Quote of the Day:
"People feel that the U.S. is on a gradually improving trend and overall the tone is better. If you get a demand-led story in copper then it can rally again. It’s supported by the long- term supply and demand picture.”
-Carole Ferguson, analyst at Fairfax IS in London, in "Copper Has Longest Bull Streak Since October" by Nicholas Larkin for Bloomberg
Observations - Statistics - Commentary
Auguries — The Great And Powerful Oz
Resource Clips
With all due respect, the majority view is rubbish. If it’s quantitative easing goldbugs were looking for, they just got plenty of it from Europe. Ambrose Evans-Pritchard reports in the Telegraph, “Some 800 banks took up 529.5bn euros of loans at European Central Bank President Mario Draghi’s second long-term refinancing operation (LTRO) on Wednesday, borrowing at 1% for three years with almost any form of collateral. Citigroup said this amounts to €316bn of fresh liquidity, stripping out renewal of old loans. This compares with €200bn in extra stimulus at the first LTRO in December.”
http://jlne.ws/xVb63q
SmartKnowledgeU Discusses Gold & Silver Manipulation on the Keiser Report (Video)
The Underground Investor
If bullion banks were taking the opposite side of the bet and were net long gold and silver and were trying to squeeze speculators that were short gold and silver for their own benefit, then I would agree that the shorts could be run over and stampeded over, as happened to SemGroup in 2008. However, because the bullion banks perpetually maintain positions that suppress the price of gold and silver, I don’t ever foresee them getting run over in a manner comparable to what happened to Semgroup.
http://jlne.ws/A70lCh
**JS Kim also warns of the danger in trusting in one person's views on gold and silver. This piece is made even more interesting by the crazy webcam angle, which he notes in the text.
METALS OUTLOOK: Gold Could Rebound Again Next Week, But Must Hold Key Price Levels
Kitco News
Gold prices could rebound again next week as the underlying fundamentals of the longer-term outlook have not changed, but market watchers said the yellow metal needs to hold important technical chart price levels to resume rising in the short-term. Prices were lower on Friday and on the week. The most-active April gold contract on the Comex division of the New York Mercantile Exchange settled at $1,709.80 an ounce, down 3.75% on the week. March silver settled at $34.338 an ounce, down 2.43% on the week.
http://jlne.ws/A6jNZq
Alcoa Named Most Admired Metals Company in the World
Press Release
Alcoa (NYSE:AA) has been named the most admired metals company in the world in Fortunemagazine’s annual ranking on corporate reputation. Alcoa shared the top ranking with ArcelorMittal, the European integrated steel and mining company. Alcoa also received top ranking in sustainability and innovation, testament to the Company’s ongoing leadership in two areas that are key to the success of Alcoa’s business, customers and communities.
http://jlne.ws/zYYfVc
Prospectors & Developers Association of Canada presents PDAC 2012
International Convention, Trade Show & Investors Exchange - Mining Investment Show
March 4-7, 2012
Toronto, Canada
PDAC International Convention, Trade Show & Investors Exchange is the world’s leading Convention for people, companies and organizations in, or connected with, mineral exploration. The four-day annual Convention held in Toronto, Canada has grown in size, stature and influence since it began in 1932 and today is the event of choice for the world’s mineral industry. In addition to meeting over 1,000 exhibitors, 27,700 attendees from 120 countries, it allows you the opportunity to attend technical sessions, short courses as well as social and networking events .
http://jlne.ws/y2ZSU5
London Metal Exchange
Nickel, Cobalt & Molybdenum 2012 - London
March 13-14 2012
The LME will be presenting at Metal-Pages' annual Nickel, Cobalt & Molybdenum conference in London on 13-14 March 2012. The conference will bring together experts from both the financial sector and the cobalt, nickel and molybdenum industries through a series of dynamic presentations and panel discussions.
