Stock Slide Continues

Overview: Equity markets are fragile after last week’s rout, while bond markets have extended their recovery.  The dollar is mostly firmer to start the new week.  Japan, China, and Taiwan saw equities advance, but not enough to offset weakness elsewhere, and the MSCI Asia Pacific Index was off around 0.75%.  It fell by 1.7% last week.  Europe’s Stoxx 600 fell for the first three weeks of […]

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Endeavour Says Mines Unaffected By Burkina Faso Coup On Day It Unveils 70m Final Dividend

Endeavour says mines unaffected by Burkina Faso coup on day it unveils $70m final dividend

Sebastien De Montessus, CEO Endeavour Mining ENDEAVOUR Mining said its operations and supply chains had been unaffected by “the current political situation” in Burkina Faso which news agencies are reporting as a likely coup by the military. It follows similar political events in the past 18 months in Mali – where Endeavour has a promising project – and Guinea. “Endeavour Mining announces that its operations […]

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A Couple of False Breaks and a New Four-Year High in the Yuan

The US dollar broke higher against the yen to start the year.  It traded up to JPY116.35, its highest level in five year.  However, within a few days it became clear that it was a false breakout.  The dollar moved back within its old range (~JPY113-JPY115 +/- 0.5 yen).  Indeed, the greenback finished last week near JPY113.65.   Ok, if the dollar is going to weaken, the […]

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Three Events Dominate the Week Ahead and the FOMC Meeting may Not be the Most Important

Three events stand out next week.  The preliminary PMI readings for many high-income countries and the policy meetings of the Federal Reserve and the Bank of Canada. The geopolitical backdrop remains elevated over the build-up of Russian troops and armament seemingly poised to invade Ukraine.  No new talks between Russia and the US are scheduled (yet?). Meanwhile, the surge in Covid cases appears to be slowing […]

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Gsp Continues To Explore Past Producing Alwin Mine As Copper Price Support Remains Solid

GSP continues to explore past-producing Alwin Mine, as copper price support remains solid

2022.01.22 Copper has been one of the biggest winners of the commodities complex since 2020. Not only is the tawny-colored industrial metal an essential part of economic growth, it is also imperative to the global transition towards sustainable energy sources. Because electric vehicle are copper intensive (in fact tdhey use 4x as much copper as a regular vehicle), demand for copper has risen at an […]

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Minergy Throws Hat In Ring For 300mw Greenfields Botswana Coal Fired Power Plant

Minergy throws hat in ring for 300MW greenfields Botswana coal-fired power plant

Morné du Plessis, CEO, Minergy BOTSWANA thermal coal producer Minergy said it reduced its operational loss in the six months ended December following an improvement in prices as well as higher output from Masama, its 125,000 tons a month nameplate capacity mine. Production following the commissioning of stage 4 of its processing plant regularly exceeded 105,000 tons per month, said Morné Du Plessis, CEO of […]

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Wage Increase The Good Bad Amp Ugly

Wage Increase – The Good, Bad, & Ugly

Print Friendly Wage increases are undoubtedly good for workers. However, as we will explore, wage increases are a double-edged sword that often has more negative economic consequences. Importantly, wage increases are undoubtedly good for consumers. There is no arguing that point. After all, who doesn’t want to make more money for doing their job? However, as we discussed in “$15/Hour Cost & Consequences,” wage increases […]

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Don’t Write Off Gold Just Yet – OWTW

Don’t Write Off Gold Just Yet – OWTW By CapEx Team January 21, 2022 7:55 am   R.I.P. OIL? The reports of my death have been greatly exaggerated. To riff off of this popular quote, reports about the (imminent) “death” of oil in the mainstream press have been greatly exaggerated, too. For a few years now, we were among the few contrarian voices saying the coming […]

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The Fedcoin What Bitcoin Doesn T Want You To Know

The Fedcoin: What Bitcoin Doesn’t Want You to Know

In December 2020, I wrote about a popular Bitcoin pricing model that was getting a lot of traction, the S2FX model. At the time, Bitcoin was on a tear and the sky was the limit for price expectations. And this popular model which promised investors the moon and more for Bitcoin prices caught the attention of crypto HODLers everywhere. I’ve never seen a math model […]

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Is Your Silver And Gold Safe With A Custodian

Is Your Silver And Gold Safe With A Custodian?

