#Copper LME Call

[starseedfxofficial]

Oil Surges Amid No Ceasefire, Biden Plans Nuclear Expansion Brent Oil Bounces Back Amid Regional Tensions, but What Lies Beneath? Is Crude Oil Looking Like the Shoes You Ordered Online? You know, those shoes you ordered in your regular size only to realize they're either squeezing your toes or slipping off like a toddler in oversized boots? That’s what crude oil’s current rally feels like—uncertain and possibly deceptive. After Israel’s Defense Minister Katz firmly dismissed the possibility of a ceasefire with Hezbollah, oil prices showed an upward drift. Brent is hovering towards the top of its range at USD 71.55-72.36/bbl, but don't be fooled, traders. Market moves like this often contain more mystery than clarity. What's the Catalyst Here? Let’s break it down without the hype. While tensions escalating in the Middle East have injected a bullish undertone into Brent crude, there’s a hidden layer at play—market sentiment is often dictated by emotion, and boy, emotions are running high. This rally isn’t exactly a sign that the fundamentals are favoring oil prices in the long run. Traders are reacting, not strategizing. So, what should you do? Stay vigilant and treat this as the kind of hype move that could swing back when the market catches its breath. Gold - Not Exactly Your Comforting Blanket Right Now Speaking of things that aren’t exactly fitting well—gold, the so-called “safe haven”, isn’t giving us much comfort right now. Spot gold dipped below USD 2,600/oz, chilling near the bottom end of its parameter at USD 2,590.89-2,627.23/oz. It’s that uncomfortable drop you feel after realizing that the Dollar’s strength has continued, largely due to what some call the “Trump trade” — a phenomenon that’s been giving goldbugs something of a headache. What’s the Real Magic Here? But here’s where the real magic happens: While precious metals are sliding, this could be the perfect setup for contrarian traders. Think about it—when everyone else is panic selling, that’s often when you find the hidden gem opportunities. Start looking for signs of consolidation or divergence to know when the tide might be shifting. The thing about gold is it often seems to lose its luster just before it makes a surprising comeback. Base Metals Take a Dive – It’s Not All Doom and Gloom If you’re thinking about base metals, copper just gave us a big sigh of disappointment. Three-month LME copper slipped below USD 9,200/t. This was largely due to letdowns stemming from the NPC Standing Committee meeting—investors were expecting some magic tricks on fiscal stimulus, but they got a rabbit that’s barely hopping. But let’s think beyond the noise for a minute: whenever markets get disappointed, they tend to overreact. Are we on the brink of an opportunity to scoop up copper positions before a potential bounce? The firmer Dollar is keeping copper down, but watch the upcoming data. A change in market perception could be just around the corner. The Nuclear Dream – Biden Aims for a Triple Play Now, if you thought today’s trading was dull, here’s something that might just change the game. According to Bloomberg, the Biden administration is drafting plans for the US to triple nuclear power capacity by 2050. What does this mean for us traders? Diversification. A strategy to remember when the lights go out in the conventional power sector—consider positioning in uranium or renewable energies that could benefit from policy shifts. The nuclear dream may still be decades away, but early movers often get the best seats at the table. So, is it time to start monitoring those uranium mining stocks? OPEC Monthly Oil Market Report – The Waiting Game Lastly, OPEC's Monthly Oil Market Report is due today at 11:40 GMT. It’s almost like waiting for a magician to pull a trick you’ve seen before—are we going to hear about more production cuts, or is it the same old story about global demand "uncertainties"? Either way, you’re going to want to be nimble today. Have your charts open and watch the reaction at those key levels—you never know when the market might make a move that you could capitalize on. Elite Tactics Takeaway: The Key Lessons Here - Don’t get carried away by short-term news hype—markets love to overreact. Brent’s current move upwards could shift quickly, and this isn’t necessarily a buy signal just yet. - Gold slipping might just be setting up for a contrarian opportunity. Watch for consolidation signals and get ready to pounce. - Disappointment in copper after the NPC meeting may have created an opportunity. Stay sharp for signs of a bounce. - Biden’s nuclear plans hint at future diversification opportunities. It’s all about being an early mover. - OPEC’s report today might be more of the same, but volatility creates trading chances—stay ready. Remember, traders: in a world full of hype, always look for the underlying trends that other traders are missing. Keep your head cool, your strategies sharp, and your humor warmer than that cup of coffee sitting next to you. —————– Image Credits: Cover image at the top is AI-generated   Read the full article

[chemanalystdata]

Monel Prices Trend | Pricing | Database | Index | News | Chart

North America

In Q1 2024, Monel pricing dynamics in North America were analyzed beyond the usual top influences. The USA significantly impacted pricing trends, with notable fluctuations occurring in this region. Monel prices exhibited a mixed trend during the quarter, influenced by a balance between decreasing inventories and modest sectoral growth.

Supply remained stable, with no plant shutdowns reported. However, declining steel import permits and reduced steel inventories affected Monel's overall supply dynamics. Demand saw a moderate increase, particularly from the automotive and infrastructure sectors. US government initiatives to reduce pollution and promote electric vehicles led to higher Monel demand in the steel market.

Despite these trends, uncertainties and limited visibility led to buyer reluctance in making purchases. Year-over-year, Monel prices in Q1 2024 showed a slight increase compared to the same quarter last year and were also higher than in Q4 2023. Monel pricing dynamics in North America are influenced by various factors, including supply and demand dynamics, import effects, global market trends, and macroeconomic uncertainties.

Get Real Time Prices for Monel : https://www.chemanalyst.com/Pricing-data/monel-1364

Asia-Pacific

In Q1 2024, Monel pricing dynamics in the APAC region exhibited nuanced trends influenced by multiple factors beyond the conventional top influences. While the overall market situation remained stable, Japan experienced significant price fluctuations. Supply shortages in Japan resulted from automotive manufacturers' production suspensions, impacting steel output, a crucial component of Monel alloy. Labor shortages at Nippon Steel further strained the industry.