http://jlne.ws/zP4xKz
Metals Service Center Institute (MSCI) Product Division Conference
Specialty Metals Conference 2012
March 22-23, 2012
Bonita Springs, FL
http://jlne.ws/w2wZnM
| JLN Metals Scorecard | 3/1/2012 |
| NYSE LIFFE US Total Volume | 121,531 |
| 100 oz. Gold Futures Volumes | |
| NYSE LIFFE US | 58 |
| CME/NYMEX (Globex + PNT) | 236,710 |
| CME/NYMEX Open Auction | 2,996 |
| NYSE LIFFE market share | 0.02% |
| NYSE LIFFE US Electronic market share | 0.02% |
| 100 oz. Gold Futures Open Interest | |
| CME/NYMEX | 456,944 |
| NYSE LIFFE US | 1601 |
| NYSE LIFFE US market share | 0.35% |
| Mini Gold Volume | |
| NYSE LIFFE US | 7,335 |
| CME E-micro Gold (10 Troy oz) | 3,080 |
| CME/NYMEX miNY | 756 |
| NYSE Liffe market share (Contracts) | 65.66% |
| NYSE Liffe market share (Notional) | 78.02% |
| 5,000 oz. Silver Futures Volume | |
| NYSE LIFFE US | 6 |
| CME/NYMEX | 64,029 |
| NYSE LIFFE US market share | 0.01% |
| Mini Silver Volume | |
| NYSE LIFFE US | 3,732 |
| CME/NYMEX miNY | 166 |
| CME/NYMEX E-mini | 0 |
| NYSE LIFFE US market share | 95.74% |
| Additional Metal Futures Volume statistics | |
| EUREX Gold Futures (100 troy ounces) | 4 |
| TOCOM Gold Futures* (1 kg / 32.15 ounces) | 55,573 |
| TOCOM Mini Gold Futures* (100 grams / 3.215 ounces) | 12,835 |
| TOCOM Silver Futures* (10 kg / 321.51 ounces) | 575 |
| MCX India* (1 kg / 32.15 ounces) | 52,554 |
| Dubai Gold & Commodities Exchange (32 troy ounces / 1 kg) | 1,504 |
| *Today's date | |
| METAL ETFS | METAL ETFS |
| ProShares Ultra Silver | 586,935 |
| Powershares DB Base Metals Fund | 40,785 |
| Market Vectors Gold Miners GG | 4,212,807 |
| MARKET VECTORS JUNIOR | 685,586 |
| ProShares UltraShort Gold | 168,049 |
| ETFS Precious Metals Baskets Trust | 2,439 |
| iShares COMEX Gold Trust | 1,133,238 |
| iShares Silver Trust (ETF) historical prices | 4,503,788 |
| ETFS PHSYICAL PALLADIUM SHARES | 7,654 |
| ETFS PHYSICAL PLATINUM SHARES | 10,559 |
| ETFS GOLD TRUST | 80,537 |
| ETFS SILVER TRUST | 122,100 |
| Market Vectors Steel | 44,309 |
| ProShares Ultra Gold | 72,806 |
| ProShares UltraShort Silver | 1,099,436 |
| SPDR Gold Trust | 5,026,334 |
Lead Stories
Comex Gold, Silver Wilt As Dollar Climbs
WSJ.com
Gold fell on Friday as strong gains in the dollar left less appetite for the precious metal as an alternative asset. Gold for April delivery, the most actively traded contract, was recently down $9.90, or 0.6%, at $1,712.30 a troy ounce on the Comex division of the New York Mercantile Exchange. The dollar snapped higher Friday as some traders closed out bets against the currency. Some investors had been expecting a third round of asset purchases from the Federal Reserve, which would likely weigh on the dollar and send investors seeking gold as an alternative.
http://jlne.ws/y90JFl
Copper steadies, focus on Chinese demand
Reuters
Copper prices steadied on Friday, after rising more than 1 percent in the previous session following reassuring manufacturing data from China, but continued concerns about slow demand from the metal's top consumer kept prices soft.
http://jlne.ws/AcbJgi
Copper Has Longest Bull Streak Since October
Bloomberg
Copper traders are bullish for a fourth consecutive week, the longest streak since October, as manufacturing strengthens from China to the U.S. and stockpiles decline to the lowest in more than two years.
http://jlne.ws/x5A5o1
European physical copper end-users in spot market, premiums high
Platts
Physical copper premiums stayed high in Europe this week on a mixture of factors including a lack of material due to previous arbitrage shipments to Shanghai, low inventory forcing end-users to shop in the spot market and delays to vessels coming from Chile, according to sources. Two producers said that over recent months, uncertainty had led end-users to whittle down inventory and that now they are being forced to buy spot.
http://jlne.ws/zU2fbU
JPMorgan to sell metals concentrates business
Reuters
JPMorgan Chase & Co. is looking to sell its metal concentrates business due to U.S. regulatory restrictions following its acquisition of RBS Sempra Commodities, and currently faces a deadline of mid-year, industry sources told Reuters.
http://jlne.ws/Ac65e8
Glenstrata is still far from a done deal
FT.com
“Glenstrata” will be big. When Glencore and Xstrata announced their proposed merger they talked of the “enhanced scale and market position” the combined group would have. Ivan Glasenberg, Glencore’s chief executive, described it as a “new powerhouse in the global commodities industry." Yet the companies are walking a tightrope between hyping the size and potency of the new company, and playing down potential regulatory concerns.
http://jlne.ws/zbKcyX
**Will the proposed Glenstrata become too big to regulate? It would ultimately be the largest miner of zinc, lead and ferrochrome, and supplier of thermal coal worldwide. Glencore last week: “The parties expect the merger between Glencore and Xstrata not to result in any negative impact on competition in the commodity markets in which the two companies operate." Check out this article.
