Month: March 2014

Following the Fed interest rate decision, NZD/USD dipped 110 pips to the nearest support, where action slowed down to a halt during the asian session.

The current support, priced at 0.8520, is actually a crucial level in the current uptrend. Besides being a confirmed price pivot zone where the last swing low in the uptrend ended, the bullish trendline has caught and the 200 simple moving average on 1H timeframe have finally caught up with this level.

Ahead of the US Jobs and Home Sales reports, NZD/USD sellers are already trying to stabilise the price below this support level. A succesfull break here will technically change the trend from bullish to bearish, opening up the way towards 0.8430 area for starters.

Further confirmation would be a re-test of 0.8520 from below, confirming the level as resistance, which suggests a lot more downside is ahead.

*********
Prepared by Alexandru Z., Chief Technical Analyst at Capital Trust Markets

Capital Trust Markets is a fully regulated and compliant online Forex Brokerage, offering a flawless trading environment to traders of all types. The world class trading infrastructure – backed up by advanced trading tools and cutting edge trading software and technology – is combined with award winning customer support to provide a highly successful blend of customized trading solutions.

Article By RoboForex.com

Analysis for March 20^th, 2014

EUR USD, “Euro vs US Dollar”

Yesterday price reached level of 50% and my Take Profit was very successful. Earlier, Eurodollar rebounded from upper target levels and started correction. Probably, pair may rebound from level of 50% and start new ascending movement.

As we can see at H1 chart, price reached its lower targets right inside temporary fibo-zone. While price was rebounding from current levels, I opened buy order with tight stop. If pair starts moving upwards, I’ll move stop on my order into the black as soon as possible.

USD CHF, “US Dollar vs Swiss Franc”

Franc made strong movement and reached level of 50%; my Take Profit was very successful. In addition to that, bulls are still pushing price upwards and may reach level of 61.8% quite soon. Later instrument is expected to rebound from this level and start new descending movement.

At H1 chart we can see, price is getting closer to temporary fibo-zone, which means that pair may rebound from level of 61.8% during the day. After that, I’ll try to find opportunity to enter the market and start selling.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By CentralBankNews.info
    Switzerland’s central bank maintained its upper limit for the Swiss franc’s exchange rate along with its target for interest rates, as expected, and cut its forecast for inflation this year and 2015.
    The Swiss National Bank (SNB), which imposed a 1.20 euro cap on the franc during the height of Europe’s sovereign debt crises in September 2011, also confirmed that it “stands ready to enforce the minimum exchange rate, if necessary, by buying foreign currency in unlimited quantitates.”
    The SNB also maintained its target range for three-month Libor of 0.0 to 0.25 percent, the bank’s target since April 2009.
    Due to its political stability and independence, the Swiss franc tends to be rise during periods of unrest with the recent rise in geopolitical risks surrounding Ukraine and Russia once again putting upward pressure on the franc. After ending last year around 1.23 to the euro, the franc rose to 1.21 in early March and was trading at 1.22 today.
    Switzerland has been experiencing deflation since late 2011 and consumer prices again fell by 0.1 percent in February after rising 0.1 percent in each of the months of November, December and January.
   “Internationally declining inflation rates and the slightly stronger Swiss franc are delaying the rise of inflation into positive territory,” the SNB said.

   The SNB now expects inflation to be 0.2 percentage points below its previous forecast from December, expecting inflation of zero percent in 2014 and 0.4 percent in 2015 before rising to 1.0 percent in 2016.
    The pace of growth in Switzerland’s economy weakened in the fourth quarter of 2013, as the SNB had expected, but it expects activity to pick up again from the first quarter of this year.
    For 2014, the SNB said it was still expecting Gross Domestic Product growth of around 2.0 percent. In the fourth quarter of last year, GDP expanded by 0.2 percent from the third quarter’s 0.5 percent quarterly growth rate. On an annual basis, GDP grew by 1.7 percent in the fourth quarter, down from 2.1 percent in the third quarter.
   
    http://ift.tt/1iP0FNb
 

Article By RoboForex.com

Analysis for March 20^th, 2014

EUR USD, “Euro vs US Dollar”

H4 chart of EUR USD shows correction within ascending trend. Three Line Break chart and Heiken Ashi candlesticks confirm descending movement towards support from closest Windows.