On the demand side, Japan saw a surge in Monel demand due to a collaboration between Kobe Steel and China Baowu Steel Group to produce lightweight aluminum panels for the growing electric vehicle industry. This joint venture prioritized Monel as a crucial material within the automotive industry, creating significant growth opportunities for manufacturers and suppliers specializing in nickel-copper alloys. Despite supply chain challenges, no plant shutdowns were reported during the quarter.

Europe

In Q1 2024, Monel pricing dynamics in Europe were influenced by factors beyond the usual top three. Germany experienced an overall increase in Monel prices. A spike in nickel prices in February had a substantial impact on the Monel supply chain, with the European Commodity Exchange (LME) seeing a 3.5% increase and the Asian SHFE seeing a 3.1% increase. Fluctuating mill outputs and rising domestic demand reduced Monel availability, attributed to new US sanctions against Russia. The consequent rise in nickel and freight costs hampered Monel production, causing a spike in prices on the German spot market.

Get Real Time Prices for Monel : https://www.chemanalyst.com/Pricing-data/monel-1364

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[stevecommodity]

Base Metals Closed Mostly with Gains after Digestion of Bears : Live reports by Steve Commodity.!!

FOR DAILY SURESHOT ADVISORY TIPS & DAILY MARKET REPORTS, JOIN STEVE COMMODITY TODAY.!!

LME and SHFE base metals closed mostly with gains last Friday after the bears have been almost digested. Copper: LME copper opened at $8,329/mt last Friday, once hitting the lowest and highest of $8,283.5/mt and $8,387/mt respectively. एमई और एसएचएफई बेस मेटल पिछले शुक्रवार को मंदडिय़ों के लगभग पचने के बाद ज्यादातर लाभ के साथ बंद हुए। कॉपर: एलएमई कॉपर पिछले शुक्रवार को $8,329/mt पर खुला, एक बार क्रमशः $8,283.5/mt और $8,387/mt के निम्नतम और उच्चतम स्तर पर पहुंच गया।

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[marketinvestor-mi]

COPPER MCX : Remember 665 - 655 are crucial support

COPPER MCX : Remember 665 – 655 are crucial support

COPPER MCX TIPS TODAY : Remember 665 – 655 are crucial support. Break and close below 655 will take at 628–615 !! Hurdle at 695…if crosses and stays above target 705-708.50 on will sell slowly…..will update u !!!

[billehrman]

Opposing View

Opposing View

Markets reacted violently last week after many Fed members moved their dot plots forward a few months regarding tapering and the eventual lift-off of the Federal funds rate. Interestingly, their forecasts now coincide with our own. We still expect the Fed to talk about tapering in the fall, begin the actual tapering next year, conclude it by year-end 2022, and start hiking rates by mid-2023. What is wrong with that?  

Who did not expect the Fed to begin to talk about tapering at this meeting?  The economy is strengthening, inflation is accelerating due to shortages and supply issues as production has not caught up with demand.  We agree with the Fed that over half of the increase is transitory, but it may take a year for these problems to abate so inflation will run elevated into 2022, but the rate of change will fall as the year progresses. The Fed’s message may have some unintended consequences: Biden’s $6 trillion infrastructure bill may be considered excessive and inflationary, and corporate executives may temper spending plans with the prospect of the Fed shifting policy sooner than expected. We do not believe that the Fed wants to slow the recovery as it wants employment to return to pre-pandemic levels with inflation hanging around 2%. They want corporations to expand much-needed capacity. The Fed did wish to regain the narrative around inflation, which was accomplished with this meeting and Powell’s follow-up conference call.

We believe that the Fed’s view on inflation will appear correct as the year progresses as supply issues ebb and year-over-year comparisons improve. In addition, the last thing that the Fed wants is to slow the economy and temper capital spending as it is woefully needed after underspending for over three years now. One by-product of the Fed’s new dot plot was a big move up in the dollar, contributing to the decline in commodity prices and interest rates. Industrial commodity prices are also under pressure by China’s decision to cut purchases and release reserves despite rising consumption. This strategy can only last so long and is bound to boomer rang on them as global economies begin to expand—their consumption of industrial commodities increases when LME inventories are at multi-year lows. We continue to favor copper as the shift to EV and going green will boost demand substantially while supply will stay constrained for at least five years. Spending in the U.S alone could exceed $330 billion over the next five years to support these endeavors. You need $6.50/pound for copper today to even consider a new grassroots project vs. $4.20/pound.

We have discussed for weeks now the countertrend moves from value/economically sensitive stocks to back to growth stocks. This shift accelerated last week after the Fed meeting. While this move may last a bit longer, we remain confident that the play over the next two years is investing in the economically sensitive areas where we expect companies to report surprisingly strong earnings, margins, cash flow, dividends, buybacks, and ROIC. In addition, no one seems to be factored into the equation any longer an infrastructure bill which we see closer to $1.2 trillion without any corporate tax increases this year. We did, however, increase our exposure to technology as we see interest rates contained longer due to the Fed actions last week.

We agree with David Tepper, who sees an upmarket ahead, and Paul Tudor Jones, who believes that commodity prices will increase over the next several years. By the way, Goldman Sachs is firmly in the bullish copper camp, too.

Let’s review what is happening regarding the coronavirus, monetary and fiscal policy, and recent data points.

Vaccinations globally are accelerating; roughly 35.7 million doses are being given per day. More than 2.47 billion doses have been administered across 180 countries, with over 313 million doses given so far in the U.S. at an average rate of 1.17 million doses per day. We remain confident that we will have herd immunity here before the end of the summer, before mid-fall in the Eurozone, and by mid-2022 elsewhere. There will be billion of doses available next year if we need booster shots, much like we get annual flu shots.