Implats strike costs $322 million, 120,000 platinum ounces
Reuters via Mineweb
Impala Platinum said that a crippling illegal strike at its key Rustenburg operation has now cost it 120,000 ounces in lost platinum group metals production, which equates to 2.4 billion rand ($322 million) in lost revenue. Johan Theron, a senior executive at Implats, also told Reuters on Friday that the operation was still set to reboot next week as almost 15,000 mineworkers have been rehired, but it remained unclear when full production would resume.
http://jlne.ws/w0GxbO
Zimbabwe Government Intention Not To Nationalize
Dow Jones via Fox Business
"Indigenization has caused a lot of anxiety to investors," Minister Tapiwa Mashakada said, speaking at a Zimbabwe trade and investment conference in South Africa. His comments come as Impala Platinum Holdings Ltd. (IMP.JO) is fighting a government threat to remove its Zimbabwe assets for failing to meet the requirements of the country's indigenization law. This law requires foreign investors to give up 51% of assets in a combination of stakes to government-approved assets or community trusts and employee ownership schemes.
http://jlne.ws/AFmZrS
Vedanta Offers to Buy Government Stakes in Hindustan Zinc, Bharat Aluminium
WSJ.com
India-focused miner Vedanta Resources PLC Friday confirmed that it has offered 160 billion rupees ($3.2 billion) to buy the government’s stakes in Hindustan Zinc Ltd. and the erstwhile Bharat Aluminium Co. “They have asked for the offer. We have given them the offer, but haven’t heard back from the government. Vedanta also has to arrange so much of funds, so we are not sure where the matter is at the moment,” Vedanta Chairman Anil Agarwal told reporters outside the gates of the federal oil ministry.
http://jlne.ws/xjkkS4
Kazakhmys costs offset stronger prices
FT.com
Kazakhmys, the FTSE 100 miner and Kazakhstan’s biggest copper producer, posted flat earnings for 2011 as stronger metals prices were offset by an 18 per cent rise in production costs, driven by the effect of declining grades. Rising costs have been a running theme among results from the mining industry as the price of raw materials and labour have soared.
http://jlne.ws/y79BiN
Futures & ETF News
US Stock Futures Fall On Weak Data From Europe; Oil, Gold Down
Dow Jones via NASDAQ
U.S. stock futures were lower Friday morning as a negative turn in European markets on the back of weak economic data prompted a pullback from recent gains.
http://jlne.ws/yvdk8Z
Copper Futures Near Flat On Investor Caution
WSJ.com
Copper futures hovered near unchanged Friday amid broad market caution in the wake of a sudden spike in crude oil prices and a stronger dollar. The most actively traded contract, for May delivery, was recently down 1.00 cent, or 0.3%, at $3.9215 a pound on the Comex division of the New York Mercantile Exchange. Copper futures wavered in a narrow range of about 1% Friday, as caution gripped markets in the wake of two volatile trading sessions which saw prices bounce as much as 4% from low to high.
http://jlne.ws/zWuClS
Gold Bugs: ETFs Hold More Gold Than Italy, France
WSJ.com
Exchange-traded funds continue to climb the charts in the gold world. At 2,469 metric tons, physical gold held by ETFs is now the world’s fourth-largest gold hoard, behind only the official holdings of the US, Germany and the IMF, RBS says. In 10 years, gold has gone from a market dominated by central banks, a tight-knit collection of coin buyers and bullion banks, and the jewelry trade, to a more open market.
http://jlne.ws/xja56a
Commodity ETF Flows: Precious Metals Leads Continued Inflow Surge To Sector
Hard Assets Investor
For second-straight week, all commodity asset classes attract positive inflows. Investors continued sending capital to commodity-related exchange-traded products this past week ending Thursday, even though precious metals such as gold and silver saw major price corrections. Precious metals led the positive wave of inflows to all asset classes, with $588 million in new investments, followed by energy, with $348 million; broad market (multicommodity), with $207 million; industrial metals, with $109 million; and agriculture, with $42 million in inflows.
