InvestMacro

Thermoelectric Generator Prototype Could Improve EVs, Solar Power

Source: Streetwise Reports (10/19/23)

An improved tellurium-based thermoelectric generator being tested in Canada could increase the efficiency of electric vehicles, solar power, and combustible engines. Researchers say the markets are expanding.

First Tellurium Corp. (FTEL:CSE; FSTTF:OTCQB) announced an improved tellurium-based thermoelectric generator that could increase the efficiency of electric vehicles (EVs), solar power generation, and combustible engines.

The prototype was developed in the United States by First Tellurium’s 51%-owned thermoelectric-focused research and development company, 1406975 BC Ltd.

The generator is being delivered to Vancouver for further testing, the company said.

“Tellurium’s advantages for heat-to-energy conversion have long been recognized and understood,” said First Tellurium President and Chief Executive Officer Tyrone Docherty. “With the pressing need to increase the efficiency of alternative energy sources and both electric and combustion vehicles, we are in a strategic position to advance tellurium’s thermoelectric applications and contribute to the worldwide shift away from fossil fuels.”

The research company aims to explore new uses for tellurium and develop improved thermoelectric generators for the renewable and automotive industries.

“Completion of this prototype marks the next step of many towards what we believe will be innovative and valuable thermoelectric applications for tellurium,” Docherty said. “The generator, in its initial testing and development, has demonstrated potentially significant improvements in the conversion of heat to energy. We look forward to advancing the technology through further testing and research.”

The global market for thermoelectric generators was valued at US$472.5 million in 2020, according to Allied Market Research. It is forecasted to grow to more than US$1.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.8% from 2021 to 2030.

“Increase in demand for fuel-efficient vehicles and implementation of stringent government regulations to curb the emission of carbon dioxide act as the key driving forces of the global thermoelectric generator market,” Allied Market Research noted.

The Catalyst: Finding New Ways to Generate Power for Green Economy

Tellurium (Te) is one of the least common elements on Earth, according to the U.S. Geological Survey. In addition to thermoelectric applications, it’s also used in solar photovoltaic (solar PV) panels, lithium batteries, vulcanizing rubber, tinting glass, and manufacturing rewritable CDs and DVDs.

The element’s role as a semiconductor has increased its use in solar PV panels, the company said.

Recent International Energy Agency (IEA) forecasts show that solar PV technology will generate more power by 2027 than any other source. The market for Te is expected to grow by about 60 metric tons (about 10% of current production) from 2020 to 2024, according to research by Technavio.

“Factors such as increasing urban population, rise in disposable income, strong supply chain, and high internet penetration are driving the growth of the global consumer electronics market,” the research firm said in a release. “The increase in demand for consumer electronics will, in turn, drive the demand for tellurium over the forecast period.”

Technical Analyst Clive Maund recently named First Tellurium as a part of his 8 Stocks that are Rated Immediate Buys list.

First Solar is spending big to increase its module capacity, which is sure to strain the tellurium market. According to researchers at the Institute of Environmental Science and Technology at the Autonomous University of Barcelona, annual demand for the mineral could jump 70%.

First Tellurium’s Deer Horn site in British Columbia is known to have the only positive preliminary economic assessment (PEA) for a tellurium project in North America and was named a world-class project by solar panel maker First Solar Inc. (FSLR:NYSE)

In addition, the company’s Klondike tellurium project in Colorado is considered America’s top tellurium exploration project and was previously owned by First Solar as a potential source of raw tellurium for its solar panels.

Technical Analyst Clive Maund recently named First Tellurium as a part of his 8 Stocks that are Rated Immediate Buys list.

“First Tellurium has been bumping along the bottom in recent months with heavy buying late in May and again late last month, that drove the Accumulation line sharply higher, suggesting that it is readying to advance,” Maund wrote. “Longer-term charts show big support in the (CA$0.10) area, from which it has repeatedly rallied, underpinning the price, and with it still only at 12 cents, it looks like a Strong Speculative Buy here. Even if it only makes it up to the top of the trading range of the past 18 months, it will double from here.”

Mineralized Systems Connected

An induced polarization (IP) geophysical survey last month followed upsampling, prospecting, and mapping at Deer Horn in 2022 and 2023 to extend the mineralized zone of the copper-gold porphyry and gold-silver-tellurium vein systems there to more than 17 kilometers, the company said.

The company will use the information and work from the previous two years to formulate a much larger drilling program next year.

Streetwise Ownership Overview*

First Tellurium Corp. (FTEL:CSE; FSTTF:OTCQB)

	Retail: 89%
	Management/Insiders: 11%

89%

11%

^*Share Structure as of 7/21/2023

Source: First Tellurium Corp.

“Our prospecting, mapping, and sampling over the past two years has given us an extensive base of information to support the drilling and IP survey,” Docherty said. “What we have learned is that both the copper-gold porphyry target and gold-silver-tellurium vein system extend much farther than we first understood. Even more important is the discovery last month that the two mineralized systems are connected, supporting the premise that the property could support a large copper-gold porphyry across ground that has never been explored.”

Ownership and Share Structure

According to the company, 11% of First Tellurium is owned by management and insiders.

Docherty owns 10.6% or 7.7 million shares, Director Josef Anthony Steve Fogarassy has 1.38% or 1 million shares, and Director Lyle Allen Schwabe has 0.73% or 0.53 million shares. There are no institutional investors, and the rest is retail.

The company has a market cap of CA$8.66 million, with about 73 million shares outstanding and 63.3 million free-floating. It trades in a 52-week range of CA$0.245 and CA$0.085.