Fed Reserve officials brought forward their intent to taper bond purchases and eventually begin to hike rates in around six months, responding to the more substantial than anticipated increase in recent economic activity and inflation data. In updated projections which were released on Wednesday, 13 of the 18 officials indicated they expect to lift short-term rates by the end of 2023, up from seven officials scheduled in March. It is equally clear that the Fed wants to keep the economy humming, jobs to increase above pre-pandemic levels, and companies ramp up their capital spending to alleviate shortages and shorten the supply lines. While the Fed made a somewhat more hawkish stance this past week, the policy will remain overly accommodative for at least two more years, which is what counts.

While the President was abroad last week, a group of 11 moderate Democrats and Republicans brought forth a $974 infrastructure bill over five years without any corporate tax increases. If you include initial funding, the total package would be close to $1.2 trillion. We believe that a bill of this size focused entirely on traditional infrastructure is highly passable, as concerns rise about inflation and too much stimulus already in the system. We continue to believe that Democrats are worried about appearing too liberal as they run for office next year. That is good news.

Economic data both here and abroad has continued to improve as we get our arms around the coronavirus. Look at all the leading indicators hitting new highs, as is the production with inventory data hitting new lows. We must have listened to at least ten conference calls last week with the same message: we are sold out into next year; we will not be able to start rebuilding inventories till the end of 2022, and our margins/cash flow have never been more robust. And all of this is at the beginning of a global economic recovery so expect business conditions to continue to improve as we move forward.  Clearly, producer prices are rising as shortages and supply issues persist. Still, all of this will moderate as we move through 2021 and 2022, except in industrial commodities, where demand will outstrip supply for many years. We are less worried about the CPI as we see a surge in productivity offsetting most of the wage gains, which is, after all, 66% of the CPI.

Investment Conclusions

We are not surprised that the Fed finally began to talk about tapering as the economy and inflation are stronger than initially projected. Still, it is a mistake to think that the Fed will act precipitously and end the economic expansion. Their actions may extend the growth. Inflation is spiking, but you only reopen once, and we expect shortages and supply-side issues to ebb over time, so don’t overreact to the daily noise.

Since we are more confident about interest rates staying somewhat contained, we added to technology last week. At the same time, we have not abandoned our view that you need to focus on the production side of the economy as we have spent on capital formation for at least four years, which will lead to above-average capital spending over the next several years.

Remember to review all the facts; pause, reflect, and consider mindset shifts; look at your asset mix with risk controls; turn off cable new; do independent research and…

Invest Accordingly!

Bill Ehrman

Paix et Prosperite LLC

Paixetprosperite1@gmail.com

917-951-4139

[rannashris-blog]

Mcx data

Mcx tips

MCX Free Tips - Best Mcx Commodity Market of India Trading Tips Provider website for Free. Mcx Crude, Zinc, Copper, Lead, Nickel, Natural Gas, Gold, Silver Live Target Calls with Trends Today & Earnometer Support level. Daily LME Inventory Report, Live price Charts.

[customdesignnnn]

Reducing LME shadow stocks is further eroding the steel market

Reducing LME shadow stocks is further eroding the steel market

The exchange rate of aluminum, copper, lead, nickel, tin, and zinc has not been less than that since the last century. The visible output is accompanied by an important clamp on the LME shade material – metal that is stored outdoors but under a clear storage contract allows the exchange. What the LME calls stock losses reached just 256,000 tons at the end of February, down 88% over the 2 million…

[cialisbl]

Disappearance of LME shadow stocks adds to metals market turmoil

Disappearance of LME shadow stocks adds to metals market turmoil

Stock markets for aluminium, copper, lead, nickel, tin and zinc have not been this low since the last century. The visible cleanup has been accompanied by an even larger decline in the LME’s hidden inventory: metal stored off-market but under a storage contract that explicitly allows full-exchange delivery. What the LME calls out-of-warranty stocks totaled just 256,000 tonnes at the end of…

[goldsilverreports]

London Metal Exchange that Copper Prices will hit $12,000 per tonne

London Metal Exchange that Copper Prices will hit $12,000 per tonne

Traders are taking bets [buying calls] on the London Metal Exchange (LME) that copper prices will hit $12,000 per tonne by December. Continue reading

[starseedfxofficial]

