Breaking News:
Wind of change... BREXIT just happened this morning and we want to talk shortly about it.
„The risk is heavily underestimated“ said Stefan Bielmeier, Chief Economist of DZ Bank last week in an interview with the magazine Focus Money about the BREXIT. Political moved exchanges have short legs is a general saying. But the BREXIT is a caesura and turning point for whole Europe. England has now 2 years time for the exit.
Possible Consequences:
Tough negotiations for the exit, new negotiations for the bi-lateral treaties
- EU hast to stand tough and will act as a hardliner because all the countries like Spain and Portugal want to use then the same advantages like the customs Union but stay independent
Euro-Strength against Dollar, CHF, NOK and other currencies
- Great for vacation but bitter for the export of countries like England and Switzerland and all other hard currency countries
Premier David Cameron just stepped back as prime minister. This is in addition a power vacuum, which weakens England too. The GPD of England might tumble by 2% in the next 1-2 years until the markets regain a balance. This is equal to a recession. The treaty negotiations will be very tough as EU hast o demonstrate their strength in leader ship now and the on the other side the British will not accept anything from the outside. A summer vacation in the land of the beautiful romance movie scenery of Rosamunde Pilcher this year might be a good idea and is maybe the few remaining positive impacts of the BREXIT....
Conclusion: The BREXIT is a another Black Swan event in history but with a long-term influence for the whole continent. The EU of toady hast o change a lot, if this inhomogeneous association of states will exist further on. The migration politics will be overthought because this was one the big themes in the campaign oft he BREXIT supporters and the voters made clear that they want a controlled and limited migration of people. For us as investors it show one more time even that gold and silver are very good insurances against Black Swan events and other unforeseeable events in time. This in combination with producing and dividend paying companies like Caledonia Mining, Sibanye Gold or Agnico Eagle hedge a portfolio. Today the DAX and SMI are heavily under pressure and the next days and weeks we will see fantastic buying opportunities to shop cheap high quality stocks with high dividend yields.
Gold video: negative interest - and the winner is gold
Top-News of the week:
Lucara Diamond: What comes after the first record of diamond sales?
Lucara is a true success story! The Karowe Mine in Botswana creates large diamonds from time to time, which nobody had on the agenda before. Therefore, Lucara was able to sell a 813 carat diamond in May for 63.11 million US$ and retains a 10% interest in the net profit received from the sale of the resultant polished diamonds. The sale of the 813 carat diamond is the highest price ever achieved for a rough diamond, breaking all records. But, this could only be a foretaste for that what would happen on the 29th of June. On this day, the company will sell its spectacular 1,109 carat, Lesedi La Rona diamond which will take place at Sotheby's London. It could be expected that this one will yield some 80 million US$ or more. An amount which would help Lucara Diamond to even raise its production within the next months and years.
Market Watch:
As much nuclear reactors online as never before! – When will the uranium market profit?
The uranium sector was hip for a long time, but since Fukushima it is more like a mousy person for investors. Although there are more nuclear reactors online like never before. On May, the 20 th 2016 at 16.11 o’clock local time, Nowoworonesch II-1 achieved the lowest manageable power after nine years of planning and construction. Nowoworonesch II-1 is the first reactor of generation III+ which achieved first criticality. Something about the classification: Generation III describes the category of the so-called advanced reactors, while generation IV describes the so-called future reactor types (which are being pushed on from the Generation IV International Forum at the moment), but which are not existent, yet. Therefore Nowoworonesch II-1 is the most modern and the most advanced (from a technical perspective) reactor at the very moment, still ahead of the modern Chinese reactors.
The US also still walk the nuclear way. As the first reactor since more than 20 years and the first one in the 21 st century, block “Watts-Bar-2” of the Tennessee Valley Authority went critical on May, the 23 rd 2016 at around 2.16 o’clock AM. Two new reactors within only three days mean a total of 446 worldwide, which is more than ever before. Although there are 63 more in the construction phase at the moment.
A turning point for uranium? Hopefully, because there has not be any reaction, yet. The uranium spot price bobs up and down at around 28.50 US$, even though it showed some small upwards trend since April. The positive thing: This situation provides a perfect timing for a market entry. Good uranium companies are rare. Besides the well-established majors like Cameco and Uranium One, smaller companies like Energy Fuels and Uranium Energy and top-developers like Fission Uranium should be counted among the winners.
Video: UEC - production ahead?
Video: Fission - the next Uranium producer in Canada?
Lithium: Rapid increase in demand!
The current rapid increase of the lithium prices is based on an increasing demand. While the lithium demand stood at around 65,000 tons of LCE in 2000, there were 190,000 tons demanded in 2015. Leading analyst houses like Canaccord which are in the sector for a long term, anticipate that the lithium demand will increase to 350,000 tons in 2020 and to 700,000 tons by 2025. Driving factor will be the demand from the battery-sector in combination with the automotive sector. While one third of the total demand will come from this sector right now, it will raise up to 75% by 2025.
Company News:
Pershing Gold: Publishment of the Preliminary Environmental Assessment and Start of the Public Scoping for the Relief Canyon Mine Expansion
A couple of days ago, Pershing Gold announced, that on the 3 rd of June 2016, a 30-day public review period requesting public comments on the Preliminary Environmental Assessment for Pershing Gold's Relief Canyon Mine has been started. At the conclusion of the public comment period, which ends on July 3, 2016, the U.S. Bureau of Land Management (BLM) will respond to any public comments received on the Preliminary Environmental Assessment, make any necessary changes to the document, and finalize its decision for the proposed mine expansion. BLM's publication of the Preliminary Environmental Assessment and initiation of the public comment period for the document is a significant milestone in the permitting process for the mine. Pershing Gold’s management anticipates the approval of the Plan of Operations Modification in the third quarter of this year.
News: PGLC - BLM permit
Cyprium Mining announces assay results from the Potosi Silver MineA few days ago, Cyprium Mining announced the results from thirty-five underground samples taken as part of its ongoing exploration program of the Tunel body of the Potosi silver mine located in Santa Eulalia, Mexico. The assays showed up to 1,420 g/t silver, 3.95% lead and 4.01% zinc. The company is currently finalizing the evaluation work in order to add further areas of mine development and extraction activities within the Tunel body's levels 2 to 4. The goal is to start extracting mineralized material from at least three different areas when drilling and blasting starts.
News: CUG - 37% Zinc results
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