Market Wrap – The Sell Off Into The Close, Fed and China
Chris Temple joins me to outline why we saw the sell-off into the market close today. Maybe it was just traders locking in some gains before the Fed or maybe it was thanks to the update on trade talks referring to China not giving as much as Trump wants. We also quickly touch on a new recommendation Chris just made that he is very excited about.
Click here to visit Chris’s site for more information on his newsletter and recommendation.
Platinum at $859.
https://www.kitco.com/charts/liveplatinum.html
Gold $1302.
Surely some revision to the mean in Platinum is overdue as it is trading a significant discount to both Gold and it’s little brother Palladium. Fascinating markets.
Luke Gromen @LukeGromen
“I’m often asked what might a “nearly-binary political reaction” look like in commodity or gold markets. What’s happening in palladium is a small potential taste of what happens when we reach the “it matters” part of “It doesn’t matter until it matters”.
Another one that looks interesting is Enviroleach Technologies.
EnviroLeach Technologies Inc.’s (ETI:CSE; EVLLF:OTCQB) proprietary formula can extract palladium out of a multi-metal source and reduce it to an aqueous solution, it announced in a March 18, 2019 news release.
Specifically, on initial testing, the company’s product recovered 90% of contained palladium from ceramic-based catalytic converters in about two hours’ time. Electrowinning tests showed, on one sample, an 83% palladium recovery from a solution, which was achieved within 40 minutes.
The global automotive catalytic converter market report is expected to reach $183.4 billion by 2022, for a resulting CAGR between 2016 and 2022 of 7.7%, the release cited from an Allied Market Research report.
EnviroLeach will conduct further in-house testing to optimize chemistry and leach components, after which an external laboratory will evaluate them for validation.
Study also is being conducted on the use of EnviroLeach’s technology to extract other platinum group metals, such as platinum. Testing on a pilot scale in that regard could take place in Q3/19 or Q4/19.
A news release from March 11, 2019 announced results of testing by the outside firm SGS on the ability of EnviroLeach’s technology to extract gold. EnviroLeach contracted with this inspection, verification, testing and certification entity to conduct validation testing on its proprietary formulas.
The stock exploded the last few days on extremely heavy volume. Pulling back today.
Interesting find Charles. I’ll need to look into that a bit more as a downstream processor and recovery company. Thanks!
I bet there are going to be a lot of FAKE platinum bars…….the average consumer, can not tell the difference between platinum and silver……..JMO
Yeah, that wouldn’t be a surprise if people tried to use the high prices to dupe the dupes.
Group 10 Metals might be a good play here. It has pulled back quite a bit from its high. What’s your take Ex?
Yes, I own Group Ten Metals and have been nibbling at it lately. Platinum is sure to get re-rated over the next 12-18 months, and I like that they have land adjacent to both Stillwater’s big Palladium & Platinum mine, and the old Wellgreen group now (Nickel Creek Platinum).
They have the same backers & support team as Metallic Minerals with Greg Johnson at the helm of both companies. They have formed the Metallic Group combining forces.
___________________________________________
Metallic Minerals and Group Ten Metals Announce Formation of the Metallic Group of Companies
March 3, 2018
I didn’t know about the combo. Interesting and thanks. I had both companies on my radar for a while. Now I only have to buy one!
After reading the article It does not sound like the are combining the companies but more sharing of information and costs. I am not sure how it works from a corporate structure and accounting perspective and how exactly there will be cost savings. Makes me wonder if they are doing this to make the companies more attractive to a combined takeout by a larger mining company.
That is correct. When I said they were combining forces it was just for synergies between their 2 teams, but they aren’t merging. They have also brought a Copper company into the mix with their Metallic Group of Companies.
It is similar to how Osisko shares resources amongst their various companies like Osisko Mining, Oskisko Metals, Falco, Barkerville, and Minera Alamos.
Yep……been saying so for awhile……Wow….. Palladium …
I posted a couple of articles the other day…..concerning Palladium
Russian cornering market….and a good chart , showing it has gone parabolic ….
On March 19, 2019 at 7:22 am,
OOTB Jerry says:
NOW WE KNOW…….Palladium being CORNERED BY PUTIN……………
https://www.zerohedge.com/news/2019-03-19/palladium-panic-bid-record-highs-putin-corners-market
On March 19, 2019 at 9:03 am,
OOTB Jerry says:
Some nice long term charts…..
https://www.thetechnicaltraders.com/best-precious-metals-investment-and-trades-for-2019
Reply to this comment
Thanks OOTB. Good stuff. The Russians produce a lot from Norilsk Nickel. Maybe they are gaming the markets a bit, but South Africa has been a mess and has killed off a ton of production with mine closures and labor union BS. The supply is getting more limited, and I’m trying to find North American or Australian sources from miners in safer jurisdictions.
Another good reason why Bitcoin sucks………..lol
https://www.zerohedge.com/news/2019-03-19/bitcoin-volume-collapsed-venezuelan-blackout
Ex…..this is a complement to your post yesterday….on bitcoin cooling…..
You gotta watch out for Global Cooling and Bitcoin cooling 🙂
Cool Man…. 🙂
Monsanto suckers Bayer…….into taking over the RoundUp lawsuits……..
I thought those Germans were suppose to be smart……..LOL
I hope Bayer goes bankrupt, and Merck too.
Hey Bonzo, you might get a kick out of this:
https://www.youtube.com/watch?v=A4QLIQPYHww
Pretend they are taking aim at the banksters……….. 🙂
I’m impressed with the way the little girl handles hand-cannons that scare a lot of men. If anyone should be pro gun, it’s women.
“God Created Men and Sam Colt Made Them Equal!”
“If anyone should be pro gun, it’s women.”
Good point, I hadn’t thought about that. I will be sure to use that one of these days. Better be careful though–next thing you know feminazis will want ONLY women to be allowed guns!
Drug money….not flowing through the channels since Poppy died….I bet…..lol
https://www.zerohedge.com/news/2019-03-20/ubs-warns-q1-one-worst-recent-history-ibanking-revenue-implodes
The investment bank had “one of the worst first-quarter environments in recent history,” Ermotti said Wednesday, blaming it on the lack of merger or IPO activity outside of the U.S. As a result, UBS investment banking revenues were down about one third compared with a year ago. The bank is slowing hiring and some IT projects as it seeks to make up for weak markets.
But the biggest pain was for the UBS investment bank division, where Q1 continues a slide first observed in the final months of last year, when it posted a $47 million loss because clients, particularly in Asia,
ASIA………pop goes the weasel…..
Vinny Land…and the Neocons…..the shock and awe has over done it….Pence and Bolton need some hot seat action…………..jmo
https://www.zerohedge.com/news/2019-03-20/ford-invest-900-million-hire-900-new-electric-vehicle-plant-michigan
MORE Battery please…………Palladium might take a hit….no mufflers required… 🙂
In a world where EV hype is all the rage, Ford’s development of autonomous and electric vehicles is at the core of CEO Jim Hackett’s plan to remake the automaker. Since taking over as CEO in 2017, Hackett has been criticized by analysts for moving too slow to reposition Ford as the auto industry shifts to new technology and focuses more attention on electric vehicles, according to CNBC. Earlier this year, Ford announced a partnership with Volkswagen to share the costs of develop AVs and EVs.
Who needs who……Volkswagen or Ford………politics….
No sooner did news break that Ford will be laying off 5,000 workers in Germany
Wednesday Ford announced that its plans to spend $900 million and hire about 900 workers to build electric and self-driving vehicles in Michigan, while moving production of a small commercial van to Mexico from Europe.
How long have we been hearing the same old bs………
https://www.zerohedge.com/news/2019-03-20/neutered-fed-politically-trapped
The purpose of the Fed chiefs’ dog-and-pony show was to promote the notion that the Fed really really really (try not to laugh out loud) “cares” about the average American, even though 85% of the $30 trillion in gains generated by the Fed’s policies flowed to the top 10% and roughly two-thirds of the gains flowed to the top few percent.
Palladium at $1581. Wow!
https://www.kitco.com/charts/livepalladium.html