Trump's Win Shakes Up Oil and Metals: What Traders Need to Know to Stay Ahead Trump's Win Shakes Up Oil and Metals: What Traders Need to Know to Stay Ahead Ever have that one friend who throws a wrench into perfectly organized plans just for the fun of it? Well, that friend is back, but this time he’s not just crashing your party, he’s set on re-writing the entire script of global markets. You guessed it, Donald Trump. As election results pour in, markets are in a frenzy, giving us yet another episode of “Trump Changes Everything”—and this one's a doozy. Brent crude took a nose-dive to USD 74.40/bbl as a stronger Dollar piled on the pressure. But let’s not ignore the underlying genius here—Trump's love for oil production could send US supply up. For those who know the secret handshake, there’s a trick here: ramping US production means increased supply and lower prices. Now might be a good time to practice the art of hedging those bets—just don’t tell the Saudis I said that. The Ninja Strategy That No One's Talking About Meanwhile, gold has decided to play it cool—by cooling off from USD 2,749.78/oz down to USD 2,701.42/oz. What’s behind it? The same greenback that’s keeping Brent down, my friends. With “Trump Trade 2.0,” the Dollar is flexing its muscles, reminding us all that it’s still the boss. And here’s the twist: savvy traders are viewing this as an opportunity. Ever heard of the “Trump Correction?” That’s right, folks are buying gold dips with one foot in the fiscal stimulus boat and the other in safe-haven territory—a spread play that could be a game changer. Just remember, it’s about staying nimble. Copper Conundrums & The Secret Weapon Now let’s talk copper—the “Doctor of Economics” seems to be self-medicating with some hefty losses. Trade wars under Trump 2.0 loom large, and 3M LME copper dances nervously around the USD 9,513.00-9,708.00 range. But guess what? The pros are eyeing the NPC Standing Committee's upcoming fiscal stimulus as the magic potion. Here’s a little-known secret: watch what China does, not just what it says. The fiscal policy maneuvers could make copper prices do a quick U-turn, and if you’re sharp, you’ll want to ride that wave before the masses catch on. Storms Brewing—Literally & Figuratively And just as Rafael graduated into hurricane status—congrats, Rafael!—we have China stepping up its lithium, cobalt, and nickel exploration efforts. Some analysts are calling it a defensive play for national resource security, but here’s the underground take: China is playing the long game. Think of it as a strategic move in the next iteration of the “Rare Metal Wars”—because, believe me, this will get Netflix-documentary-worthy someday. Traders who understand that Lithium isn’t just a Nirvana song might just find themselves ahead of the pack when EV markets go bananas again. PMIs and Precarious Predictions Meanwhile, European PMI figures are out—Spain, Italy, France, Germany, and the EU gave us a mixed bag of surprises, and the UK’s Construction PMI missed expectations at 54.3 (come on, just a little more mortar and bricks, lads!). But all eyes are on the BoE, with some economists predicting rate cuts coming soon. Here’s an insight for those truly in-the-know: watch the divergence. As the Bank of England trims rates, those who bet on gilts might be in for a nice ride, while the short-sellers prepare their ‘I-told-you-so’ dance. BoE, Don’t Go Breaking My Rates The big debate is if BoE will hit us with the rate cut this week—NIESR forecasts suggest it’s coming. Traders, here’s your play: once rate cuts start, positioning on currency pairs like GBP/USD becomes a high-stakes game of ‘chicken.’ If you’re holding GBP, you might want to think about some downside protection, while keeping an eye out for a potential bounce when the dust settles. Imagine catching the bottom here—that’s not just smart, that’s legendary. A Call to Action for Those Ready to Capitalize So, we have everything from oil turbulence to precious metal twists, hurricane upgrades, and the most unpredictable PMI shuffle ever. If you’re ready to apply these insights and strategies, join us over at StarseedFX. This is where the elite minds of Forex gather—where we don’t just report the news, we decode the secret language of the market. Are you going to just sit back and watch the show? Or will you take the insider’s seat, know the moves before they happen, and turn the tables on market trends? We’ve got the tools, the community, and the insights you need. Dive into exclusive resources, join live discussions, and master those ninja tactics that set the pros apart from the rest. The game is on—what are you waiting for? - Latest Economic Indicators and Forex News: Stay informed on market movements and groundbreaking concepts with exclusive, real-time updates. - Forex Education: Expand your knowledge with in-depth resources, advanced methodologies, and little-known strategies. - Community Membership: Join the StarseedFX community for expert analysis, daily alerts, live trading insights, insider tips, and elite tactics. - Free Trading Plan: Set goals, manage risks, and track progress with our detailed trading plan. Discover rare strategic advantages. - Free Trading Journal: Enhance performance and refine strategies with real metrics using advanced methods for progress tracking. - Smart Trading Tool: Optimize your trading with automated lot size calculations, insights, and order management. —————– Image Credits: Cover image at the top is AI-generated   Read the full article

[stevecommodity]

BASEMETALS REPORTS & MCX MARKET UPDATES ON MONDAY : BY STEVE COMMODITY.!!

FOR DAILY SURESHOT ADVISORY TIPS & DAILY MARKET REPORTS, JOIN STEVE COMMODITY TODAY.!!

LME and SHFE base metals closed mostly with gains on slumping US dollar index last Friday, which dipped 4% last week, hitting a new low in nearly three months. LME copper added 3.97%, aluminium rose 5.81%, lead gained 3.13%, and zinc jumped 5.19%. एलएमई और एसएचएफई बेस मेटल्स पिछले शुक्रवार को अमेरिकी डॉलर इंडेक्स में गिरावट के साथ ज्यादातर लाभ के साथ बंद हुए, जो पिछले हफ्ते 4% गिर गया, जो लगभग तीन महीनों में एक नया निचला स्तर था। एलएमई कॉपर में 3.97%, एल्युमीनियम में 5.81%, लेड में 3.13% और जिंक में 5.19% की तेजी आई।

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[andreagillmer]

Precious Metals Price Outlook: Buy Now

Source: Michael Ballanger for Streetwise Reports   07/05/2018

Sector expert Michael Ballanger details his forecast for precious metals markets in the second half of 2018.

Given the impressive reversal in gold last Monday, which appeared to occur during the Asian and European trading sessions as opposed to the Crimex pit session, it looks like the precious metals are adhering to the well-broadcasted seasonality trade that has been fraught with random, rather than dependable, trading results, especially in the last four years. 2014 and 2016 had poor second-half performances, while 2015 and 2017 were marginally positive. What is reliable is that gold purchases in July have a greater chance for a successful trading outcome than any other month of the year, assuming, of course, that you took profits when gold popped in one of the following five months.

Seasonality You can see from the chart posted below that in the months that follow July, five out of six have returns that exceed the monthly average, with the standout, September, being followed by corrective behavior in October. It has been postulated that accelerated and highly competitive buying by the Italian jewelry trade and Diwali in India accounts for strong September showings.

Oversold Conditions Conditions in the gold pit are identical to those encountered at major bottoms in the past three years, with RSI (relative strength index), MACD (moving average convergence divergence), and the histograms all in troughs that have led to strong and very tradeable rallies. This is where I take some additional positions on as “trades” and others as “put-aways.” If I can afford a $50,000 bite, $25,000 goes to a trade and $25,000 to put-aways, but the first tranche is designed for a scalp.