H1 chart of EUR USD shows bearish tendency, which is indicated by Tweezers pattern. Three Line Break chart confirms descending movement; Heiken Ashi candlesticks indicate bullish pullback.

USD JPY, “US Dollar vs Japanese Yen”

H4 chart of USD JPY shows ascending movement, which is indicated by Tweezers and Engulfing Bullish patterns. Three Line Break chart and Heiken Ashi candlesticks confirm bullish tendency.

H1 chart of USD JPY shows bullish tendency, which is indicated by Tweezers pattern. Upper Window is resistance level. Three Line Break chart, and Heiken Ashi candlesticks confirm ascending correction; Evening Doji Star pattern indicates possibility of bearish pullback.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article by Investazor.com

The European single currency lost ground in front of the US dollar after the FOMC policy meeting yesterday. The EURUSD price dropped bellow the range support and 200 EMA, but stopped at 1.3815 where it found a very good support level and the up trend line. At this point a close on a 60 minutes chart above 1.3850 could mean a retest on the 200 EMA. A drop bellow the support area market with red would be a bad signal for bulls.

The post EUR/USD Price Action For March 20 appeared first on investazor.com.

GBPUSD’s downward movement form 1.6785 extended to as low as 1.6508. Resistance is located at the downward trend line on 4-hour chart, as long as the trend line resistance holds, the downtrend could be expected to continue, and next target would be at 1.6450 area. On the upside, a clear break above the trend line resistance will indicate that the downtrend from 1.6785 is complete, then the following upward movement could bring price to 1.7000 zone.

Provided by ForexCycle.com

By MoneyMorning.com.au

The nice lady spoke.

She said what the market didn’t want to hear.

The market reacted. Stocks fell.

Haven’t they learnt anything?

She may be a nice lady, but you can’t trust a single word she says…

The market was waiting for this day.

It was the first time that new US Federal Reserve chairman, Dr Janet Yellen would take the helm of the central bank after taking over from that bad man, Dr Ben S Bernanke.

What would she do?

Would she junk everything the old doctor had done, or would it be business as usual?

It depends whether you believe a word any of these central bankers say. Based on history, we don’t believe it. But we’ll play their game for now.

Rates to Rise…Really?

So, what was the big story that the market disliked so much?

Well, it turns out that the Fed board members believe interest rates will rise sooner than expected.

Previously, the board members thought that interest rates would reach 0.75% at the end of 2015 and 1.75% at the end of 2016.

Now they’ve changed their view. The new forecast is for rates to be 1% at the end of 2015 and 2.25% at the end of 2016. That would be a big jump seeing as the current Fed Funds Rate is 0-0.25%.

The question is whether that will really happen.

We have our doubts.

For a start we look at the situation in Japan. Japan has held its interest rates at close to zero for 20 years. Several times over the past 20 years it has made ‘threats’ to raise interest rates.

When it has tried, the stock markets haven’t liked it – stocks have fallen. And on the currency front, the yen has climbed – that’s because the carry trade is less attractive if Japan’s interest rates are higher.

So each time the Bank of Japan has tried to raise interest rates they’ve quickly reverted to the zero interest rate policy.

Why would things be any different with the Fed and its interest rate policies?

Well, there is one reason…

Low Rates Good for Stocks

We’ll say straight up that our position remains the same as it has for most of the past three years – US interest rates aren’t going anywhere.

That’s why we’ve held such a bullish position on stocks. Low interest rates are good for stocks for two reasons. First, it means the cost of borrowing is low for businesses.

It means they can borrow more money in order to reinvest in and grow their business.

But it’s also ‘good’ for investors who want to borrow cheaply to leverage into stocks and housing.

The other consequence of low interest rates is that it forces investors to buy riskier assets. Where previously an investor in the US may have earned 4% or 5% from a bank deposit, they’re lucky to get 0.4% today.

So they have to buy assets with higher yields. That mostly means buying stocks.

But if interest rates go up, that could be a problem for stocks. If an investor can get a better return from a safer investment like a bank account then it makes them less likely to buy shares.

That would result in lower stock prices.

But is that the only outcome of higher interest rates?

