The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Fitch cut USA's long term credit rating from AA+ to AAA....Whilst this should be very bullish for PRECIOUS METALS, overnight it wasn't as money poured out of most things and into the perceived safety of the USD.
2. Yellow Corp which is one of the largest trucking companies in the US has folded under the enormous weight of debt it was carrying....Higher interest rates have serious consequences.
3. UBER reported it's first ever quarterly operating profit. The stock has rallied strongly this year but it still 23% below its all time high....As the cost of car ownership (insurance, rego, fuel, loan repayments) becomes prohibitively high for many of the working poor, we should see demand for UBER and the like continue to rise.
4. Wheat futures have quickly dropped about 15% over the past few sessions thus giving back all the recent gains....I find it funny how only the rises are blamed on VLAD.
5. Sibanye-Stillwater's cost of PLATINUM production is $1124, so with PLATINUM trading @ $930 they are currently paying for the privilege of supplying the market with this critically important precious metal....Pure insanity...South Africa is getting ripped off like you wouldn't believe.
ASX Market Update
ASX 200 down 96 points to 7354
Our market gave back some recent gains but it wasn't all bad for us with SILVER (ETPMAG), GOLD (PMGOLD) and URANIUM (URNM) bucking the weaker trend to finish higher; those that own metals and other commodities in their SUPER are going to do very well once WESTERN investors realize that the monetary system is just one big fat PONZI scheme.
Every quarter I go through the production reports of S32,NCM,SFR,EVN etc and just shake my head as they continue to sell their SILVER output at obscenely low prices, thus generating minimal revenue for shareholders. BHP also mines quite a bit of SILVER but doesn't even bother to itemize it as they chuck it out for next to nothing.
It is getting on embarrassing how clueless the executives of our largest miners are; they need to be stockpiling SILVER until we get proper price discovery, not this fake/manipulated price set by the paper futures market. In the years to come SILVER is GOING to trade at many multiples higher.....
The Day Ahead
- Our SPI is down 50 points
- Bitcoin down 0.3% to $29,132
Movements affecting our resource stocks today (USD)
- BHP in the US down 2%
- Newmont down 2.4%
- Gold down 0.36% to $1971
- Paper Silver down 2% to $23.83
- Platinum down 1.25% to $928
- Copper down 1.6% to $3.84
- Brent Crude down 1.7% to $83.46
- Iron ore down 2.2% to $103.75
Asian Market Update
Japan down 2.3%, China off 0.89% and Hong Kong fell 2.47%
Some companies are killing it while others are going to the wall....Seeing some massive divergence.
Toyota, the world's top-selling automaker, scored an operating profit of $7.8 billion in the first quarter - up 94% from a year earlier, and above analyst forecasts https://t.co/pSQs1BdADC pic.twitter.com/rICAFzr8gz
— Reuters (@Reuters) August 1, 2023
Global Market Update
DOW down 348 points to 35,282
I was a bit surprised to see the DOW only down 1% after FITCH downgraded the US government credit rating....Most things sold off - bonds, metals, soft commodities, energy..as the money poured into the perceived safety of the USD....It's wild how the USD is still considered in the WEST as the safest thing anyone can own even though it is just created by the stroke of a keyboard!!!
Brits down 1.36%, Germans off 1.36% and Frenchies fell 1.26%
Is the WEST going to start a proxy WAR in Niger?....I'd say the probability is high.
🇳🇪 "We have uranium, we have diamonds, we have gold, we have oil, and we live like slaves?
We won't accept it. The French base in Niger must leave." pic.twitter.com/TMdXQWww0P
— Maria (@real1maria) August 2, 2023