Gold Miners (Warning!) I have been staunch believer in the predictive nature of gold mining stocks since I first began tracking them in 1978. However, the usual Internet blogosphere is once again bountiful with opinionados that think they know more than they actually do. I have used the ratio of gold bullion to gold mining shares in the past and the GTSR (gold-to-silver ratio has usually been strongly reliable in calling the turns, but they are not always reliable as shown by the incredible “fake-out” that nailed us in 2015-2016.

In late summer 2015, I was buying the JNUG and NUGT calls for February and June expiry all based upon the growing outperformance in November of the miners compared to the metals. However, I stood by horrified in the very early New Year when they started to not just correct, but actually crash. By January 19, 2016, the HUI had broken 100 and the GDX:GOLD ratio was the lowest reading in over twenty-five years.

Gold versus Silver (GTSR) I am currently short the GTSR, and early last week came very close to lifting the “short gold” leg of that very successful paired trade put on in April at 82.75. I tried to lift it by buying back the GLD shorts, but I was bidding too far under the market ($117.20). The best it could do was $118 on Thursday, only to sag to $117.40 on Monday while I was on the boat in the Massassauga Provincial Park with only intermittent Internet signals. I fear that I may have to simply ride out the paired trade to my 65 target, but that will take a major assault on $21.15 silver and $1,375 gold. If I simply lift the gold short at $1,250 (GLD $118.00), I only need $19.35 silver (SLV $18.10) to accomplish my objective.

Strategy Before I embark on some dogmatic diatribe on the precious metals outlook and who and what are responsible for the unyielding assault on prices since last April, look no further than the base metals, where copper and zinc have once again entered bear market territories. It was only four months ago that I was debating a few of the clowns in the CEO.CA forum about “The Zinc Trade” and why at $1.66/lb. supply would magically appear out of nowhere forcing the LME (London Metal Exchange) inventories upward and negatively affecting price. All they could spin out was the same bullish case based on supply disruptions that I was writing about in 2011, when Tinka Resources Ltd. (TK:TSX.V; TLD:FSE; TKRFF:OTCPK) discovered the Ayawilca zinc deposit. As I have always maintained, when the reasons for owning a stock show up in the bullboards or chatrooms of the Internet cesspool, it is time to go the other way.

Dr. Copper has really taken it on the chin lately, and you can lay the blame squarely in the lap of the U.S. president, who is determined to penalize countries that have executed “The Art of the Deal” better than any previous American politician could ever have imagined. While the U.S. has been running around the globe for the last twenty years playing schoolyard bully, invading sovereign nations without provocation and forcing millions of Middle Eastern refugees from the region, China and Russia have been solidifying allegiances by way of good old-fashioned “business deals.” Those deals are now no different than military alliances, and the Chinese have become masters at dangling gilded carrots in front of starving and destitute mules to win respect and ensure servitude. Adherence to the generational objectives of Chinese negotiators has become a fearsome fly in the ointment of Western business leaders. Whereas the corporate leaders in the U.S. and Europe must please only their shareholders, whose idea of a long-range plan is the closing bell of the NYSE, the CEOs of Chinese companies need only look to the Party for approval and tenure. Long-range corporate objectives remain generational for China, and that is why a severe market correction is not only possible, it is probable, with the debilitating effects being painfully more impactful upon Western markets and corporations than it would (and will be) for their Chinese counterparts.

The strategy for my personal portfolio has three basic objectives, and they are as follows:

1. Focus on preservation of capital 2. Focus on preservation of capital 3. Refer to points 1 and 2.

That is most certainly an old and very corny joke but I simply cannot overemphasize the need for prudence and caution in all areas of investment selection. Markets are no longer a battle between humans and the dual enemies of fear and greed. It is no longer about being the strongest and the smartest and the fastest in terms of intellect and perseverance. Machines can do all of that, and way better than we can. To which you counter: “But machines cannot predict human emotion because they do not experience it.” To which I reply: “They see the emotional response to a price-changing event in nano-seconds and then move with such high-frequency velocity that they are able to front-run the human decision and skip to the front of the analytical queue without the silliness of any actual analysis.”

To that, I say: “Hand your money over to the quant-geeks and let the machines battle it out.” Think about it. To allow a HFT (high-frequency trading algobot the ability to analyze your order to an exchange and execute before you is essentially stealing your proprietary research. It is corporate and intellectual thievery of the highest order, and it is what is ruining markets and driving thousands of brilliant analysts out of the business.

Here is the head of the nail meeting the claw of the hammer: If we don’t extract the dominance of technology from the investment industry, idealists will no longer seek to use financial markets as conduits for the life blood of innovation. The liquidity event that is the sensible and infinitely logical reward of the retail speculator is being denied to them by interventions in markets that used to be driven by an absolutely wonderful combination of very healthy fear and greed. In the days before the algobots and central-banking-edict-driven markets, there was a palpable excitement in the air as the only “Fear” in the room was that you would miss your fill on 100,000 shares of Foofoo Mines, which was charging on drill hole speculation. Not to be outdone, Fear’s nose-picking twin brother was inciting the investment crowd to riotous deportment, as “Greed” poured gallon after gallon of avaricious fuel on the tinderbox of raging human desire for recognition and advancement, and took away your 100,000 shares of Foofoo.

Alas, the outcome was always the same: Some won; some lost; but copious amounts of money were raised and commerce prevailed. Through the mechanism of the venture capital markets in Canada and Australia, the wealth created through this process created entire industries in remote regions, enriching local indigenous peoples completely removed from the mainstream of public interest and commentary. The explorationists that I have known and admired in my career have always said that the most enjoyment they ever experienced was before they made the discovery and before they had acquired wealth. Most refer to wealth within the context of family and friends, and need not refer to a net worth statement as it was the direct result of capital markets functioning in the manner in which they were ideated.