Important Disclosures:

First Tellurium Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Tellurium Corp.
Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Energy Financial News

25 Oct

US tightening sanctions on Iran oil could impact your investments

By George Prior

Should the US tighten sanctions on Iran’s crude oil exports in response to the country backing Hamas, it will impact investment portfolios around the world, says the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

The analysis from deVere Group’s Nigel Green comes ahead of a widely expected ground offensive by Israel into Gaza, which could shift the mood music for the West’s response to Iran.

He says: “These sanctions, while driven by geopolitical concerns, are likely to significantly impact portfolios for individual and institutional investors globally. As ever, with increased volatility, there will be fresh opportunities and fresh risks.

“Portfolios that include energy sector assets can be directly affected by the sanctions on Iran’s crude oil. Iran is a major oil producer, and restrictions on its exports can result in a reduction in global oil supply, which, in turn, could boost the profitability of energy companies.

“While some energy stocks may benefit from rising oil prices, others may face challenges due to increased production costs.

“Dividend stocks in the energy sector could see price increases, which might be positive for income-focused investors. However, dividend sustainability may be threatened if higher oil prices lead to increased expenses for energy companies.”

The rise in oil prices due to sanctions can lead to broader economic consequences, particularly in the form of inflation.

“Central banks, which have been battling to bring down multi-decade high inflation peaks over the last two years, may respond to rising inflation by considering increasing interest rates again.

“Higher interest rates make borrowing more expensive for businesses, impacting their expansion plans and investments. This, in turn, affects stock prices and overall portfolio performance.”

Nigel Green continues: “Companies across various industries would also face increased production costs due to higher oil prices. These added expenses can pressure businesses to pass the costs onto consumers, potentially impacting their profitability and share prices.

“Developing economies are particularly vulnerable to oil price spikes. Many of these countries rely heavily on imported oil, and surging prices can strain their trade balances and currencies. As such, investors with heavy exposure to these markets need to be extra cautious as risks are heightened.

“In addition, changes in oil prices influence currency exchange rates. Investors in currency markets may need to navigate these shifts, which can impact the value of their investments.”

Sanctions on Iranian oil can introduce geopolitical risks to your investment portfolio. To mitigate these risks, you need to ensure proper diversification of your portfolio across different asset classes, industries, and geographical regions to spread risk and reduce the impact of sanctions on specific sectors.

Also, you should develop a risk management strategy that includes setting stop-loss orders, adjusting your asset allocation, and staying informed about geopolitical events that can impact your investments.

Working with financial advisors who can provide insights and recommendations tailored to your specific investment goals and risk tolerance is likely to prove highly beneficial.

“The US tightening sanctions on Iranian oil could have a negative impact on individual and institutional investment portfolios by disrupting the energy sector, contributing to inflationary pressures, and intensifying geopolitical risks. You need to be aware of the risks – but also the opportunities,” concludes the deVere Group CEO.

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices across the world, over 80,000 clients and $12bn under advisement.

Economics & Fundamentals Opinions

25 Oct

Vertical Solar Startup Sells Third Tower, First in US Market

Source: Streetwise Reports (10/24/23)

When we last reported on Three Sixty Solar Ltd., the upstart Canadian solar firm had just signed a letter of intent for its second tower installation. The company has now announced a third sale, its first in the US market.

Three Sixty Solar (VSOL:NEO;VSOLF:OTC) is a Canadian company specializing in vertically-oriented solar equipment supply. The company’s premier product line is the (patent-pending) SVS series commercial solar tower concept.

This high-density, clean energy solution is built on its own free-standing tower, meaning it can be built adjacent to structures requiring power, thereby minimizing line loss and maximizing energy delivery in cluttered environments where traditional renewable solutions are difficult to install.

In deploying Three Sixty Solar solutions as multi-tower installations, developers can capitalize on the spaces between towers to better leverage land assets for other revenue-generating activities. Each tower offers a reliable, clean energy solution with minimal environmental and habitat impact, maximizing power capture while at the same time minimizing utility structure footprint.

The company’s subsidiaries include Three Sixty Solar Operations Ltd, Victory Exploration Inc., and Liberty One Utah Inc.

The Catalyst: Third Tower Sale, First in the US

On October 19, Three Sixty Solar Ltd. announced that it had signed a non-binding letter of intent (LOI) with Rocky Mountain Log and Timber (“RMLT”). RMLT authorized the purchase of an SVS series solar tower for installation at its facility in Hamilton, MT. RMLT is a builder of premium log homes and produces its own lumber.

RMLT expects the electricity generated by the tower to offset power requirements in its milling operations. As per the LOI, the parties are undertaking an energy optimization study, intending to reach a binding purchase order by November 30, 2023.

In addition to acting as a secondary power source to drive operations, the new tower will include technology from Hook’d Broadband to provide site-wide broadband connectivity.

A recent Stratistics MRC report points out that the global solar farm sector accounted for US$76 billion in 2020 and is forecasted to reach US$296 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.5%.

Brian Roth, Three Sixty Solar’s CEO, says he is “thrilled to have signed the letter of intent to secure our first commercial sale in the United States with Rocky Mountain. Rocky Mountain is focused on providing premium homes, often in remote locations.

I believe that our solar tower technology is an ideal solution to partner with many of the communities that they help build, and I’m excited for the opportunity to demonstrate the technology at their headquarters.”

Jake Hayes, owner of Rocky Mountain Log and Timber, explains that his company was “looking for ways to add renewable energy to power our operations and to offer to our customers.”