The short answer is “no.”  Just ask those who invested in Morgan Stanley’s silver “investment” product 15 years ago or in UBS’s precious metals custodial services. Time and time again we hear horror stories – some anecdotal and some that come from bona fide lawsuits in which investors who thought they had silver with a “reputable” custodian ended up with no physical silver and, instead, […]

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Ugly Friday

Overview: The reversal in US equities yesterday set the tone for today.  Among the large bourses, only Hong Kong escaped the pain today. It was the sixth session of the past seven that the MSCI Asia Pacific Index fell.  Today’s 1.3% retreat in the Stoxx 600 brings it lower for the week, and third consecutive weekly loss.  US indices closed on their lows yesterday so the […]

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So Goes January So Goes The Year

“So Goes January, so Goes the Year”

“So goes January, so goes the year.” It is an old Wall Street wheeze referring to the stock market. If it holds true, if the remainder of this year goes like January… the stock market is in for hard sledding through Dec. 31. The stock market endured another defeat today — all three major indexes absorbed losses. The Dow Jones went skidding 313 points, the […]

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Wage Slaves Vs Gold Owners Revisited

Wage slaves vs gold owners, revisited

2022.01.21 Inflation is the rate at which prices within a basket of goods or services (called the consumer price index or CPI) rise or fall. When a currency falls, the ability of that unit of money to purchase goods and services weakens, i.e., it takes more units of currency to buy the same basket of goods as before it weakened. The more a currency falls, […]

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Sa Pgm Earnings To Underwhelm As Price Retraction Cost Inflation And Capex Hit Home

SA PGM earnings to “underwhelm” as price retraction, cost inflation and capex hit home

EARNINGS from South Africa’s platinum group metal (PGM) companies may prove disappointing owing to a retraction in the average PGM basket price in the second half of the year, according to JP Morgan Cazenove. The bank’s analyst Dominic O’Kane said in a note this week that merger and acquisition as well as growth orientated capex spend would also contribute to “underwhelming” capital distributions. South Africa’s […]

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Consumer Spending Decline Makes A Recession More Likely

Consumer Spending Decline Makes A Recession More Likely

Print Friendly “How are you feeling?”  That’s often the way we greet people these days.  As the Omicron variant becomes widespread, negatively impacting most Americans’ lives.  Add worries about inflation to the mix. Finally, some schools are going back to online learning, forcing parents to work from home with kids at home. Consumers are stressed, anxious, and uncertain about the future. If the drop in […]

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HK Rallies and PBOC Cuts, US Stocks Stabilize

Overview:  Amid inflation fears and the decline in crypto prices, gold was resurrected, rallying the most in three months yesterday to its best level since November.  It is consolidating those gains today, straddling the $1840 level.  Equities are trying to stabilize.  The MSCI Asia Pacific Index snapped a five-day slide with a 1% gain helped by a 3.4% rally in Hong Kong .  The Hang Seng […]

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Our Plastic World

Our plastic world

2022.01.20 Think about this: Every time you buy a soft drink that comes with a plastic straw, and toss it into the garbage, you are contributing to the global plastic pollution problem. The same goes for hundreds, maybe thousands of other single-use plastics, including ubiquitous food packaging, take-out containers & cutlery, coffee cups with plastic lids, water bottles, shopping bags, and throw-away plastic covers like […]

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Gold Output At Sibanye Stillwater S Beatrix Mine Off To Slow Start As Fatalities Tailings Rehab Bites

Gold output at Sibanye-Stillwater’s Beatrix mine off to slow start as fatalities, tailings rehab bites

Miners at Beatrix gold mine Source: Sibanye-Stillwater GOLD processing at Sibanye-Stillwater’s Beatrix gold mine in the Free State is to be closed until April in order to rehabilitate part of a tailings dam, the company said today in an operating update for its 2021 financial year. The closure compounds a difficult period for Sibanye-Stillwater which last year said mining at three shafts in the gold […]

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Instability Or Inflation Which Will The Fed Choose

Instability or Inflation, Which Will the Fed Choose?

Print Friendly Over the past few weeks, Fed speakers are bemoaning inflation and voiced their wishes to squash it. They frequently mention how effective their monetary toolbox is in managing inflation. There lies a massive contradiction between words and actions within these numerous speeches and media appearances. If the Fed is so intent on fighting inflation, why are they still stimulating the economy and markets […]

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