The problem that remains today is that no rational human will invest in a private company if he knows that the exit mechanism is flawed. In medical marijauna deals, there is a ton of liquidity and everything is functioning. In mining, it is absent. That, in itself, is bullish.

In sum, the time to be buying Gold and Gold Miners is right now. Sentiment, which you will recall was my primary driver for going “all-in” in 2015, is now fully in the category of “brutal,” and as you all know, the equal and opposite reaction is always to “buy bruta” and “sell ecstatic,” or as many of my penmanship brethren would say, “You want to be sellin’ when they’re yellin’ and buyin’ when they’re cryin’. . .”

Happy Fourth to all of my numerous and wonderful American friends. The six years I lived in the Midwest, within the Heartland of the U.S.A., carry the second-best memories of my life, the first being finding my keys and my wallet two days ago in the boat with zero need from any one else. God Bless America.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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 Streetwise Interviews page.

Disclosure: 1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 2) This 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. 3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer: 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.

from The Gold Report – Streetwise Exclusive Articles Full Text https://ift.tt/2IXrFfl

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[billehrman]

Opposing View

Opposing View

Markets reacted violently last week after many Fed members moved their dot plots forward a few months regarding tapering and the eventual lift-off of the Federal funds rate. Interestingly, their forecasts now coincide with our own. We still expect the Fed to talk about tapering in the fall, begin the actual tapering next year, conclude it by year-end 2022, and start hiking rates by mid-2023. What is wrong with that?  

Who did not expect the Fed to begin to talk about tapering at this meeting?  The economy is strengthening, inflation is accelerating due to shortages and supply issues as production has not caught up with demand.  We agree with the Fed that over half of the increase is transitory, but it may take a year for these problems to abate so inflation will run elevated into 2022, but the rate of change will fall as the year progresses. The Fed’s message may have some unintended consequences: Biden’s $6 trillion infrastructure bill may be considered excessive and inflationary, and corporate executives may temper spending plans with the prospect of the Fed shifting policy sooner than expected. We do not believe that the Fed wants to slow the recovery as it wants employment to return to pre-pandemic levels with inflation hanging around 2%. They want corporations to expand much-needed capacity. The Fed did wish to regain the narrative around inflation, which was accomplished with this meeting and Powell’s follow-up conference call.

We believe that the Fed’s view on inflation will appear correct as the year progresses as supply issues ebb and year-over-year comparisons improve. In addition, the last thing that the Fed wants is to slow the economy and temper capital spending as it is woefully needed after underspending for over three years now. One by-product of the Fed’s new dot plot was a big move up in the dollar, contributing to the decline in commodity prices and interest rates. Industrial commodity prices are also under pressure by China’s decision to cut purchases and release reserves despite rising consumption. This strategy can only last so long and is bound to boomer rang on them as global economies begin to expand—their consumption of industrial commodities increases when LME inventories are at multi-year lows. We continue to favor copper as the shift to EV and going green will boost demand substantially while supply will stay constrained for at least five years. Spending in the U.S alone could exceed $330 billion over the next five years to support these endeavors. You need $6.50/pound for copper today to even consider a new grassroots project vs. $4.20/pound.

We have discussed for weeks now the countertrend moves from value/economically sensitive stocks to back to growth stocks. This shift accelerated last week after the Fed meeting. While this move may last a bit longer, we remain confident that the play over the next two years is investing in the economically sensitive areas where we expect companies to report surprisingly strong earnings, margins, cash flow, dividends, buybacks, and ROIC. In addition, no one seems to be factored into the equation any longer an infrastructure bill which we see closer to $1.2 trillion without any corporate tax increases this year. We did, however, increase our exposure to technology as we see interest rates contained longer due to the Fed actions last week.

We agree with David Tepper, who sees an upmarket ahead, and Paul Tudor Jones, who believes that commodity prices will increase over the next several years. By the way, Goldman Sachs is firmly in the bullish copper camp, too.

Let’s review what is happening regarding the coronavirus, monetary and fiscal policy, and recent data points.

Vaccinations globally are accelerating; roughly 35.7 million doses are being given per day. More than 2.47 billion doses have been administered across 180 countries, with over 313 million doses given so far in the U.S. at an average rate of 1.17 million doses per day. We remain confident that we will have herd immunity here before the end of the summer, before mid-fall in the Eurozone, and by mid-2022 elsewhere. There will be billion of doses available next year if we need booster shots, much like we get annual flu shots.

Fed Reserve officials brought forward their intent to taper bond purchases and eventually begin to hike rates in around six months, responding to the more substantial than anticipated increase in recent economic activity and inflation data. In updated projections which were released on Wednesday, 13 of the 18 officials indicated they expect to lift short-term rates by the end of 2023, up from seven officials scheduled in March. It is equally clear that the Fed wants to keep the economy humming, jobs to increase above pre-pandemic levels, and companies ramp up their capital spending to alleviate shortages and shorten the supply lines. While the Fed made a somewhat more hawkish stance this past week, the policy will remain overly accommodative for at least two more years, which is what counts.

While the President was abroad last week, a group of 11 moderate Democrats and Republicans brought forth a $974 infrastructure bill over five years without any corporate tax increases. If you include initial funding, the total package would be close to $1.2 trillion. We believe that a bill of this size focused entirely on traditional infrastructure is highly passable, as concerns rise about inflation and too much stimulus already in the system. We continue to believe that Democrats are worried about appearing too liberal as they run for office next year. That is good news.