http://bit.ly/zxDaLy
Commodities
Commodities Rally to Highest Level Since May, Led by Soaring Energy Prices
Bloomberg
Commodities rose to the highest since May, led by surging energy prices, as tensions in the Middle East escalated and improving economic data signaled rising demand for raw materials. The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 1.4 percent to settle at 713.18 at 3:48 p.m. New York time, after touching 717.45, the highest since May 5. Crude oil topped $110 a barrel for the first time in 10 months, and gold futures rebounded from the biggest decline of the year.
http://jlne.ws/xt6EK2
Oil leaps to highest level since mid-2008
FT.com
Oil leapt to the highest level since the market peak of mid-2008 in a frenzy of buying that followed a disputed report of a pipeline blast in Saudi Arabia. The report, swiftly denied by a Saudi official, was posted on web sites including PressTV, an English-language news channel based in Tehran. Iran is the Saudi kingdom’s main rival in the Middle East oil market, and stands to lose market share as western sanctions increase over its nuclear programme.
http://on.ft.com/wF3UMf
Burst pipe reports spark rise in oil futures
ShareCast
Reports of a burst pipe sent crude oil futures racing past the 110 dollars mark last night, despite the claims being denied by Saudi Arabia, where the pipe was alleged to have occurred. The surge came in the final hour of trading, following a report by Press TV, an English-speaking Iranian state-run broadcaster, which Saudi officials did their best to quash. Press TV claimed that the alleged burst was the result of an explosion in the eastern city of Awamiyah, although that was the extent of the details.
http://jlne.ws/zTWsOU
Corn Drops as Farmers Boost Grain Sales; Soybeans Climb for 10th Session
Bloomberg
Corn dropped for a second day on signs that farmer sales will rise in the U.S. and South America and as a stronger dollar reduced the appeal of commodities. Soybeans gained for a 10th session. Producers were encouraged to increase sales after average U.S. cash-corn prices this week climbed to the highest since November, data from the Minneapolis Grain Exchange show. The dollar rose as much as 0.8 percent against a basket of six currencies, reducing the appeal of commodities as alternative assets.
http://jlne.ws/zNeniV
Investments
Mining stocks – Still on the runway
Free Gold Money Report
Six months ago I wrote that the gold mining stocks were on the runway and ready for take-off. I expected the gold mining stocks from that point to start outperforming gold bullion itself. Since then, however, little has happened.
http://jlne.ws/xVxd6i
Gold prospers as $10 trillion in “safe” assets evaporate
Emerging Money via NASDAQ
In a recent Wall Street Journal article, "Fewer Ports in a Global Storm," it was reported that Credit Suisse calculated that assets deemed "safe" or risk-free by investors had plunged in value from $22 trillion to $12 trillion over the last four years. What is so poignant about this is the increase in the value of gold over that time. SPDR Gold Shares, the exchange-traded fund for gold, went from about $85 a share to over $160 during the same period.
http://jlne.ws/yW3FZB
The Ignored Precious Metal—Platinum—Is Soaring
PRWeb via Houston Chronicle
Sasha Cekerevac, contributor to Penny Stock Detectives, believes that, while everyone is talking about gold and the move up in price in that precious metals sector, investors should be looking at platinum. In his recent Penny Stock Detectives article, Cekerevac argues that platinum has moved up and closed the gap to gold since December. Since that time period, the price spread between gold and platinum went from approximately $220.00 to a current spread of only $50.00. A spread most investors are missing out on, says the financial editor.
http://jlne.ws/zGTq2I
Production News
Strike hits First Quantum's Zambia copper mine
Reuters
Production at the Zambian flagship copper mine of Canada's First Quantum Minerals has ground to a halt because of a strike over wages, the Zambian labour minister said on Friday. Workers at the Kansanshi mine, Zambia's largest copper mine, which produced 231,000 tonnes of the red metal in 2010, downed tools on Thursday, Fackson Shamenda said in a statement.
http://jlne.ws/A5SBz7
Philippine 2011 Metal Output Value Up 9% At PHP122.15 Bln
Dow Jones via TradingCharts.com
The value of Philippine metal production in 2011 rose 9% to PHP122.15 billion from PHP111.97 billion in 2010, with a decline in gold output offset by gains in copper, nickel, chromite, silver, zinc and iron ore production, the Bureau of Mines and Geosciences reported Thursday. Higher global prices and an increase in output following the arrival of new entrants in nickel, gold, silver, copper and chromite led to the rise in value.
