Diamond News Archives
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Gold traded lower overnight in a range of $1321 - $1332.10, pressed once again to support at $1321-23 (quadruple bottom, 3/29, 4/5, 4/6 and 4/23 lows).
It weakened against continued strength in the dollar as the DX rose to 91.18 (fresh 3-month high). The greenback was aided by a fresh 4-year high in the US 10-year bond yield (3.033%), and some softness in the yen (108.80 – 109.25, miss on Japan’s All Industry Activity Index), euro ($1.2235 - $1.2175, 2-month low), and pound ($1.3995 - $1.3935).
Global equities were a modest tailwind for gold, however, with the NIKKEI shedding 0.3%, the SCI fell 0.4%, European markets were down from 0.6% to 1.5%, and S&P futures were -0.3%. An unexpected rise in the API US Oil Inventory Report pushed oil lower (WTI down to $67.58) and weighed on stocks.
After the NY open, further strength in the DX (91.22) pressed gold through the quadruple bottom at $1321-23 to reach $1319, where support at the 100-day moving average held. However, a weaker opening to US stocks (S&P -25 to 2611, higher 10-year yield raising concerns over higher borrowing costs slowing the economy) led to a flight to quality that pushed the 10-year yield down to 3.007%.
The DX backed off to 91.04, and gold recovered. The yellow metal bounced back to $1322, where the former support became resistance and capped the advance.
Later in the morning, US stocks turned up (S&P +3 to 2636), despite a further drop in oil (WTI to $67.09, EIA reported an even higher build in US oil inventories than the API last night).
The 10-year yield climbed back to 3.026%, and the dollar made a fresh high (DX to 91.24). Gold was pressed lower, but support in front of...
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Jeff Clark is bullish on precious metals, especially silver. The everything bubble has been going on for 10 years.
How much longer can it last? Gold and silver are the only truly undervalued asset left. Between now and 2020 is a potentially very exciting time in precious metals. And even if there’s no crisis, the technical indicators look great....
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Signs to look for in the housing market
After a brief brush with deflation in 2008, the market conversation is increasingly inflationary. ElliottWaveTV asked co-editor of our monthly Elliott Wave Financial Forecast for his take on where things are headed — with one market in focus in particular: real estate.
Click here to enter your email address to get your email updates and you’ll get a bonus report: What You Need to Know Now About Protecting Yourself from Deflation. It’s free >>[1]
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[Editor’s note: The text version of this video is below.]
Dana Weeks: Hi, I’m Dana Weeks, and I’m here today with Pete Kendall, co-editor of The Elliott Wave Financial Forecast. Pete, it’s great to see you. It’s been a while.
Pete Kendall: Good to see you again, Dana.
DW: I really enjoyed your April edition of The Elliott Wave Financial Forecast. There’s so much great information in there, and you focus on deflation. And I’m curious as to why this is on your radar when we’ve been hearing so much about inflation lately?
PK: Well, a deflationary phenomenon doesn’t need people to not believe in it for it to happen. In fact, later on, when we get into a structural deflation, it will intensify as people expect it to do so. But in the turn into the deflation, it’s common for people to not expect it at all. And that’s kind of what we see at this point.
DW: So Pete, how does this fit in with history?
PK: We’re transitioning into a grand supercycle degree bear market. Therefore, we have a much longer term trend change. We have a...
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Canada’s Pangolin Diamonds (TSX-V:PAN) has found its first diamond at the Jwaneng South Project in Botswana, which is located about 100 km south of the Jwaneng diamond mine, the world’s richest.
Pangolin is led by Leon Daniels, the same geologist who discovered the kimberlite pipe that produced the giant Lesedi La Rona diamond.
The white diamond, measuring about 1 mm, was recovered from a soil sample, which leads the exploration and development firm to believe the source is nearby.
“The presence of a chrome spinel inclusion on the broken surface of the diamond is interpreted to be an indication that the diamond is close to source and transport distance is minimal,” Pangolin said in the statement.
Led by Leon Daniels, the same geologist who discovered the kimberlite pipe that produced the giant Lesedi La Rona diamond, the Botswana-focused miner has been growing its portfolio as of late.
Earlier this month, it bought a 51% stake in a former De Beers mine, the so called AK10 diamond asset, located in the Orapa kimberlite field, the same area where Canada’s Lucara Diamond (TSX:LUC) has its Karowe mine, where Lesedi la Rona was found.
Pangolin, which has the option to increase its holding in AK10 to a maximum of 75%, noted an evaluation of the asset has began and a detailed groundmagnetic survey and a soil sampling have been completed.
The company is currently working on nine diamond development projects in Botswana.
The post Pangolin finds first diamond at Jwaneng project in Botswana appeared first on MINING.com....
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A huge swath of the corporate bond market is looking increasingly vulnerable.
Bonds with the lowest investment grade have been a market darling over the past decade, ballooning in size as low global interest rates drew fund managers seeking higher returns. But as borrowing costs climb to a four-year high just as investors begin to anticipate a downturn in the global economy, some analysts are starting to sound the alarm.
“We’re late in the credit cycle, and trying to figure out when everything turns,” said Erin Lyons, a senior credit strategist at New York-based research firm CreditSights Inc. “Some of these may eventually be downgraded.”
Notes in the lowest rungs above high-yield junk -- in the BBB group from S&P Global Ratings or the Baa bucket from Moody’s Investors Service -- total about $3 trillion, almost the size of Germany’s gross domestic product. The concern is that as rates rise it will cost companies more to roll over their obligations, and if earnings begin to slump as economic growth slows, that could blow out leverage ratios and lead to credit-rating cuts.
The high-grade bond market in the U.S. already has the lowest credit quality mix since the 1980s, according to CreditSights, and there are signs investors are getting nervous. A Bloomberg Barclays gauge of average corporate bond spreads has surged to a six-month high since since reaching an all-time low in early February.
“We’re wary of companies that have seen their debt-to-equity ratios deteriorate,” said Tim Ng, the chief investment officer at New York-based Clearbrook Global Advisors, which advises on $28 billion of assets. “As interest rates increase, if they go too high, the higher debt-to-equity ratios and leverage will have a negative effect on cash flows.”
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