Economic data both here and abroad has continued to improve as we get our arms around the coronavirus. Look at all the leading indicators hitting new highs, as is the production with inventory data hitting new lows. We must have listened to at least ten conference calls last week with the same message: we are sold out into next year; we will not be able to start rebuilding inventories till the end of 2022, and our margins/cash flow have never been more robust. And all of this is at the beginning of a global economic recovery so expect business conditions to continue to improve as we move forward.  Clearly, producer prices are rising as shortages and supply issues persist. Still, all of this will moderate as we move through 2021 and 2022, except in industrial commodities, where demand will outstrip supply for many years. We are less worried about the CPI as we see a surge in productivity offsetting most of the wage gains, which is, after all, 66% of the CPI.

Investment Conclusions

We are not surprised that the Fed finally began to talk about tapering as the economy and inflation are stronger than initially projected. Still, it is a mistake to think that the Fed will act precipitously and end the economic expansion. Their actions may extend the growth. Inflation is spiking, but you only reopen once, and we expect shortages and supply-side issues to ebb over time, so don’t overreact to the daily noise.

Since we are more confident about interest rates staying somewhat contained, we added to technology last week. At the same time, we have not abandoned our view that you need to focus on the production side of the economy as we have spent on capital formation for at least four years, which will lead to above-average capital spending over the next several years.

Remember to review all the facts; pause, reflect, and consider mindset shifts; look at your asset mix with risk controls; turn off cable new; do independent research and…

Invest Accordingly!

Bill Ehrman

Paix et Prosperite LLC

Paixetprosperite1@gmail.com

917-951-4139

[goldcoins0]

Precious Metals Price Outlook: Buy Now

Source: Michael Ballanger for Streetwise Reports   07/05/2018

Sector expert Michael Ballanger details his forecast for precious metals markets in the second half of 2018.

Given the impressive reversal in gold last Monday, which appeared to occur during the Asian and European trading sessions as opposed to the Crimex pit session, it looks like the precious metals are adhering to the well-broadcasted seasonality trade that has been fraught with random, rather than dependable, trading results, especially in the last four years. 2014 and 2016 had poor second-half performances, while 2015 and 2017 were marginally positive. What is reliable is that gold purchases in July have a greater chance for a successful trading outcome than any other month of the year, assuming, of course, that you took profits when gold popped in one of the following five months.

Seasonality You can see from the chart posted below that in the months that follow July, five out of six have returns that exceed the monthly average, with the standout, September, being followed by corrective behavior in October. It has been postulated that accelerated and highly competitive buying by the Italian jewelry trade and Diwali in India accounts for strong September showings.

Oversold Conditions Conditions in the gold pit are identical to those encountered at major bottoms in the past three years, with RSI (relative strength index), MACD (moving average convergence divergence), and the histograms all in troughs that have led to strong and very tradeable rallies. This is where I take some additional positions on as "trades" and others as "put-aways." If I can afford a $50,000 bite, $25,000 goes to a trade and $25,000 to put-aways, but the first tranche is designed for a scalp.

Gold Miners (Warning!) I have been staunch believer in the predictive nature of gold mining stocks since I first began tracking them in 1978. However, the usual Internet blogosphere is once again bountiful with opinionados that think they know more than they actually do. I have used the ratio of gold bullion to gold mining shares in the past and the GTSR (gold-to-silver ratio has usually been strongly reliable in calling the turns, but they are not always reliable as shown by the incredible "fake-out" that nailed us in 2015-2016.

In late summer 2015, I was buying the JNUG and NUGT calls for February and June expiry all based upon the growing outperformance in November of the miners compared to the metals. However, I stood by horrified in the very early New Year when they started to not just correct, but actually crash. By January 19, 2016, the HUI had broken 100 and the GDX:GOLD ratio was the lowest reading in over twenty-five years.

Gold versus Silver (GTSR) I am currently short the GTSR, and early last week came very close to lifting the "short gold" leg of that very successful paired trade put on in April at 82.75. I tried to lift it by buying back the GLD shorts, but I was bidding too far under the market ($117.20). The best it could do was $118 on Thursday, only to sag to $117.40 on Monday while I was on the boat in the Massassauga Provincial Park with only intermittent Internet signals. I fear that I may have to simply ride out the paired trade to my 65 target, but that will take a major assault on $21.15 silver and $1,375 gold. If I simply lift the gold short at $1,250 (GLD $118.00), I only need $19.35 silver (SLV $18.10) to accomplish my objective.

Strategy Before I embark on some dogmatic diatribe on the precious metals outlook and who and what are responsible for the unyielding assault on prices since last April, look no further than the base metals, where copper and zinc have once again entered bear market territories. It was only four months ago that I was debating a few of the clowns in the CEO.CA forum about "The Zinc Trade" and why at $1.66/lb. supply would magically appear out of nowhere forcing the LME (London Metal Exchange) inventories upward and negatively affecting price. All they could spin out was the same bullish case based on supply disruptions that I was writing about in 2011, when Tinka Resources Ltd. (TK:TSX.V; TLD:FSE; TKRFF:OTCPK) discovered the Ayawilca zinc deposit. As I have always maintained, when the reasons for owning a stock show up in the bullboards or chatrooms of the Internet cesspool, it is time to go the other way.

Dr. Copper has really taken it on the chin lately, and you can lay the blame squarely in the lap of the U.S. president, who is determined to penalize countries that have executed "The Art of the Deal" better than any previous American politician could ever have imagined. While the U.S. has been running around the globe for the last twenty years playing schoolyard bully, invading sovereign nations without provocation and forcing millions of Middle Eastern refugees from the region, China and Russia have been solidifying allegiances by way of good old-fashioned "business deals." Those deals are now no different than military alliances, and the Chinese have become masters at dangling gilded carrots in front of starving and destitute mules to win respect and ensure servitude. Adherence to the generational objectives of Chinese negotiators has become a fearsome fly in the ointment of Western business leaders. Whereas the corporate leaders in the U.S. and Europe must please only their shareholders, whose idea of a long-range plan is the closing bell of the NYSE, the CEOs of Chinese companies need only look to the Party for approval and tenure. Long-range corporate objectives remain generational for China, and that is why a severe market correction is not only possible, it is probable, with the debilitating effects being painfully more impactful upon Western markets and corporations than it would (and will be) for their Chinese counterparts.