“I believe that the solar tower technology that Three Sixty has developed is a perfect fit for us to generate localized independent power,” he says. “I’m also excited to include the Hook’d Broadband technology and be able to provide a connectivity solution to our clients on future projects. We are looking forward to working with Three Sixty and becoming an advocate for the solar tower solution.”

For his part, Three Sixty Solar CEO Roth says, “I look forward to working with Jake and his team to deploy the tower in Hamilton and to then offer it cooperatively to their customers throughout the northwest.”

Why This Sector? Taking the Green Energy Revolution Skyward

Three Sixty Solar’s Tower-based solutions offer a relatively new twist on legacy solar technology, one that makes solar power a more appealing solution in far more potential use cases.

For example, when Three Sixty Solar signed its first LOI with Cattail Crossing Golf and Winter Club in Sturgeon County, Alberta, club owner Mark Beck said the club had been looking for ways to add renewable energy to the operation but couldn’t find solar cells arrayed in a suitable configuration.

“The solar towers offered by Three Sixty are such a unique approach that we can easily make it fit and generate power for our irrigation systems, cart charging, and more,” Beck said. “We are looking forward to working with Three Sixty and becoming an advocate for the solar tower solution to our friends in the golf community.”

“We, therefore, stay long, and Three Sixty is rated an Immediate Strong Buy as soon after the open as possible,” Technical Analyst Clive Maund said.

“[Cattail Crossing has] substantial power needs and don’t want to give up their land because, obviously, that takes up space they need for the course,” explained Three Sixty Solar’s CEO Roth at the time, adding that countries have been “throwing record amounts of money at these types of technologies and trying to green our electricity grid. There’s just a huge opportunity to clean up our electricity production while . . . being very cost competitive with the older technologies.”

Indeed, a recent Stratistics MRC report points out that the global solar farm sector accounted for US$76 billion in 2020 and is forecasted to reach US$296 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.5%.

Canada is targeting net zero emissions by 2050 and has launched a CA$964 million program, while the United States Inflation Reduction Act commits US$370 billion to fund green energy. The European Union has an energy target of at least 32% from solar by 2030, while the European Green New Deal envisions a climate-neutral continent by 2050.

Why This Company? Legacy Solar Eats Footprint

Solar power offers many advantages but generally does so at a significant cost in terms of space. Solar capture generally requires considerable space, and in many tight real estate markets, space is at a considerable premium.

Most industrial facilities don’t have enough additional land nearby to host a legacy solar array large enough to provide all power needs. Some compromise by positioning solar cells on their roofs, but these solutions can be expensive to maintain, unsafe for workers, and even cause considerable fire hazards.

Roth explains that “Three Sixty Solar’s unique tower concept is a high density, clean energy solution that uses up to 90% less land space than conventional solar farms.”

This unique setup allows for proximity to legacy infrastructure, “minimizing line loss and maximizing energy delivery in places where renewables have been difficult to install until now.”

In addition to reducing the land space requirement for installation, the company’s vertical farms keep solar infrastructure off of commercial, residential, and industrial roofs.

It’s a foregone conclusion among many analysts that solar power will continue to grow as a major portion of the emerging green economy. Three Sixty Solar’s solutions are designed to make the real-world impact of this accelerating transition as soft-touch as possible.

Why Now? Three LOIs In the Bag, First US Client

With their first three projects well begun, it seems that Three Sixty Solar — Formerly Liberty One Lithium Corp., with an IPO date of 11-Aug-1994 — is finally off to the races.

On July 24, when the first LOI was announced, Technical Analyst Clive Maund opined that “Three Sixty Solar is an interesting solar company because it makes unique vertical array solar towers which have tremendous space-saving and aesthetic advantages in solar power generation. For this reason, the company and its stock are considered to have a lot of growth potential.”

Maund says that he “started looking at it in April, and after we bought it at that time, it had a sharp rally that was followed by a nasty steep drop into mid–late May when we bought it again, and so after the strong rally of recent weeks we are up on our last purchase but still slightly down on the first purchase.”

Streetwise Ownership Overview*

Three Sixty Solar (VSOL:NEO;VSOLF:OTC)

	Retail: 51%
	Strategic Investors: 28%
	Management & Insiders: 21%

51%

28%

21%

^*Share Structure as of 7/25/2023

Source: Three Sixty Solar

“It is thus interesting to see this morning’s news that the company is making its first sale of one of its vertical towers. Now, you may yawn at this and say, ‘So what? – big deal, they sold a tower to a golf course.’ But the point is there are a lot of golf courses and various other venues and places across the U.S. and across the world that have the need for this space-saving technology, and if they catch on to it, sales could be huge, so it really could be a big deal after all.”

“We, therefore, stay long, and Three Sixty is rated an Immediate Strong Buy as soon after the open as possible.”

Ownership and Share Structure

According to the company, about 21% of Three Sixty Solar is held by management and insiders. CEO Roth owns 3.43%, founder and Director Peter Sherba owns about 30%, and Director Scott McLeod owns about 0.21%, Reuters reports.

About 28% is held by strategic investors, and the rest, about 51%, is retail.

Three Sixty Solar’s market cap is CA$9 million, with about 43.5 million shares outstanding. It trades in a 52-week range of CA$0.14 and CA$1.29.

Important Disclosures:

Three Sixty Solar has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Three Sixty Solar.
Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
The article 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. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Energy Opinions

25 Oct

Copper Cacophony

Source: Michael Ballanger (10/23/23)

With lots of noise surrounding the Electrification Movement, Michael Ballanger of GGM Advisory Inc. shares what he believes is really going on, as well as two stocks that may be worth looking into.

