The latest market news, commentary and strategy by Adrian Rowney
There will be no morning report for the next two weeks as the editor is taking a break.
5 Things that Grabbed my Attention
1. AI chipmaker Nvidia soared 14% in the US….It added more in market value in one session that what BHP is worth.
2. Switzerland reported a massive 86% surge of GOLD exports in January…It was headed to ASIA and the MIDDLE EAST…..Drain from the WEST to the EAST continues.
3. PLATINUM mining giant, Sibanye-Stillwater wrote down the value of its mines by US$2.58bn….South African PLATINUM GROUP METALS (PGM) industry is in crisis due to low prices….But not once do the mining executives question the COMEX which sets prices.
4. Thousands of South African workers are about to get sacked from the PGM mining industry…Don’t be surprised if you see the mob, storm some of these mining sites and completely shut them down….A big supply squeeze could be coming for PLATINUM bullion. BUY ETPMPT
5. Newmont (NEM) BEAT quarterly earnings expectations but unfortunately for us its shares fell 7% overnight as it wrote down the value of its giant SILVER mine in Mexico by $1.2bn and cut its dividend to pay down debt….I am maintaining my BUY as this all gets fixed by a move higher in metals.
ASX Market Update
ASX 200 up 2 points to 7611
Overall our market closed basically FLAT for the session but there were some decent movers….Investors were happy with Bega’s (BGA) results and sent the stock 12.9% higher. While on the downside, Tabcorp (TAH) noted that Aussies had slowed down on the punt with turnover dropping 5.4% in January. TAH fell 10%. And Nine (NEC) fell 8.7% after reporting ad revenue tanked by a percentage in the mid teens and profit fell 46% – that’s what you get when you go WOKE. AVOID.
Random Observation
This is very BULLISH for PLATINUM and explains why the Chinese have been hoovering up all the above ground PLATINUM supplies….There are huge SHORT positions in PLATINUM, so the rally when it comes could be fierce!….Bring it on.
The Day Ahead
- SPI is up 24 points
- Bitcoin up 1.2% to $51,545
- BHP in US up 0.8%
- Newmont in US down 7% (bugger!)
- RIO in London up 0.47%
Movements affecting our resource stocks today (USD)
- Gold FLAT @ $2032
- Paper Silver down 0.37% to $22.79
- Platinum up 2% to $907
- Copper up 0.45% to $3.89
- Brent Crude up 0.72% to $83.61
- Iron ore up 0.8% to $120.05
Asian Market Update
Japan up 2.19% (fresh all time high), China added 1.27% and Hong Kong put on 1.45%
The WEST is feeding China’s GOLD rush…One day people will look back and question, why did we sell all that GOLD to China while DEBT levels were skyrocketing?…..I remain very BULLISH on GOLD.
Global Market Update
US Market
DOW up 483 points to 39,095 (hour of trade to go)
No need to worry about anything anymore, because AI and NVIDIA are going to solve absolutely everything for humanity….Uranium, copper, platinum, silver shortages – who cares! Commercial real estate crisis in the US – who cares! Weak US government bond auction – who could care!! Spiralling debt – Nvidia will wipe it clean!! War in the Middle EAST….hey – NVIDIA backed AI will negotiate a peace deal – I am sure!!!
So I’m no longer a worry wart. Time to live carefree in a land of rainbows and unicorns! Let’s go!!
European Markets
Germany up 1.47%, Brits added 0.29% and Frenchies put on 1.27%
The Brits sanctioning Russia (a nation of plentiful resources) was always pure insanity. The old saying now applies: you’ve made your bed, now lie in it…I sense another wave of FOOD INFLATION is coming for them; watch:
