Here are some possible catalysts outside of Fed policy and Covid
Joel Elconin, Co-Host of the Benzinga Pre-Market Prep Show and editor of PreMarket Prep joins us to look outside of the Fed and Covid news to other potential catalysts for markets. I know we are all getting tired of talking about the Fed (especially when there has been no change of policy for over a year) and Covid. The other theme that keeps popping up is the rotation trade and leaders leading the market.
Thanks David. Yes, Joel is always entertaining and informative.
Billionaire John Paulson Knocks Bitcoin, Touts Gold
Gerelyn Terzo – Monday August 30, 2021
In an interview with Bloomberg, Paulson, who reached billionaire status on the heels of his doom-and-gloom call on the subprime housing market in 2007, didn’t mince words when he said that he was “not a believer in cryptocurrencies.” He went on to call the cryptocurrency market a “bubble,” one whose value will eventually go to zero.
Even though bitcoin’s supply is capped at 21 million coins ever to be mined, Paulson, whose firm Paulson & Co was shuttered last year and converted into a family office, took a shot anyway, calling the broader cryptocurrency market a “limited supply of nothing.” He turned to the argument that as long as demand outpaces the supply, the price will rise, but when demand falters, the price will fall with it.
“There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount,” said Paulson to Bloomberg’s David Rubenstein.
For all his venom toward bitcoin, Paulson is equally bullish on gold. He has been for many years. For example, his fund flocked to the precious metal in the wake of the financial crisis. He has been patient with the precious metal, even suffering gold-fueled declines before deciding to pull the plug on running a hedge fund and instead focus on managing his own wealth.”
“Gold investors got the last word in 2020 when the coronavirus triggered the fear lever, and now Paulson believes the stars are once again beginning to align for the precious metal. While inflation has started to rear its head already, Paulson believes it is just getting started. He believes that inflation will climb higher than the estimates largely due to a rising money supply, and gold is poised to benefit.”
https://www.kitco.com/news/2021-08-30/Billionaire-John-Paulson-knocks-bitcoin-touts-gold.html
Crypto Consolidation: FTX.US Expands Into Bitcoin Derivatives With Key Acquisition
Gerelyn Terzo – Tuesday August 31, 2021
“The majority of global cryptocurrency volume trades through derivatives. There is deep demand from US-based institutional and retail clients to have direct access to regulated crypto futures and options markets.”
August is Oil’s Worst Month In 10 as Prices Drop 7%
Investing.com – Aug 31, 2021
“Oil ended August on a down note, falling 7% for its worst month in 10, as demand concerns reared their head again after Hurricane Ida forced the closure of U.S. refineries.”
“Expectations that a Wednesday meeting of oil producing nations in the OPEC+ alliance would go ahead with a plan to raise output in September also weighed on prices in Tuesday’s session of oil — although the production increase was unlikely to be as much as the Biden administration expected, in order to dampen inflation.”
Oil Falls As U.S. Refineries Shut; Washington Pushes OPEC To Pump More
Reuters – August 31, 2021
U.S. West Texas Intermediate (WTI) crude futures were down 53 cents, or 0.8%, at $68.68.
“Both benchmarks were on track for their first monthly loss since March but were still not far from their July highs, when Brent rose to its strongest since 2018 and U.S. crude to its highest since 2014.”
“Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused “catastrophic” damage to Louisiana’s grid.”
“Prices were pressured by concerns that power outages and flooding in Louisiana after Hurricane Ida will cut crude demand from refineries.”
Floods, Outages Stall Energy Firms’ Restart Efforts After Ida
Reuters – August 31, 2021
Hurricane Ida Hurts Oil Demand Ahead Of OPEC+ Meeting
By Josh Owens – Aug 31, 2021
https://oilprice.com/Energy/Energy-General/Hurricane-Ida-Hurts-Oil-Demand-Ahead-Of-OPEC-Meeting.html
Good call by Josef Schachter.
Nickel Price Soars To Record In Shanghai On Strong Demand, Low Stocks
Mining.com – August 31, 2021
“The most-traded October nickel contract on the Shanghai Futures Exchange hit a record 149,870 yuan ($23,197) a tonne, up 21% year-to-date. Three-month nickel on the London Metal Exchange also touched its highest since July 30 at $19,810 a tonne, having risen 17% so far this year.”
https://www.mining.com/nickel-price-soars-to-record-in-shanghai-on-strong-demand-low-stocks/
Added 4K shares — NKOSF
Marty – Interesting bottom fish in Labrador Gold.
It has had a nice corrective move and does look rather ripe for the picking here. May your trade be prosperous!
Today I sold my (HODL) Cypherpunk for small gain, and (BMET) BeMetals for a small loss, and rolled those funds into buying more (IPT) Impact Silver, (LGD) Liberty Gold, and (NSR) Nomad Royalty.
You didn’t roll into USAU? Took my advice and avoided it? I think they are getting ready for a big dilution. Reminds me of NVO, another mutt I cautioned people about on this site some time ago. You characterizing me as a whiner with nothing to contribute is a little excessive. You seem to take everything personally and it’s just not necessary, Ex.
Terry, once again, YOU are the one stirring up issues and complaining, and this post is what was not necessary.
You come on bashing Novo as a scam and insulting Quinton a number of times without providing any rational train of thought (other than your daughter was doing archaeology work in the Pilbara and you thought they’d find a dinosaur bone and shut them down…).
Literally the company has now gone into production, something most companies will never achieve, and something you didn’t believe they’d do. Then the company has a massive land package with proven gold nuggets all over the place, and has utilized ore sorting equipment that has been successfully tested at Comet Well and Purdy’s Reward, and when presented with these glaring truths, you ignore all the data to instead continue bashing which is not a contribution. Raising a red flag or asking for clarity on a company would be one thing, and would be helpful. A dissenting opinion on a company is fine, when well reasoned, but that isn’t what you do.
Then you’ve now posted about a half dozen times bashing US Gold when you clearly understand almost nothing about the company and without addressing any of the info I responded back to you on (patiently and consistently) on their 4 projects, the fact that they are moving into a Pre-Feasibility Study for development on CK Gold, or regarding CEO George Bee’s pedigree and background with Barrick, Anglo American, or Rio Tinto (not likely to get into a dog), nor did you respond back to any of the actual facts or info brought up when we’ve interviewed the company on here 3 times in great detail. Again, you thinking they are getting ready for a big dilution isn’t a fact or really that helpful. Obviously they are still pre-production at this point and exploring and drilling on 3 other projects and doing metalurgical studies and working their economic study for their flagship CK Gold, so they’ll need to raise down the road, like any company would.
Again, if you did some real due diligence and offered any value other than calling companies a “mutt” and then had a difference of opinion that would be fine, but that isn’t how you roll now is it Terry? We’ve seen guys like you come on and troll companies over and over with some weird axe to grind because you read a Taylor Dart article that confirmed your bias.
John Feneck, our guest on the show on Friday and the weekend show recommended US Gold as one of his top picks after doing dozens of hours of due diligence, doing a site visit to CK Gold, and after repeated discussions with management.
>> Have you ever talked to management at Novo or US Gold Terry? Have you even gone through all their news and corporate presentation? If you had a question you wanted clarified with management or had a legitimate concern, then we’d have been happy to ask them, but you don’t really want that… you just want to crap all over certain companies because that’s what makes you tick.
Then lately you absolutely have been whining that you don’t like the show topics, don’t want to hear about the Jackson Hole speech on tapering, or hear about fed policy, or what effect taking away the quantitative easing would mean to the markets…. claiming you were “Fed up” and instead wanted to talk about how good a Maple Leaf looks in your hand. Knock yourself out, but that wouldn’t be much of a show topic and I’m glad you aren’t lining up the guests and show content.
If you can’t stand listening to our segments, and don’t like the show topics, and don’t like the companies that our guests come on and discuss, then you could:
(A) just keep the negativity to yourself
(B) not listen (as clearly you don’t to the company interviews you like to bash) or
(C) pick a different website to troll. Pretty simple concept.
Another essay, you really must be hurting. I made a good call on NVO and expect the same from USAU.
Anyway thanks, I’m making money some off your stuff.
I bought a lot of shares of Orea Mining, They have a property in French Guiana called Montagne D’OR, which literally translates into a Mountain of Gold. They have won their court battles with the French Government not once but twice. Nordgold plc joint ventured with OREA and now they own 55.1% of this deposit which has shown drill results of 5 million ounces of gold mostly open pit mining, but I believe there are more, only the drill bit can decide.
But what is exciting is they are a takeover candidate, Nordgold operates 9 mines and they are worldwide but mostly in Africa. Nordgold is listed on The London Exchange, with 7800 employees and one million ounces of gold production per year, they will launch a takeover of Orea Mining with their 44.1% share of The Gold Mountain. The French Government has 3 weeks out of two months left to file a final appeal. Orea Mining must be paid 10,000 Euros per day, plus all court costs, by The French Government for every day their appeal is delayed. OREA Mining- TSX OREA CDN 15 cents!
DT – Thanks for Orea D.D.
Supply Chain Woes
Aug. 30, 2021 – Lyn Alden Schwartzer
“Supply chain problems are acute, but also a part of a more structural peak globalization issue.”
“Inflation is from physical constraints as well as money supply growth.”
“The Baltic Dry Index, which measures the price of moving raw materials globally, has more than tripled recently”
“Many manufactured goods are very complex, and draw upon supply chains around the world. Just a handful of missing parts out of a thousand can delay a finished product.”
“But it’s not just manufactured goods. Food and gasoline prices are elevated, house prices have surged, and rents are starting to shift upwards to catch up with housing prices:”
Nice move in CWEB almost back to your buy price, while I bought in the 19’s and out with a nice quick profit. Gotta thank you for mentioning that one. My brand of due diligence…keep eyes and ears open and piggyback off the other guy’s hard work
Great interview as always. I was entertained by a comment by Joel saying something like “well controlled markets”.