The big news for the past month has been the superb performance of the gold market, which, as of today’s earlier high print at US$2,009, was ahead 10.17% since the lows of October 6^, making it one of the most powerful moves of the year. It has all of my gold bug buddies dancing in the streets, oblivious to the ravaging effect of rising mortgage rates and the horrific events in the Middle East.

Mind you, I cannot tell you how horrified I was to see a pick-up truck full of young people riding around Toronto blaring horns and cheering the actions of Hamas last weekend. However, for this septuagenarian scribe, it is the rattle and din — the cacophony — of noise surrounding the copper market that had me scratching my head.

I cannot pick up a magazine (or click on a website) these days without reading multiple paragraphs on the “new energy economy” that is arriving this decade that excludes ICE’s and replaces them with EV’s. I have fully embraced the notion of an electrically powered world where the cleanest of all energy sources — nuclear power — boosts global electrical output by many multiples, leaving literally nothing of harm in its wake.

I accept the proposition that the world is going to need to amplify its electrical storage capacity and, in doing so, increase demand and usage of battery elements — cobalt, nickel, and lithium.

The world market for elements such as uranium and lithium has also recognized the oncoming tsunami of demand by re-pricing both of them to multi-year highs as stockpiling has begun in earnest as governments move to re-classify them as “critical metals.” The narrative surrounding the “Electrification Movement” and the three main metals constituting the “electrification trilogy” is filled with a plethora of “noise” — scatterbrained snippets of inane opinions and theories both bullish and bearish and always rebutted forcefully by those cretins in the oil and gas industry that sit back and howl with laughter at the legions of “greenies” and “libtards” that actually believe that gas stations will have disappeared by 2030.

Between the Gen-Z-ers gluing themselves to highways and the U.S. government emptying the Strategic Petroleum Reserve in order to teach Vlad the Impaler a lesson, the entire narrative surrounding the move to increase the electricity grid is one giant cacophony of disjointed arguments.

However, if there is one conundrum that baffles me, it is the copper market. Markets pronounced their verdicts on the likelihood of a successful transition to electric by way of a massive move in prices for lithium carbonate, advancing twelvefold from mid-2020 to late 2022.

Lithium

Likewise, markets seem to buy into the prospect of attitudes toward nuclear energy changing for the better as uranium prices have moved from sub-US$20/lb. to over US$73/lb. Between late 2017 and late 2022, but nowhere near the highs of 2009 at almost US$135/lb.

Uranium

Glancing at the charts of two of the three critical materials required for the electrification transition to occur, you would conclude that those markets have reacted to the certainty of accelerated demand and probable shortage conditions to boot.

A take-it-to-the-bank lay-up, you say?

Not so fast when you look at the chart of the one metal that makes it all possible — copper.

Copper

I ask myself a critical question: “How can investors take the new clean energy source metal (uranium) and the energy storage metal (lithium) to record highs and leave the metal necessary in the transmission of electricity (copper) behind and in a bear market?”

They say copper is responding to the prospect of lower growth brought about by higher interest rates. They point to debt-ridden property giants in China curtailing purchases typically intended for new construction projects as the reason that there was a 50% increase in LME inventories last month. Yet, looming behind all of this short-term noise are reports from the IEA and the International Copper Association that project a 26% increase in supply by 2035, which is sharply below the 50% increase in anticipated demand.

From my vantage point, you cannot have large sovereigns stockpiling uranium and lithium today while ignoring copper because of the short-term cacophony of possible price restraints. If the world fails to revise the permitting process allowing the unimpeded construction of new, high-capacity copper mines, there is going to be a problem. More importantly, if the capital markets continue to treat copper like the freckle-faced, misbehaving brat in the corner of the classroom, investors will continue to be wary of making new investments in junior exploration and development companies that are always the originators of the world’s new “discoveries of merit” that grow to supply the world with the ores so critical to the human condition.

This is precisely why it all must change, and that change will begin with a turn in the price trend for copper. I have never been able to hear the crack of a starter’s pistol at the beginning of a bull market, and I doubt that there will be anything closely resembling one this time around. However, it seems to me, as plain as the nose on one’s face, that copper will be in shortage conditions between now and 2025 with the severity growing exponentially as the fifty-seven nuclear reactors currently under construction around the world are fired up.

Gold (and Silver)!

After major rallies in gold or stocks or Bitcoin or anything, for that matter, the Twitterverse is always littered with thousands of tweets by individuals taking credit for calling the exact bottom. Well, for gold, here is the chart I posted on October 3, the day before VanEck Gold Miners ETF (GDX:NYSEARCA:) bottomed into an RSI of 26.79 and a price of US$25.62. Thirteen days later, and at 11:29 this morning, it hit US$30.16.

It was a superb call but one that has been very rare in this bear market year.

As the saying goes: “You have to be good to be lucky (and vice-versa)…”

SPDR Gold Shares ETF (GLD:NYSE) was bought at US$172.50 on Canadian Thanksgiving Monday with the GLD December US$170 calls bought on a scale-in order during the week of October 9-12.

I backed away from the Friday gap and instead filled the final 20% into the Monday pullback resulting in an average price of CA$7.78 per contract. This morning, the GLD:US exploded up into overhead resistance with a print up to US$185.23 but I established a target price of US$184.00 and told subscribers that only a move through that level — the July highs — would take the RSI into “overbought” conditions, which it did, on a move to 71.52 before backing off.