Not necessarily. Remember that a big part of investing is investor psychology. What do we mean by that and how could it impact stock prices?

It’s like this…

Higher Rates Good for Stocks?

This is an argument we’ve made over the past year as the stock market rallied even though the Fed signalled that it would cut back on its bond buying program.

After all, the inference of cutting back the bond buying program is that interest rates will rise. So why would stocks go up?

That’s where investor psychology comes in. If the market believes that rates will only go up if the economy is back in shape, then that will give investors a reason to buy stocks.

They’ll believe that the Fed would only do something as radical as raising interest rates if businesses and consumers could cope with the change.

Does that mean money printing works?

No. Not at all. Money printing doesn’t ‘work’. It simply prolongs a problem and ensures that there will be another financial meltdown in the future.

But in the short term it gives the impression of working. That helps explain why the US S&P 500 index is up 153% since the 2009 low.

The important issue is whether this changes anything from an investment perspective. It doesn’t. When a central banker sends out a new message it’s natural that it rattles the market – hence the 0.6% fall this morning.

But long term (as in the next five years), nothing has changed. Interest rates are low, and they’ll still be low even if the Fed begins raising interest rates.

Just look back at 2004. The US Fed sent a clear message that it would raise rates. It did, again, and again, and again. And what do you know? The stock market kept going up because investors believed that the economy was in good shape – even though it was just masking the problems that would blow up in 2008.

Cheers,
Kris+

Special Report: Mining Boom Act II

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By MoneyMorning.com.au

Source: Brian Sylvester of The Gold Report (3/19/14)

https://www.theaureport.com/pub/na/michael-gray-is-goldcorps-bid-for-osisko-a-harbinger-of-a-gold-renaissance

Optimism. Momentum. Buoyancy. Call it what you will, a positive current is running through the gold space. Macquarie Capital Markets’ Canadian Mining Equity Research Team Head Michael Gray deconstructs some of the factors contributing to that newfound energy. Calling out merger & acquisition activity as a nascent trend, he shares with The Gold Report some of the names that could be on a senior gold producer’s shopping list.

The Gold Report: Many described the mood at the recent Prospectors and Developers Association of Canada (PDAC) conference in Toronto as something close to cautious optimism. You were there. Can you give our readers three reasons to believe a corner has been turned?

Michael Gray: Number one is the gold price being in the $1,330–1,370/ounce ($1,330–1,370/oz) range. Few people expected that at the start of the year. Indeed, many were predicting gold below $1,200/oz. Number two, a number of companies have received a stay of execution. There is a fertile environment for raising capital. Equity deals and a number of small merger & acquisition (M&A) deals are being done. That leads to number three, and the most important, which is Goldcorp Inc.’s (G:TSX; GG:NYSE) bid for Osisko Mining Corp. (OSK:TSX). That is the kind of big M&A activity we haven’t seen for a long time.

TGR: As far as equity deals go, how does your deal flow today compare to January and February 2013?

MG: I would say it’s night and day. There was very little activity in the markets for most of 2013. The tax-loss selling that happened toward the end of 2013 put the squeeze on the juniors and there was a marked increase in small-scale M&A during Q4/13. In early 2014 a stronger gold price combined with further M&A and sector outperformance generated more optimism. That momentum continues. It has been important to see more deals come through on equity financing. We’re seeing a healthy number of deals, many of them underwritten.

TGR: Is a gold price above $1,300/oz sustainable for 2014?

MG: Our house view is that the price will be softer in the second half of the year. However, a number of wild cards could come into play: increased buying of gold by China and the controversy over the official versus the unofficial gold sales in India along with the gold import tax dynamic, to name two.

TGR: Every Canadian small-cap gold producer was trumpeting the benefit of a weak Canadian dollar at PDAC. Is the impact of a $0.90 loonie really that much of a boon?

MG: It is as long as the operating costs and the sustaining capital costs are in Canadian dollars. Typically reagents and some materials are in U.S. dollars, so producers don’t get the same leverage on those costs.

For example, Richmont Mines Inc. (RIC:TSX; RIC:NYSE.MKT) has more than 95% exposure to the Canadian dollar as far as its operating costs, sustaining capital and exploration go.