http://jlne.ws/z5Hg2x
Sparks fly at mining meet
The Philippine Star
Environmental advocate Regina Paz "Gina" Lopez called mining groups liars, while industrialist Manuel V. Pangilinan, whose vast conglomerate includes Philex Mining, grabbed a microphone and stood up at one point to tell her, "Now you're lying." Sparks flew at an afternoon forum at InterContinental Manila in Makati City yesterday among miners, anti-mining groups and stakeholders.
http://jlne.ws/wshJPP
Cameco to take the reins at Millennium uranium project
Mineweb
Top uranium producer Cameco (TSX: CCO) is set to become the majority owner of the Millenium uranium project in Saskatchewan. Areva, a nuclear power heavyweight, agreed to sell its 27.94 percent stake in the Millennium project to Cameco for $150 million, Cameco said on Friday morning. That would bring Cameco's stake in the Millennium project to 69.9 percent from the 41.96 percent it already owns.
http://jlne.ws/xxRYDA
Regulatory News
Insight: Wall Street, Fed face off over physical commodities
Reuters
Wall Street's biggest banks are locked in an increasingly frantic struggle with the Federal Reserve over the right to retain the jewels of their commodity trading empires: warehouses, storage tanks and other hard assets worth billions of dollars. While the battle over proprietary trading and new derivatives regulations has taken place largely in public view since the 2008 financial crisis, the fight by JPMorgan Chase, Morgan Stanley and Goldman Sachs to retain or expand their prized physical commodity operations - most acquired in only the past six years - has remained hidden.
http://jlne.ws/yGRUzm
CFTC chief pushes for position limits
MarketWatch
The top commodities regulator, Gary Gensler, on Friday said that he supports bringing limits on trading in the commodities market in place as Congress intended, a regulation that seeks to curb excessive speculation and potential manipulation in oil and other energy markets.
http://jlne.ws/xAtdpF
Reports, Macroeconomics & Inflation
Inflation: Not as low as you think
CBS News
Forget the modest 3.1 percent rise in the Consumer Price Index, the government's widely used measure of inflation. Everyday prices are up some 8 percent over the past year, according to the American Institute for Economic Research.
http://jlne.ws/wyeYUo
Surprise! The Case for QE3 Is Stronger Than Ever
The Atlantic
For the past three years, economists have loved to hate the recovery. But they're coming around to the possibility that they might have to fall in love with the idea that the comeback is real. Typically, a stronger economy means a more conservative Fed.
http://jlne.ws/wlYzpp
No, Inflation Isn't 8 Percent
Forbes
A study from the American Institute for Economic Research has been getting play this week for the finding that an inflation measure limited to “everyday” purchases sits at 8 percent, far above the 3.1 percent “headline” CPI number put out by the government. CBS headlines the report with “Inflation: Not as Low as You Think” and Drudge went with the succinct “Real inflation at 8%.” But all the report really tells us is something we already know: gas prices have gone up a lot.
http://jlne.ws/ApvWvS
Physicals & Company News
Shore Gold Unable to Secure Financing, Embarks on Cost-Cutting Drive; Shares Decline by 31% to Below Yr Low
NASDAQ
George H. Read, P. Geo., Senior Vice President Exploration and Development of Shore Gold Inc. (SGF.TO) are down below year lows today, with shares currently trading at 28 cents. The shares dipped to 20 cents earlier today. Close to 3.7 million shares have changed hands. The company announced today that since the completion of the Feasibility Study Technical Report on the Star - Orion South Diamond Project in late August 2011, Shore has actively pursued various options for the financing of Project development.
http://jlne.ws/yYyLkL
Colombian Mines Strikes $15.5 Million Agreement With Strategic Investor At Yarumalito
Marketwire via Yahoo! Finance
Colombian Mines Corporation ("Colombian Mines" or "the Company") is pleased to announce that, subject to regulatory approval, Teck Resources Limited ("Teck") and the Company have entered into an agreement with a value of $15,500,000 to Colombian Mines and its shareholders. Teck will make a $1,000,110 "good faith" strategic investment in Colombian Mines by means of a non brokered private placement.
http://jlne.ws/AlkRwZ
First Quantum closes Congo claims agreement with ENRC
Reuters via MiningWeekly.com
Canada's First Quantum Minerals said it has settled its agreement in Congo regarding a claim dispute with Kazakh miner Eurasian Natural Resources Corp (ENRC). The agreement, announced in January, under which ENRC will pay $1.25 billion to First Quantum, closes the chapter on a long-running dispute over ownership of the Kolwezi project in the Democratic Reupublic of Congo. First Quantum said all disputes between it, ENRC, the DR Congo government, the International Finance Corp and the Industrial Development Corp have been settled.
http://jlne.ws/AEJdUh