The Twitterverse was inundated with words like “shenanigans,” “slammies,” and “manipulations,” but the reality was that gold was simply overbought this morning, and because of that, I put out “Sell” on the remaining 50% at US$16.00 which when added to the US$14.75 I got yesterday, gave me an average sell price of US$15.375 versus the average cost of US$7.78 resulting in a 97.6% return in under two weeks.

I put out a note this morning that showed this chart:

You will notice that gold moves in an inverse direction to interest rates, and that is not really much of a surprise to anyone who follows the gold market. You can see how gold went into a prolonged decline at the exact point where the 10-year yield started its ascent from the 3.30% level back in April, but in and around the start of October, that negative correlation ended, and gold and yields have been rising in tandem ever since.

Now, everybody with a keyboard and a Twitter membership has been explaining in torrid detail the reasons for gold’s explosive move, but if there is one thing about gold that the “younguns” do not seem to grasp, it is that gold, unlike everything else on the planet, has an uncanny predictive ability. The reasons it goes up or down are usually only revealed later and are never the reasons given on Kitco or anywhere else in the mainstream media, for that matter.

Gold moved up US$60 per ounce on Friday, October 6, giving rise to speculation that someone was “front-running” knowledge of the impeding Hamas invasion. When gold bottomed in mid-March 2020, neither the global central bankers nor the elected leaders had said anything about trillion-dollar bailouts or helicopter cash drops to households around the world.

Gold sniffed it out and it was only months later, after it had rallied from US$1,450 to US$2,089 that the world learned of the sheer magnitude of the monetary and fiscal stimulus packages that were thrown with reckless abandon at what turned out to be a nasty little flu bug and not the second coming of Ebola or the Bubonic Plague.

Something has changed in the gold market, and I am the first to admit that I know not of its origin. All I know is that when gold moves in a manner that is unorthodox, all I can do is apply my rudimentary knowledge of technical analysis coupled with ample doses of prayer, rabbit’s feet, four-leaf clovers, and Haitian Death Chants and hope to hell that I am on the right side.

Gold goes wherever it wants to go. If we are lucky, we find out the reason weeks or months later.

Notice how silver was lagging gold through the last six months, down 14.77% to gold’s 5.47% decline.

Suddenly and with little warning, silver started to outperform gold, and as one of my most reliable indications of the health (or frailty) of any bull market in the precious metals, the silver market is now officially ahead of gold for the October monthly performance.

If this continues into month-end and on into November, I expect to see gold at new all-time highs and silver well into the US$30s. I am not yet adding to my silver miners, having added Norseman Silver Ltd. (NOC:TSX.V; NOCSF:OTCQB) earlier in the month, but they are now officially on my radar screen, starting with Pan American Silver Corp. (PAAS:TSX; PAAS:NASDAQ) as a possible option play.

Stocks

I own a modest position in the SPDR S&P 500 ETF (SPY:NYSE) and told everyone this week that while I am betting on a year-end rally to take the SPY:US to between US$452 and US$457, my abort button is programmed to activate the moment the U.S. 10-year prints 5.25%.

It went out at 4.917% after trading up to 4.999% this morning. If this spike in long rates does not soon abate, I cannot see stocks mounting an advance into year-end and fear a 2018-type decline instead, which would not be fun.

The week ended with me enjoying something that has been annoyingly elusive in 2023. It is called a “capital gain“. If it were not for some fortuitous trades in the SPDR S&P 500 ETF (SPY:NYSE) and GLD:US markets this year, I would be lamenting a pitiable performance in many of the junior miners I own.

To be absolutely clear, I do not need to hear that I should not worry “because everyone else has been demolished, too,” as a panacea for my junior gold and silver portfolio. The next time I hear that insincere babble, I am reaching for my Louisville Slugger that stays at all times beside my Hockey-Night-in-Canada chair with the vibrating backrest.

Forewarned is forearmed…

Important Disclosures:

Norseman Silver Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Norseman Silver Ltd. and Pan American Silver Corp.
Michael Ballanger: I, or members of my immediate household or family, own securities of: All. I determined which companies would be included in this article based on my research and understanding of the sector.
Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

Metals Opinions

25 Oct

The cryptocurrency market digest (BTC, MINA). Overview for 25.10.2023

By RoboForex.com

The BTC on Wednesday is correcting, hovering at 34,200 USD. The weekly increase amounts to 18.8% but at certain moments it exceeded 22%.

Cryptocurrencies are so popular these days that do not even encounter technical pullbacks. At the platform, they think that the moment when a license for spot bitcoin ETF will be granted to funds is near. This means it is high time to buy the base asset that will double or triple in price in case of a positive decision. The agitation we are witnessing is based in this.

The latest news about the arbitration court decision supportive of Grayscale was also interpreted by the market as a precedent.

This level of optimism can hold BTC at the current level for some time but it needs new triggers to continue rising.

The technical picture does not exclude a correction to 29,500 USD upon skyrocketing previously. Next, the cryptocurrency could rise to 31,200 USD and 32,000 USD.

The cryptocurrency market capitalisation has increased to 1.26 trillion USD. The BTC share amounts to 53.1%, while the ETH share has dropped to 17.2%.

Mastercard wants to cooperate with cryptocurrency startups

The payment giant Mastercard is considering options of cooperation with technological startups in the cryptocurrency sector. Particularly, the company is interested in organisations that develop and create self-service wallets, primarily MetaMask and Ledger.

MINA token added 100% overnight

The Mina Protocol (MINA) coin rose 100% overnight, amounting to 0.86 USD. This is its new year high. The reason for the skyrocketing was the news about the listing of the exchange at a South Korean platform against the won.

