China has just reported its largest two-month copper imports in history.
The world remains firmly entrenched in a deglobalization trend. Even if we got a (temporary) US-China trade deal over the week-end, this foes not change the The push to secure strategic metals is just one manifestation of this broader shift unfolding in the markets. Source: Tavi Costa, Bloomberg
The Gold/Silver Price Ratio is now trading at 102x, the highest level in history since the U.S.
Dollar came off the Gold Standard (excluding the Covid scare) Source: Barchart
As highlighted by Otavio (Tavi) Costa, we're currently seeing the biggest drop in the gold-to-silver ratio since 2008.
That move back then marked the start of a long downtrend that eventually took the ratio all the way to 31 over the next three years. Are we heading into a similar setup now? (except we're starting from an even more extreme level). We’ve just dipped below 100; in 2008, the peak was 85. Just to put it in perspective: If the ratio drops to 30 today, silver would be trading around $110 an ounce. Source: Bloomberg, Crescat Capital
GOLD IS OUTPERFORMING THE STOCK MARKET BY A WHOPPING 42.5% SO FAR THIS YEAR 😮
Source: GURGAVIN @gurgavin on X
Current Gold rally put in perspective
Source: Chart @topdowncharts
CHINA HITS BACK: RARE EARTH EXPORT CRACKDOWN RISKS GLOBAL CAR CRISIS
China’s hitting back at Trump’s 145% tariffs by choking off exports of rare earths — the weird metals your car, wind turbine, and fighter jet desperately need. That includes stuff like dysprosium and terbium which power the super-strong magnets in EV motors and defense tech. China’s latest export controls on rare earth minerals could cause shutdowns in automotive production, with stockpiles of essential magnets set to run out within months if Beijing fully chokes off exports. Beijing expanded its export restrictions to seven rare earth elements and magnets vital for electric vehicles, wind turbines and fighter jets in early April in retaliation for US President Donald Trump’s steep tariffs of 145 per cent on China. Government officials, traders and auto executives said that, with inventories estimated to last between three and six months, companies would be racing to stockpile more material and find alternative supplies to avoid major disruption. Jan Giese, a metals trader at Frankfurt-based Tradium, warned that customers had been caught off guard and most car groups and their suppliers appear to be holding only two to three months’ worth of magnets. “If we don’t see magnet deliveries to the EU or Japan in that time or at least close to that, then I think we will see genuine problems in the automotive supply chain,” said Giese. Source: FT
Physical gold craziness...
The big 3 vaults (Brinks, JPM, HSBC), are running out of space where to store the physical; the 3 alone hold more than 35 million oz of physical.
Great Visualization
source : miningvisuals