We have to analyze it case-by-case, but we’re finding that the majority of the small-to-intermediate Canadian asset producers have great leverage against a weakening Canadian dollar.

TGR: Can you elaborate on the Goldcorp-Osisko merger?

MG: There are very few 500,000+ ounce/year (500+ Koz/year) assets out there for the seniors to buy, let alone in North America. Out of the 11 operating mines in Goldcorp’s portfolio, on a pro forma basis, Osisko’s Canadian Malartic asset would be among the top three production-wise, if the bid succeeds. This is the biggest dollar value deal we’ve seen for a long time.

It also speaks to Goldcorp’s increased focus on Canada, and with the Éléonore development project in Québec in particular, as it will be in production in November 2014. No question in our view, Goldcorp is highlighting the value of being exposed to a weakening Canadian currency.

Of all the seniors, Goldcorp has the best pipeline of quality assets. After getting through this particularly high initial capital cost (capex) year—2014—the Street will increasingly shine a light on Goldcorp, in our view. With Osisko in its portfolio, the light would shine even brighter.

TGR: Is this a harbinger of further M&A?

MG: Yes, in the sense that the seniors are looking to buy quality production and pipeline assets. If the Goldcorp-Osisko deal goes through, other producer targets in the 500+ Koz gold/year category in the Americas include Detour Gold Corp. (DGC:TSX) and in the eventual 300+ Koz/year category AuRico Gold Inc. (AUQ:TSX; AUQ:NYSE).

Among the 300 Koz/year undeveloped projects out there, Midas Gold Corp. (MAX:TSX) with its 100%-owned, 7-million-ounce (7 Moz) Golden Meadows project in Idaho, along with Torex Gold Resources Inc. (TXG:TSX) and its ~5 Moz, 100%-owned Morelos project in Mexico are attractive high-margin assets. We don’t cover Romarco Minerals Inc. (R:TSX), but its 4.8 Moz Haile project in South Carolina, certainly has 200+ Koz/year production potential.

Probe Mines Limited (PRB:TSX.V) hasn’t reached critical mass yet with its 100%-owned Borden Lake asset, but Agnico-Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) has put its marker down for an equity interest in Probe. Probe has a compelling new high-grade discovery at Borden that signals that Canadian gold belts have lots more new, raw discoveries to give.

Latin America has struggled to some extent. Even in Mexico, the new mining tax reform package forced companies to make adjustments. In terms of M&A, precious metal assets in Latin America need to be carefully scrutinized.

TGR: Probe is aggressively drilling the new high-grade zone at its Borden project in Ontario. When do you expect Probe to issue a preliminary economic assessment (PEA)?

MG: Our analyst who covers Probe, Pierre Vaillancourt, believes Probe could be in a position to publish a PEA as early as before the end of 2014. Probe has plenty of cash and the ability to raise more. Its share price has defied a lot of investors who might have taken money off the table on its run up.

TGR: You have Outperform ratings on several Canadian producers. One is Richmont Mines, which had issues in 2013 with rising costs due to processing lower head grades. Is this a turnaround story in 2014?

MG: In our view, it’s definitely a turnaround story. Richmont found a new deposit of just above 1 Moz of approximately 10 grams per ton (10 g/t) gold immediately below its Island Gold mine near Wawa, Ontario. This deeper zone (Deep C) at Island Gold transforms the company from one that was living on a small reserve base to one with the potential for a 10-year mine life with higher margins.

Despite the issues on grade it encountered in the upper portions of the Island Gold mine last year, the company has ramped down to the top of its Deep C zone with nearly 1 Moz of high-grade ore. It is drilling that off to 20-meter (20m) centers right now. This is a perfect scenario: the development is getting put in place; Richmont just has to extend the ramp infrastructure, develop stopes and feed the mill with higher grades.

The true thickness of the Deep C zone averages 4.5m versus 2.7m in the upper portion of the mine. That will mitigate dilution, bring higher grades to the mill and increase production, based on our analysis.

TGR: What caused the problems in 2013?

MG: At the Island Gold mine, Richmont was mining lower grades in 2013 of 4.65 g/t; recoveries were also lower and milling costs were higher than expected. Its cash costs were fairly high at CA$946/oz in Q4/13. That grade just isn’t going to cut it at $1,200/oz gold once sustaining costs are added.