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.

Cryptocurrencies Financial News

25 Oct

Why This Silver Stock Is up 250% Last Week?

Source: Michael Ballanger (10/23/23)

After reviewing the company last week, Michael Ballanger of GGM Advisory Inc. shares his current thoughts on Norseman Silver’s stock.

Phones and email inboxes are inundated this morning with cascading queries about Norseman Silver Ltd. (NOC:TSX.V; NOCSF:OTCQB), which was highlighted 15 days ago on October 3 after I had a conference call with V.P. Exploration Merlin Marr-Johnson, President Sean Hurd, and Chairman Campbell Smyth.

The stock was trading at CA$0.035, and while I was doing my best to pound the table (the way I did in August 2022 with Allied Copper at CA$0.08), these moribund junior mining markets may have tempered my enthusiasm “just a bit.”

As it always turns out, I should have been more animated as the stock has advanced 250% since the CA$0.035 lows of early October and has traded today as high as CA$0.105 on volume of 2.

403,590 shares. Many of you own Norseman, so it was my hope that you could average down over the balance of October, but Sunday’s pop has it on more than a few radar screens, and the Streetwise report that featured NOC on Monday is apparently getting pretty good traction.

If the company’s big European following (Merlin is in London) starts to get the fever, I see CA$0.20-0.25 before any real supply shows up, so use a CA$0.10 limit to add to the higher-priced positions and get your cost down as far as you can. Norseman is going to be a full-fledged, card-carrying member of the “electrification trilogy” within a few weeks, and that should dynamically change the narrative…

Buy NOC.

Fundamental Data – NOC

Security Type: Equity
Shares Issued: 68,118,157
Market Cap: 6,131,000
Year High: 0.18
Year Low: 0.035
Sector: 15104040 – Precious Metals & Minerals

Please see TSX-V for dividend and earnings information.

Norseman’s properties are in British Columbia, Canada, and Rio Negro, Argentina. The four projects in British Columbia are highly prospective of silver and copper mineralization.

Taquetren in Argentina has discovery potential in a mining-friendly district, host to one of the largest silver deposits in the world. The long-term vision is to advance the projects to development.

Important Disclosures:

Norseman Silver Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Norseman Silver Ltd.
Michael Ballanger: I, or members of my immediate household or family, own securities of: All. I determined which companies would be included in this article based on my research and understanding of the sector.
Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Michael Ballanger Disclosures

Financial News Metals

25 Oct

Inflationary pressures are rising sharply in Australia. Corporate earnings keep indices from falling

By JustMarkets

As of Tuesday’s stock market close, the Dow Jones Index (US30) was up by 0.54%, while the S&P 500 (US500) increased by 0.73%. The NASDAQ Technology Index (US100) closed positive by 0.93% yesterday. Stocks rose moderately on Tuesday on the back of better-than-expected corporate earnings results. A negative factor for stocks was Tuesday’s stronger-than-expected US manufacturing activity data, which was hawkish for Fed policy. The S&P US manufacturing PMI for October unexpectedly rose to a 6-month high of 50.0, which was stronger than expectations of a decline to 49.5.

General Electric (GE) closed higher by more than 6% after reporting third-quarter adjusted EPS of 82 cents, well above the consensus of 56 cents, and raising its 2023 adjusted EPS guidance. Verizon Communications (VZ) shares are up more than 9%, leading gains in the S&P 500 (US500) and Dow Jones Industrials (US30), after the company reported third-quarter adjusted earnings per share of $1.22, which was better than the consensus estimate of $1.18. Coca-Cola Co (KO) closed higher by more than 3% after reporting 11% organic revenue growth in the third quarter, well above the consensus of 6.91%. Shares of Google Alphabet (GOOG) Inc. are down more than 5% after weaker-than-expected revenue growth from its cloud computing operations. Microsoft (MSFT) reported fiscal first-quarter results on Tuesday that beat Wall Street forecasts, as the tech giant’s investments in artificial intelligence fueled growth in its Azure cloud business. The stock price rose more than 4% after the report was published.

In the Middle East, French President Macron met with Prime Minister Netanyahu in Israel on Tuesday before calling for an international coalition to fight Hamas and warning other Iranian-backed militant groups against opening new fronts in the war between Israel and Hamas.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE40) rose by 0.54%, France’s CAC 40 (FR40) gained 0.63% on Tuesday, Spain’s IBEX 35 (ES35) fell by 0.28%, and the UK’s FTSE 100 (UK100) closed positive 0.20%.

The Eurozone manufacturing PMI for October unexpectedly fell by 0.4 to 43.0, weaker than expectations of a rise to 43.7. The German GfK consumer confidence index for November fell by 1.4 to a 7-month low of 28.1, weaker than expectations of 27.0. In her speech yesterday, ECB President Lagarde told the Presidents of the European Commission, European Council, and Eurogroup that stagnation and downside risks await the Eurozone economy in the next few quarters, although inflation risks have become more balanced.

Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) increased by 0.20%, China’s FTSE China A50 (CHA50) added 0.03%, Hong Kong’s Hang Seng (HK50) ended the day down by 1.05%, and Australia’s ASX 200 (AU200) ended Tuesday positive 0.19%. Chinese stocks continued their recovery rally on Wednesday after the government announced plans for a massive bond issue. Beijing announced plans to issue 1 trillion yuan ($1=7.3088 yuan) worth of government bonds to support the economy. Nevertheless, Chinese stocks remain near 2023 lows, having suffered significant losses on fears of slowing economic growth and a collapse in the real estate market. Despite Wednesday’s optimism, the factors that drove domestic markets lower are still in place.

