Diamond News Archives

Gold was choppy last night, trading either side of unchanged in a relatively narrow range of $1322.65 - $1328.65.

It continued to fade movements in the US Dollar, which spiked a couple of times north of 91 to reach 91.08 – a fresh 3-month high.

A weaker German IFO report that softened the euro ($1.2224 - $1.2182) helped boost the greenback.

Gold, however, was well supported at the quadruple bottom at $1321-23 and failed to weaken further.

Gold also withstood pressure from firming global equities (NIKKEI rose 0.9%, the SCI added 0.2%, European shares were unch to +0.2%, and S&P futures were +0.4%), and a bounce back in the US 10-year yield from 2.957% to 2.99%.

After the NY open, stronger than expected reports on the Case-Shiller 20-City Home Price Index (0.83% vs. exp. 0.70%), New Home Sales (694k vs. exp. 630k), and Consumer Confidence (128.7 vs. exp. 126) failed to lift the DX above its overnight highs, as did a foray over the 3% level in the US 10-year yield (3.003% - fresh 4-year high).

A pullback in US stocks (S&P -8 to 2661, despite oil reaching $69.38, tensions between Saudis and Yemen) led by losses in Alphabet and 3M weighed on the dollar.

Gold traded higher, and found some light stops beyond the overnight high at $1329 to reach $1330.80 by late morning.

Near mid-day, some calming remarks from Trump on...

• Iran - US could have a deal with Iran through visiting French President Macron
• China – Mnuchin going to China within days to negotiate trade disputes
• North Korea – wants meeting as soon as possible, praises Kim Jong Un as very open and honorable

...took US stocks off...

Today we are getting another whiff of what’s wrong in the markets.  Currently, the Dow Jones Index is down over 500 points, and the NASDAQ is off by more than 100 points.  Who knows where the markets will finally end up at the close of trading, but it really doesn’t matter.  Markets aren’t valued in days or weeks; rather it takes months and years.  So, be patient, and you will be rewarded with at least a 50% decline in the Dow Jones Index.

Unfortunately, a lot of traders, even some frustrated precious metals investors, forget about the STAGES OF A FINANCIAL BUBBLE.  It seems like after about ten years, all memory of the 2008 Financial Meltdown has been all but forgotten.  While I can understand the “This time is different” by the Mainstream Media, I have to get a kick reading comments by disenchanted precious metals investors who have been swayed by the rampant insanity in the markets.

So, let me publish the stages of a financial bubble to remind those who have either been brainwashed by the Mainstream Media or who have just forgotten the fundamentals:

If I had to make a reasonable guesstimate, I would imagine we are somewhere going down the Peak slope or close to the Denial Stage.  However, once the Dow Jones Index falls below 20,000, we will know that the markets have entered into the Fear Stage.  During the Fear Stage is when I see the price and demand for precious metals to increase.  As we enter the Capitulation Stage, then we could experience precious metals demand like we have never seen before.

Let’s take a look at the current Dow Jones Index chart.  As I mentioned in several articles and...

WINDHOEK, April 24 (Reuters) – Diamond and uranium producer Namibia may scrap requirements for black ownership in the mining sector as it seeks to woo investors to an industry that is rebounding with the commodities cycle, its new mines minister said on Tuesday.

Regional peers such as Angola and Zimbabwe are also trying to kickstart their mining sectors by easing investment rules at a time when other African countries such as Democratic Republic of Congo are embracing resource nationalism and hiking taxes and royalties.

"I am not going to withdraw them (black ownership requirements) unilaterally, obviously we first have to discuss and see if they are really serving the purpose of why they exist. If the answer is, they don’t, then maybe we should change," Mines Minister Tom Alweendo told Reuters.

"To give exploration licences to many people who won’t add value, I think we are just slowing down the (black) empowerment that we want to achieve at the end of the day," he said.

Under the current policy, there must be a minimum 20 percent representation of historically disadvantaged, or black Namibians, in the management structure of a company that applies for an exploration licence.

At least 5 percent of the company must be owned by Namibian persons or by a company wholly owned by Namibians.

Namibia gained its independence from South Africa in 1990 and the former German colony suffered from apartheid-style rule with the white minority controlling most of the economy.

The disparities rooted in this state of affairs remain politically thorny issues in both countries.

South Africa's mines minister will appeal a court ruling that held that mining companies did not have to maintain black ownership targets in perpetuity, the Department of Mineral Resources said on...