The high-grade Deep C deposit is the game changer. Approximately 60% to 70% of the drill holes have documented visible gold, at a depth between 450m and 1 kilometer. This can be a prolific vertical depth window in a lot of Canadian gold belts.

We believe that the more robust continuity and geometry of this Deep C zone, in terms of thickness and grade, make it a winner. Richmont is also starting to document parallel veins with good grades on the flanks of the Deep C zone, including those getting incorporated into the latest resource statement.

TGR: What other companies do you rate Outperform?

MG: Tahoe Resources Inc. (THO:TSX; TAHO:NYSE), which recently achieved commercial production at the Escobal mine in Guatemala and has issued production guidance of 18–21 Moz for 2014. The company has an A team at Escobal. It delivered with minimal slippage in the timelines. It also delivered on corporate social responsibility initiatives. Escobal is an underground mine where the company has brought to bear all the latest technology to ensure that it is an environmentally responsible underground mine as it lies in the region of a farming community. That was a really important box ticked for Tahoe.

TGR: Is Tahoe’s $75 million ($75M) debt an issue?

MG: It’s a minimal debt for the production profile and the cash flow we see coming from the asset. At the same time, we would expect to see management address the debt before instituting a dividend policy.

TGR: What other companies that you cover with Outperform ratings would you like to talk about today?

MG: MAG Silver Corp. (MAG:TSX; MVG:NYSE) is one of our high-conviction calls in the precious metals space. The Juanicipio project in Mexico, the joint venture between MAG Silver and Fresnillo Plc (FRES:LSE), is one of the best, highest-grade silver development projects out there. We visited the asset five weeks ago to confirm that the underground development access to the vein is progressing. It will take 3.5 years or so to fully access the ore and establish production at Juanicipio.

We believe this mine will have a production profile close to 15 Moz silver/year for the first seven years. Its all-in sustaining cash costs will be approximately $3/oz silver. The PEA shows a 21% internal rate of return at $10/oz silver. This is all on an initial capex of approximately $320M. MAG Silver has a 44% share of that to contribute.

TGR: There was talk about Fresnillo eventually buying MAG Silver out. What are you hearing?

MG: There is a lot of history there. Back in 2008, a “takeunder” bid caused some acrimony. There are different faces on the joint venture technical committee now. George Paspalas is now the CEO of MAG Silver; Octavio Alvidrez is CEO of Fresnillo.

From our vantage point, it makes sense for Fresnillo to consolidate the other 44% Juanicipio interest it does not control. It would have to be a friendly transaction, given that Fresnillo owns 17% of MAG Silver. Bottom line: things are more positive from a relationship point of view by our estimation, but that doesn’t mean a takeover is imminent.

TGR: You mentioned Midas Gold as a possible takeover target. What is the premise there?

MG: Midas Gold’s 7 Moz 100%-owned Golden Meadows gold project is an attractive asset and potential pipeline project for an intermediate or senior producer as it a North American asset that could be producing 300–400 Koz Au/year by 2019 or 2020. There are very few assets like this in North America. The closer Midas gets to submitting its environmental impact statement (EIS) and gets into Idaho’s joint review process (late 2014/early 2015), the more it will be on the radar screens of intermediate and senior mining companies, in our view.

Golden Meadows is a past-producing brownfield open-pit operation. The company will have some permitting challenges, including restoring a former salmon stream that currently flows into the Yellow Pine pit. However, it is our understanding that the environmental groups aware of the project recognize that mining the deposits at Golden Meadows will ultimately transform and remediate the legacy issues toward a more natural state at the end of its life as a mine and is a good news story.

Midas will issue a prefeasibility study in midyear. We estimate that the company will be in a position to submit its EIS and essentially put a pin in the project scope and permitting toward the end of the year. That might be the time for a producer to take on the project via M&A.

The other angle that we think is important is that we see Golden Meadows as a Donlin Creek analog. Both have similar geology, and Donlin Creek has more than 40 Moz of gold [in the Barrick Gold Corp. (ABX :TSX; ABX:NYSE) and NOVAGOLD (NG:TSX; NG:NYSE.MKT) joint venture]. We believe on this basis Midas’ Golden Meadow asset has the pedigree to be very big.