Japan’s business activity index for the manufacturing sector for October was unchanged at 48.5. The services PMI for October fell by 2.7 to 51.1, the lowest reading in 10 months.

In Australia, the consumer price index unexpectedly rose. In annual terms, the inflation rate rose from 5.2% to 5.6%. In quarterly terms, the index rose from 0.8% to 1.2%. Such data gives grounds for further interest rate increase by the Reserve Bank of Australia next week.

S&P 500 (F)(US500) 4,247.68 +30.64 (+0.73%)

Dow Jones (US30) 33,141.38 +204.97 (+0.62%)

DAX (DE40) 14,879.94 +79.22 (+0.54%)

FTSE 100 (UK100) 7,389.70 +14.87 +(0.20%)

USD Index 106.26 +0.73 (+0.69%)

News feed for 2023.10.25:

– Australia Consumer Price Index (m/m) at 03:30 (GMT+3);
– German Ifo Business Climate (m/m) at 11:00 (GMT+3);
– US Building Permits (m/m) at 15:00 (GMT+3);
– US New Home Sales (m/m) at 17:00 (GMT+3);
– Canada BoC Monetary Policy Report at 17:00 (GMT+3);
– Canada BoC Interest Rate Decision at 17:00 (GMT+3);
– US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
– Canada BoC Press Conference at 18:00 (GMT+3);
– Eurozone ECB President Lagarde Speaks at 20:00 (GMT+3);
– US Fed Chair Powell Speaks at 23:35 (GMT+3).

By JustMarkets

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News

25 Oct

Mid-Week Technical Outlook: Commodities & Indices

By ForexTime

Crude falls below 50-day SMA
Brent wobbles above $88
SPX500_m slips below 200-day SMA
NQ100_m back within range

Asian markets rose on Wednesday after Chinese authorities approved a whopping 1 trillion yuan in government bonds to support its economy.

In Europe, shares slipped despite the positive mood from Asia as investors focused on a slew of mixed earnings reports from the region. Looking at currencies, the dollar remains steady ahead of a speech by Fed Chair Jerome Powell while the euro is struggling for direction as the ECB meeting looms. Regarding commodities, oil prices remain under pressure amid concerns over weak European demand with Brent wobbling above $88 as of writing.

This has been an incredibly eventful week for markets thus far as the combination of geopolitical risk, top-tier economic data, and corporate earnings influence sentiment.

Given the ongoing geopolitical risks and slew of corporate earnings this week, our focus falls on commodities & indices today.

WTI Crude falls below 50-day SMA

Oil bears are drawing strength from concerns over weak European demand and cautious optimism over the Israel-Hamas conflict not spreading to other regions.

The global commodity has shed almost 5% this week with prices trading below $85 as of writing. Although technical indicators are slowly shifting in favour of bears, bulls remain protected by a couple of key support levels.

Sustained weakness below the 50-day SMA may encourage a decline toward $81.10 where the 100-day SMA resides.
Should prices push back above $86.40, this could trigger an incline towards $88.40 and $91.00, respectively.

Brent wobbles above $88

Brent remains under pressure on the daily charts with bears grinding into the $88 support level. With prices already trading below the 50-day SMA and the MACD trading below zero, further downside could be on the cards.

A strong breakdown below $88.00 may open a path toward $85.30 and $83.00 respectively.
If prices can keep above $88.00, this could trigger a rebound back above the 50-day SMA before bulls target $94.10.

SPX500_m slips below 200-day SMA

The SPX500_m could experience a major breakdown if prices fail to push back above the 200-day SMA at 4250.

Prices are already bearish on the daily charts as there have been consistently lower lows and lower highs, the index is respecting a bearish channel while the MACD trades below zero. With earnings season in full force, the next few days and weeks promise to be eventful for the SPX500_m.

A solid daily close below 4210 may spark a selloff towards levels not seen since May 2023 at 4140.
Should prices push back above the 200-day SMA, prices could push higher towards 4332.

NQ100_m back within a range

This may be a big week for the NQ100_m as the biggest names in tech announce their earnings this week. Prices seem to be trapped within a range with support at 14550 and resistance at 14900. A major breakout could be on the horizon with the right fundamental spark.

Should prices secure a solid daily close below 14550, this may open the doors towards 14250.
A move back above 14900 could inspire bulls to challenge the 50 and 100-day SMA before testing 15300.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Energy Opinions

24 Oct

The situation in the Middle East has a negative impact on market sentiment

By JustMarkets

American stock indices traded yesterday without any unified dynamics. At Monday’s close, the Dow Jones Index (US30) decreased by 0.58%, while the S&P 500 Index (US500) was down by 0.17%. The NASDAQ Technology Index (US100) closed positive by 0.27%. The decline in T bond yields on Monday was bearish for the US dollar and bullish for stock indices. The dollar on Monday initially found support in the jump in the 10-year bond yield to a new 16-year high, but then bond yields reversed and headed lower. From a fundamental perspective, the tightening of financial conditions in the US is certainly reducing the need for further monetary tightening, and many US Fed officials have moved to a less hawkish tone. Markets are currently pricing in just a 2% chance that the FOMC will raise the lending rate by 25 bps at its next meeting, which ends on November 1, and a 23% chance that the rate will be raised by 25 bps at its December 13 meeting.

