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Energy & Commodities

The Shiniest Metal of Them All

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Posted by Sean Brodrick - MoneyandMarkets

on Monday, 23 October 2017 07:02

If you like precious metals, you probably like gold and silver. Let me tell you about a shiny metal that is leaving both gold and silver in the dust.

That metal is palladium – and it’s up 42.6% since the start of the year. And up 73% since the start of the new bull market in metals at the beginning of 2016. That runs rings around gold’s performance. The yellow metal is up “only” 12.5% this year and 20.5% since the start of the new bull market.

So, yeah. Palladium is the hot ticket among the shinier, non-energy metals.

Side note: I’ve told you about the energy metals before. They’re in a supercycle, and looking good. That’s part of the big megatrend of the world’s move to electric cars.

But the sun doesn’t rise and set on electric cars. So, let’s get back to the shiny stuff. The metals that can protect you from central bank money-printing.

Here is a chart of these metals, as tracked by the ETFs that hold the physical metal, since the start of the new bull market.

101817 1301 ThisMetalJu1

Wow! Just look at palladium. Why is it so hot? And why is platinum – which is much rarer than the other metals shown here – doing so poorly?

Demand Shifts into High Gear{jcomments on}

The reason is that both palladium and platinum are also industrial metals. And even there, the metals’ fortunes are zooming in different directions.

Palladium is used in catalytic converters for gasoline engines. And global car sales are shifting into high gear. World vehicle sales jumped 4.1% in August. In China, the world’s biggest car market, sales are up a whopping 8% year-over-year. Zoom-zoom!

That is revving up demand for palladium.

But what about platinum? Well, platinum is mainly used for pollution controls in diesel engines. Volkswagen is the world’s biggest car maker. Remember how its diesel cars were supposed to be so clean?

Maybe not so much. Volkswagen was caught red-handed cheating on its diesel emissions tests. The company is now liable for billions of dollars in fines.

But it’s not just Volkswagen. According to a recent study, EVERY diesel car company is emitting more pollution than tests show.

This is hurting the popularity of diesel-powered vehicles. Especially in Europe. Europe’s diesel-engine market share may fall by half by 2025. And that will remove 300,000 to 600,000 ounces of platinum demand in the next decade, according to Citigroup.

Meanwhile, the supply/demand picture in palladium is very tight. Citigroup says mine supply of palladium could fall short of demand by more than a million ounces next year.

Just recently, palladium climbed above $1,000 an ounce for the first time since 2001. Its increase is fueled by hopes for rising demand from the car industry amid a shortage of supply.

What’s more, palladium became more expensive than platinum last month for the first time in 16 years.

A Smart Way to Play Palladium

Don’t buy now. Wait for a pullback. That’s what I’m going to do, and I think you should too.

After hitting a 16-year high on Monday, palladium has already started dropping hard, and it could take a while longer before it hits bottom.

But when that time comes, probably very soon, there’s going to be a tremendous buying opportunity. And it’s just one of many!

In fact, that’s precisely the kind of buying opportunity we talked about in the first session of our Supercycle Investing Summit, which we just completed 90 minutes ago. If you missed it or want to see it again, just click here for the recording.

All the best,

Sean Brodrick



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Energy & Commodities

Long Term Outlook For Commodities

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Posted by Morris Hubbartt - Super Force Signals

on Friday, 20 October 2017 05:31

Today's videos and charts (double click to enlarge):
 

CRB & Crude Oil Long Term Charts & Video Update

Screen Shot 2017-10-20 at 6.44.42 AM


Franco & SIL Long Term Charts & Video Update



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Energy & Commodities

Car Manufacturers Are Electrifying Copper, “The Metal of the Future”

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Posted by Frank Holmes - US Global Investors

on Thursday, 19 October 2017 09:59

COMM-copper-metal-of-the-future-10132017

As many of you know, copper is often seen as an indicator of economic health, historically falling when overall manufacturing and construction is in contraction mode, rising in times of expansion.

That appears to be the case today. Currently trading above $3 a pound, “Doctor Copper” is up close to 24 percent year-to-date and far outperforming its five-year average from 2012 to 2016.

 

Copper is far outperforming the five year average
click to enlarge

Several factors are driving the price of the red metal right now. Manufacturing activity, as measured by the purchasing manager’s index (PMI), is expanding at a pace we haven’t seen in years in the U.S., eurozone and China. The U.S. expanded for the 100th straight month in September, climbing to a 13-year high of 60.8.

Speculators are also buying in response to word of copper shortages in China, despite September imports of the metal rising to its highest level since March. The world’s second-largest economy took in 1.47 million metric tons of copper ore and concentrates last month, an amount that’s 6 percent higher than the same month in 2016. 

Why Copper Is the “Metal of the Future”



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Energy & Commodities

The “Amazon Effect” Is Coming To Oil Markets

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Posted by Irina Slav - Oilprice.com

on Friday, 13 October 2017 06:49

4246f4d5fc1935d9f8ca7de31ba3704dWhile OPEC mulls over further steps to once again support falling oil prices, tech startups are quietly ushering in a new era in oil and gas: the era of the digital oil field.

Much talk has revolved around how software can completely transform the energy industry, but until recently, it was just talk. Now, things are beginning to change, and some observers, such as Cottonwood Venture Partners’ Mark P. Mills, believe we are on the verge of an oil industry transformation of proportions identical to the transformation that Amazon prompted in retail.

According to Mills, the three technological factors that actualized what he calls “the Amazon effect”, which changed the face of retail forever, are evidenced in oil and gas right now. These are cheap computing with industrial-application capabilities; ubiquitous communication networks; and, of course, cloud tech.



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Energy & Commodities

Coal Fueled Teslas

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Posted by Larry LaBorde

on Wednesday, 11 October 2017 06:49

eia-electricitybyfuel-2040-projectionSeveral countries are making proclamations that state all new cars shall be electric by a certain date.  Who decided on electric cars?  I know they sound “clean” but where does that electricity come from?

About 30.4% of electricity in the United States is generated from coal.  About 19.7% is generated from nuclear.  So over 50% of the US power is from coal and nuclear.  The remaining is as follows:  natural gas = 34%, hydro = 6.5%, wind = 5.6%, biomass = 1.5%, solar = <1% plus other misc. sources.

While there are more engineers alive today than all during history there are several problems with electric cars that have to be overcome.  Of course everyone knows that batteries are a problem.  They are heavy, do not hold enough charge for long trips, are expensive and they are a problem to dispose of at the end of their service life.  The electric motors themselves require rare earth magnets for high efficiency.  You can induce an electric field without them but the efficiency suffers.  Most rare earth magnets are mined in China.



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