TGR: When it comes to taking positions in these companies, do you recommend accumulating on dips or taking full positions when possible?

MG: It varies by company. If it’s a high-conviction call and you take a 12-month view as we do, we would gain exposure to the best of breed assets, companies like MAG Silver and Midas Gold.

Among our Outperform ratings, companies we consider buying on the dips include Elgin Mining Inc. (ELG:TSX), which we recently moved from a Neutral to an Outperform rating. At 166%, it has one of the highest year-to-date returns in our coverage universe. Elgin is a bit of a show-me story when it comes to its Björkdal gold mine in Sweden.

TGR: Any final words of wisdom for us?

MG: Even though we’ve turned one corner, investors need to be aware that we could turn another corner—not necessarily a positive one. I think we should be very prudent. Focus on quality companies with low cost structures, attractive assets and good management.

TGR: Michael, thank you for your time and your insights.

Michael Gray is a mining equity analyst with Macquarie Capital Markets and covers a range of precious metal explorers and producers with an emphasis on North and South America. He is an exploration geologist and holds a Bachelor of Science in geology from the University of British Columbia and Master of Science in economic geology from Laurentian University. His career of more than 25 years in the mineral exploration business started with senior mining companies including Falconbridge, Lac Minerals, Cominco and Minnova where he worked throughout Canada and the USA. He co-founded Rubicon Minerals in 1996. He is also a past President of the 5000+ member BC & Yukon Chamber of Mines (now AME BC). Gray joined the mining analyst world in 2005 where he brought to bear his technical skills to identify new precious metal opportunities at an early stage with outstanding exploration potential; he has covered a number of these opportunities that were subsequently taken over by gold producers.

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Interviews page.

DISCLOSURE:
1) Brian Sylvester conducted this interview for The Gold Report and provides services to The Gold Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Richmont Mines Inc., Probe Mines Limited, Tahoe Resources Inc., MAG Silver Corp. and NOVAGOLD. Goldcorp Inc. is not associated with The Gold Report. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.
3) Michael Gray: I or my family own shares of the following companies mentioned in this interview: None. I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: All except Goldcorp Inc. and Barrick Gold Corp. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.
5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer.
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By MoneyMorning.com.au

I actually enjoy going to work. Writing about the latest in tech for you on a daily basis is fun.

But recently I got a bit excited even before I’d stepped inside the office.

Stick with me; this isn’t as weird as it sounds…

My usual trot from Waterloo Station to Blackfriars Road is at worst 10 minutes. Usually that’s the Monday morning shuffle time frame.

But this was Wednesday. And it was so sunny and nice outside I actually wore shades on the way to work. I kid you not, it was already 11 degrees, sunny and barely a cloud in the sky.

Just to remind you, this is London, technically still in winter.

I grabbed my morning latte from a little street cafe (I’m still a proud Melbourne boy) and headed down the street. I turned left, walked about 100m, turned right, then turned left and headed straight toward the office. And in the distance I spotted a slightly strange shaped car.

It wasn’t something I recognised. And I love cars, so for me to not recognise a car is pretty rare. But I didn’t realise until I was closer that I’d stumbled across something I truly didn’t expect to see. I even had to take off my sunnies to make sure my eyes weren’t playing tricks on me.

I thought perhaps the first place I’d see it would be in a showroom, or at best I’d have the good fortune to take one for a test drive sometime in the near future. But tucked away next to a tennis court, in a little side street, just innocuously parked on the side of the road was my first glimpse at the new BMW i3.

The first thing I did was make sure there was no one sitting in the car. Because I’m pretty sure there’s nothing creepier than a random guy (me) coming up, peering in your windows and taking photos of your car while you just sit there in bemusement.

Anyway after determining it was sitting there solo, I whipped out my trusty smartphone and took some happy snaps.

Now I get excited about seeing the new i3 in person, on the road, for three reasons.

1. I love cars. Always have, always will. Particularly new ones. That’s why from time to time you’ll read about cars in Tech Insider, specially the high tech ones.
2. The i3 is one of the most technologically advanced cars on the road. It’s a modern marvel and a good look at the future of car making.
3. It means the future has arrived.