The fear that the war between Israel and Hamas could escalate into a regional conflict is weighing on market sentiment. Western countries stepped up efforts to prevent the war between Israel and Hamas from escalating, and EU leaders supported the UN’s call for a “humanitarian pause” in the war. President Biden held talks with the presidents of Canada, France, Germany, and Italy to strengthen coordination among the allies. At the same time, late yesterday, there was news of explosions at three US military bases in the Middle East. This news interrupted Biden’s live-streamed remarks. Intelligence reports indicate that Iranian-backed militias are poised to step up attacks on US troops in the Middle East. Israel has said it supports diplomatic efforts to get Hamas to release hostages from Gaza, which could delay a possible ground invasion, but is not going to wait long to launch a ground offensive. Iran and its proxy forces in Lebanon, Iraq, and Yemen have warned they could retaliate against Israel if Israeli troops enter Gaza.

Equity markets in Europe traded flat yesterday. Germany’s DAX (DE40) rose by 0.02%, France’s CAC 40 (FR40) added 0.50% on Monday, Spain’s IBEX 35 (ES35) decreased by 0.37%, and the UK’s FTSE 100 (UK100) closed negative by 0.37%.

British consumers are curbing their spending ahead of the festive season, and the latest survey from Gfk suggests that the weather is not the only reason for this. Retail sales fell by 0.9% in September, well above expectations of a 0.3% decline. The Gfk Consumer Confidence Index fell back to 30. The outlook for the British economy remains bleak as growth is sluggish, and recent economic indicators point to a slowdown in manufacturing activity, while UK inflation remains stubbornly high.

The potential for an escalation of the conflict between Israel and Hamas and poor corporate earnings have left investors looking for safe havens, of which there are few left. The US dollar is not in the best position at the moment, as the US Federal Reserve does not plan to continue its tightening policy in the near future. According to economists, apart from the US dollar, only gold and the Swiss franc remain as safe havens. The Swiss franc is a longtime safe haven asset that recently hit its highest level against the euro since 2015 and has held up against the losses of its traditional peers.

Last Wednesday, the US said it would ease sanctions on Venezuela’s oil exports for six months in exchange for measures to ensure the country holds fair presidential elections next year. The easing of sanctions will bring additional oil supplies to the global market, which some analysts estimate will be about 200,000 barrels per day. However, oil traders believe that tension in the oil market will still remain due to the extension of the OPEC+ agreement on production cuts.

Asian markets were mostly declining yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.83%, China’s FTSE China A50 (CHA50) was down by 0.62%, Hong Kong’s Hang Seng (HK50) lost 0.72% on the day, and Australia’s ASX 200 (AU200) was negative by 0.82% on Monday. On Tuesday, most Asian stocks extended losses after weak business activity data in Japan and Australia. At the same time, Chinese markets rebounded from pre-pandemic lows thanks to a government fund starting to buy some stocks.

Japanese government bond (JGB) yields rose to new multi-year highs on Monday as investors assess the likelihood that the Bank of Japan will continue to adjust its yield curve control (YCC) policy next week. One possibility being discussed is an increase in the 1% ceiling for the 10-year yield.

S&P 500 (F)(US500) 4,217.04 −7.12 (−0.17%)

Dow Jones (US30) 32,936.41 −190.87 (−0.58%)

DAX (DE40) 14,800.72 +2.25 (+0.015%)

FTSE 100 (UK100) 7,374.83 −27.31 (−0.37%)

USD Index 105.62 −0.54 (−0.51%)

News feed for 2023.10.24:

– Australia Manufacturing PMI (m/m) at 01:00 (GMT+3);
– Australia Services PMI (m/m) at 01:00 (GMT+3);
– Japan Manufacturing PMI (m/m) at 03:30 (GMT+3);
– Japan Services PMI (m/m) at 03:30 (GMT+3);
– UK Unemployment Rate (m/m) at 09:00 (GMT+3);
– German Manufacturing PMI (m/m) at 10:30 (GMT+3);
– German Services PMI (m/m) at 10:30 (GMT+3);
– Australia RBA Gov Bullock Speaks at 11:00 (GMT+3);
– Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
– Eurozone Services PMI (m/m) at 11:00 (GMT+3);
– UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
– UK Services PMI (m/m) at 11:30 (GMT+3);
– Eurozone ECB President Lagarde Speaks at 15:30 (GMT+3);
– US Manufacturing PMI (m/m) at 16:45 (GMT+3);
– US Services PMI (m/m) at 16:45 (GMT+3).

By JustMarkets

Economics & Fundamentals Financial News

24 Oct

Murrey Math Lines 24.10.2023 (AUDUSD, NZDUSD)

By RoboForex.com

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD quotes are below the 200-day Moving Average on H4, revealing the prevalence of a downtrend. The RSI is nearing the resistance line. In this situation, a test of 5/8 (0.6378) is expected, followed by a rebound from this level and a decline to the support at 2/8 (0.6286). The scenario can be cancelled by rising above the 5/8 (0.6378) level. In this case, the pair could reach the resistance at 6/8 (0.6408).

On M15, after a rebound from 5/8 (0.6378), a further price decline could be additionally supported by a breakout of the lower boundary of the VoltyChannel.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD quotes are in the oversold area on H4. The RSI has broken the resistance line. In this situation, the quotes could rise above the 0/8 (0.5859) level, subsequently reaching the resistance level of 2/8 (0.5920). The scenario can be cancelled by a downward breakout of -1/8 (0.5828). In this case, the pair might drop to the support at -2/8 (0.5798).

On M15, the upper boundary of the VoltyChannel is broken. This increases the probability of a further price rise.

Article By RoboForex.com

Financial News Forex and Currency News

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