The strategy for my personal portfolio has three basic objectives, and they are as follows:

1. Focus on preservation of capital 2. Focus on preservation of capital 3. Refer to points 1 and 2.

That is most certainly an old and very corny joke but I simply cannot overemphasize the need for prudence and caution in all areas of investment selection. Markets are no longer a battle between humans and the dual enemies of fear and greed. It is no longer about being the strongest and the smartest and the fastest in terms of intellect and perseverance. Machines can do all of that, and way better than we can. To which you counter: "But machines cannot predict human emotion because they do not experience it." To which I reply: "They see the emotional response to a price-changing event in nano-seconds and then move with such high-frequency velocity that they are able to front-run the human decision and skip to the front of the analytical queue without the silliness of any actual analysis."

To that, I say: "Hand your money over to the quant-geeks and let the machines battle it out." Think about it. To allow a HFT (high-frequency trading algobot the ability to analyze your order to an exchange and execute before you is essentially stealing your proprietary research. It is corporate and intellectual thievery of the highest order, and it is what is ruining markets and driving thousands of brilliant analysts out of the business.

Here is the head of the nail meeting the claw of the hammer: If we don't extract the dominance of technology from the investment industry, idealists will no longer seek to use financial markets as conduits for the life blood of innovation. The liquidity event that is the sensible and infinitely logical reward of the retail speculator is being denied to them by interventions in markets that used to be driven by an absolutely wonderful combination of very healthy fear and greed. In the days before the algobots and central-banking-edict-driven markets, there was a palpable excitement in the air as the only "Fear" in the room was that you would miss your fill on 100,000 shares of Foofoo Mines, which was charging on drill hole speculation. Not to be outdone, Fear's nose-picking twin brother was inciting the investment crowd to riotous deportment, as "Greed" poured gallon after gallon of avaricious fuel on the tinderbox of raging human desire for recognition and advancement, and took away your 100,000 shares of Foofoo.

Alas, the outcome was always the same: Some won; some lost; but copious amounts of money were raised and commerce prevailed. Through the mechanism of the venture capital markets in Canada and Australia, the wealth created through this process created entire industries in remote regions, enriching local indigenous peoples completely removed from the mainstream of public interest and commentary. The explorationists that I have known and admired in my career have always said that the most enjoyment they ever experienced was before they made the discovery and before they had acquired wealth. Most refer to wealth within the context of family and friends, and need not refer to a net worth statement as it was the direct result of capital markets functioning in the manner in which they were ideated.

The problem that remains today is that no rational human will invest in a private company if he knows that the exit mechanism is flawed. In medical marijauna deals, there is a ton of liquidity and everything is functioning. In mining, it is absent. That, in itself, is bullish.

In sum, the time to be buying Gold and Gold Miners is right now. Sentiment, which you will recall was my primary driver for going "all-in" in 2015, is now fully in the category of "brutal," and as you all know, the equal and opposite reaction is always to "buy bruta" and "sell ecstatic," or as many of my penmanship brethren would say, "You want to be sellin' when they're yellin' and buyin' when they're cryin'. . ."

Happy Fourth to all of my numerous and wonderful American friends. The six years I lived in the Midwest, within the Heartland of the U.S.A., carry the second-best memories of my life, the first being finding my keys and my wallet two days ago in the boat with zero need from any one else. God Bless America.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger's adherence to the concept of "Hard Assets" allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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 Streetwise Interviews page.

Disclosure: 1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 2) This 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. 3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer: 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.

from https://www.streetwisereports.com/article/2018/07/05/precious-metals-price-outlook-buy-now.html

[goldsilverreports]

MCX Zinc Intraday Trading Zone ₹ 175—₹ 182 Levels | Neal Bhai Reports

MCX Zinc Intraday Trading Zone ₹ 175—₹ 182 Levels | Neal Bhai Reports

Gold Silver Reports (GSR) – Meanwhile LME zinc inventories rose by 17,200 tonnes to 250,400 on Friday, LME data showed. While Zinc social inventory in Shanghai, Guangdong, and Tianjin fell some 2,700 mt from last Friday to 97,300 mt as of Monday July 23.     (more…)

[click2watch]

London Metal Exchange Backs Plan to Track Physical Metals With Blockchain

The London Metal Exchange (LME), which boasts the world’s largest market for metal derivatives, is said to be supporting an initiative to track physical metals using blockchain.

A Financial Times report on Tuesday citing “people familiar with the effort” said that the LME has backed a consortium initiative led by commodity trading firm Mercuria, to build a blockchain-based system to track the trade of physical metals such as copper, zinc and aluminium.

The initiative, dubbed “Forcefield,” is also supported by banks such as Macquarie and ING, according to the report.

The blockchain-based system aims to help buyers in the industry track the source of their metal, as well as help metal traders prove ownership of their stock.

LME chief executive Matt Chamberlain reportedly did not comment on any involvement in the initiative by the exchange specifically, but told the FT:

“[In a blockchain-based system] you know where your metal is, you have proof of your metal, but nobody can see what your metal is and where your metal is.”

If the industry can unite to deliver such a system, it would be “a huge win for the metals trading community,” he added.

The LME has 500 “approved” warehouses in 34 locations across the world, where it stores metals on behalf of holders, according to information on its website.

However, it has “no approved” warehouses in China, the world’s largest consumer of metals, according to the FT report, which makes it difficult for traders and consumers to be sure of metals’ provenance, as well as the general state of supply and demand.

Back in 2016, the LME launched an electronic system called LMEshield for tracking material stored in China, though it reportedly hasn’t seen much success.

Metal bars image via Shutterstock

This news post is collected from CoinDesk

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