to take place as a virtual event in October.The flagship India International Jewelry Show (IIJS) Premiere, which typically attracts 40,000 visitors and over 1,300 exhibitors, should have taken place in August but was axed because of the pandemic.Organizers GJEPC today said they were expecting 500 exhibitors and 10,000 buyers at IIJ...Read More
(IDEX Online) - Workers at the Diavik diamond mine, close to the Arctic circle, were surprised to find a grizzly bear prowling the cafeteria.It's not clear how the animal gained access to the site, at Lac de Gras, in Northwest Territories, Canada, but staff suspect it entered through external doors to the adjoining kitchen.A picture of the bear was posted on Facebook, captioned: "This is wild...Read More
(IDEX Online) - The Zimbabwe government has banned mining for diamonds and other minerals in its national parks.It was responding to calls from environmental and wildlife groups, who raised concerns about threats to biodiversity, tourism and the elephant population.Mining for diamonds, gold and coal is widespread in national parks across southern Africa, Shamiso Mtisi, of the Zimbabwe Environmenta...Read More
Chilean copper producer Codelco has agreed a 36-month labor deal with the union representing supervisors at the El Teniente copper mine, the state-owned company said on Monday September 14.Codelco said the 36-month labor contract renewal deal includes no pay rises to enable the company to secure unit profitability and to generate resources for Chile to tackle social and health issue...Read More
Rio Tinto is to launch its first closed-loop recycling program, offering customers in North America a new scrap take-back solution and the production of high-quality alloys made with recycled content. The service, which will be available from next year, complements the company's production of low-carbon aluminium and is designed to give its customers greater choice while they look to meet increasi...Read More
Low liquidity has added more pressure to the domestic alumina market in China, which has gone into a downtrend because of oversupply, several sources told Fastmarkets on the sidelines of the Qianhai Mercantile Exchange alumina seminar on Tuesday September 15."We were well covered by long-term contracts and have no need to buy from the spot [alumina] market," one alumina consumer based in Henan pro...Read More
The London Metal Exchange three-month zinc price increased marginally during the morning on Tuesday September 15, with a fresh cancelation of some 6,275 tonnes keeping its price above nearby support while thin volumes traded in Asia, despite better than expected economic data out of China.LME zinc's outright price was recentl at $2,516.50 per tonne on Tuesday, holding above the nearby $2,500-per-t...Read More