I’ve written about the BMW i3 before. But I also covered it in our Revolutionary Tech Investor issue from September last year. It was in this issue we tipped a stock involved in carbon fibre composites. This small Aussie company is a key player in a high-tech development that’s set to dominate the auto and aerospace industry for decades to come.

So when I actually lay eyes on the i3, sitting there in a side street, I could barely believe it.

Click to enlarge

You see the i3 is the kind of car that future cars will look to as inspiration. The kind of technology BMW has used in the i3 will be the standard for other car makers in the coming decades.

The way BMW have made the i3 is market leading. The tech it has inside is also like something from a sci-fi movie. It’s really as high-tech a car as I’ve ever seen with my own two eyes.

Carbon fibre permeates through the entire body of the i3. This carbon fibre composite reinforces the i3′s passenger safety cell, making it extremely lightweight and strong. It’s so strong that there’s no need for pesky B-pillars (the ones that usually separate the front and the back). So if you often sit in the back seat, it’s 100 times easier to slide in and out of the car.

The benefit of the liberal use of carbon fibre means the whole thing is extremely light weight for a car packed with gadgetry. Remember, carbon fibre is stronger than steel, yet weighs half as much, and even weighs 30% less than aluminium. That means the i3 weighs in at just 1,195kg, yet has the structural rigidity of adamantium.

Other bits of super high-tech kit include the connected iPhone or Android App. From an app on your smartphone you can see the range left on the car and where it is (great for parking lots). You can remotely control the charge while it’s charging. And here’s the best part of the app, you can adjust the climate control in the car before you get in. That’s right, on a cold morning just heat the thing up while you’re eating your WeetBix. Or if it’s stinking hot at the beach, just set the air-con to chill down while you’re popping out of the water.

Oh I guess I forgot to mention the standard i3 is fully electric too, with a range of 200km. You can opt for the range extender i3 which has a little combustion engine added and gives it a 340km range. But really if you’re buying this you go full electric. It’s a city car. It’s not really going to be the car you tour the country with.

But all the gadgetry and electric power aside, it’s really the strong tilt towards carbon fibre that’s so exciting about the i3. Now although the bog standard i3 is a £30,680 (AU$57,068) it’s not over one hundred grand like most cars with this kind of tech would be (looking at you Tesla).

And that’s exciting. Because like I wrote about last week, technology eventually filters its way down from high end cars through to more affordable cars. So what you find today in a £30K (AU$55,803) car within a couple of years finds its way into a £15K (AU$27,901) car.

What it means is that over the coming years carbon fibre composites will become more affordable to make. Companies like the one we tipped for our Revolutionary Tech Investor subscribers are vital to making this happen. And as the price of this super material falls, the prevalence of it in car making will rise. There’s no doubt in my mind that carbon fibre composites will dominate the car industry for decades to come.

Across the world, new laws are in play which mandate car makers must adhere to strict CO2 emission levels. In the coming years the Chinese and the US (the two biggest car markets in the world) are going to feel the brunt of this the most.

In order to meet these new requirements car makers have to make their cars more efficient and lighter. That’s why the cars we’ll see in the coming years are going to be full of carbon fibre composites.

But for now I’ve seen the future with my own two eyes in the i3. It looks good, and lightweight.

Sam Volkering+
Editor, Revolutionary Tech Investor

Ed note: The above article was originally published in Sam Volkering’s Tech Insider, the free daily eletter in which Sam Volkering gives his readers the inside scoop on the new technology and tech companies that are changing the world.

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By MoneyMorning.com.au

GOLD: With a second day of weakness occurring on Tuesday and GOLD following through lower during Wednesday trading session, further bearishness remains. Support comes in at the 1,319.20 level. This if taken out it will pave the way for a run at the 1,300.00 level. Below here will aim at the 1,280.00 level where bulls may come in. Its daily RSI is bearish and pointing lower supporting this view. On the upside, for GOLD to annul its correction it will have to retake the 1,367.40 level, a tough call based on its present price action. Further out, resistance resides at the 1,388.95 level, its Mat 17 2014 high followed by the 1,400.00 level, its psycho level. A break will trigger further upside pressure towards the 1,450.00 level, its psycho level. All in all, GOLD remains biased to the downside in the short term.

Article by ww.fxtechstrategy.com