Connect with us

Articles

Copper Views & Cannabis News | Midas Letter RAW ft VXTR, HMBL, OAM

Copper has been surging hitting a 12 year high of $4.80 per pound in June. Today, it’s hovering near six-week highs, trading just over $4 despite claims…

Share this article:

Published

on

This article was originally published by Midas Letter

Copper has been surging hitting a 12 year high of $4.80 per pound in June. Today, it’s hovering near six-week highs, trading just over $4 despite claims that inflation is transitory. Copper is a fundamental resource for anything electronic. Every automobile, fridge, television, or phone needs the commodity. Along with the metals’ superior conductivity for electricity, it is also corrosion-resistant and attractive for building surfaces, so is used extensively in construction.

Despite the high demand, copper is in increasingly short supply because grades at the world’s largest mines are decreasing. Another wrench recently thrown into the works of copper supply is the news that Mongolia’s government is seeking to cancel a deal with miner Rio Tinto to expand the Oyu Tolgoi copper mine in the Gobi Desert and replace it with a new agreement. The new Mongolian government wants a bigger slice of the pie of what would be the 3rd largest copper producer in the world. With no agreement in place, the delay of copper supply will have to be factored into a new copper price.

The high demand and need for copper will only have a positive effect on copper prices in the near term and long term. While copper is at current price levels, we discuss potential copper investment opportunities.

Also on the show, we discuss the latest happenings in the world of cannabis and weed stocks.

One of the largest news items this week is the financial results and CEO comments coming from Tilray Inc. (NASDAQ:TLRY). Tilray reported a net loss of USD$336.01 million in fiscal 2021 despite reporting a net income of $33.6-million during the fourth quarter. CEO Irwin Simon also came out and said the company is sitting on a $500 million war chest and is ready to make a deal for a US cannabis company regardless of federal legalization. That balance sheet is impressive and might be able to sway cannabis companies generating good revenues in certain states to join with Tilray – as Aphria did.

We also have three exclusive interviews on deck in today’s show:

Humble & Fume Inc. (CNSX:HMBL) Chairman Shawn Dym

Humble & Fume is a cannabis distribution solutions company providing customer-centric services and accessories. The company is fully integrated with complete sales, distribution, and trade marketing support. Humble & Fume has a large product portfolio, working with over 200 industry brands, including Canadian flower favourites Supreme Cannabis, 48North, Olli products, as well as its in-house FUME extracts brand. Humble & Fume recently launched FUME, a proprietary extraction process that removes terpenes from the plant without the use of solvents, guaranteeing a pure, true-to-strain product.

OverActive Media (CVE:OAM) President & CEO Chris Overholt

OverActive Media is in the business of building the world’s premier esports platform. They already own some of the best franchises in their respective esports leagues and have partnerships with global game publishers. With the growing excitement within the esports industry, OverActive Media has a growing audience of over 130 million gamers. The companies growth has gained the attention of celebrity shareholders from pop stars like The Weeknd to professional sports stars like Toronto Maple Leafs Mitch Marner. OverActive has seen an impressive 276% revenue growth in the last year, watch the full interview to see how they accomplished what they have.

Appraisers Now Ltd. (Anow) (A Voxtur Analytics Corp (OTCMKTS:VXTRF, CVE:VXTR) company) Founder & CEO Marty Haldane

Eight Capital came out recently and initiated a “Buy” rating of Voxtur Analytics with a target price of $1.00. With all the growth in Voxtur’s ecosystem, Eight Capital is calling for a big uptick in both top and bottom lines in the future. When Voxtur acquired Anow, it was said that the merger would bolster Voxtur margins significantly. Voxtur has financial results coming out in August which should show this increase in margin and the additional revenue Anow brings to the Voxtur ecosystem of real estate technologies. Marty Haldane details how the appraisal business has grown since joining Voxtur.

Original article: Copper Views & Cannabis News | Midas Letter RAW ft VXTR, HMBL, OAM

©2021 Midas Letter. All Rights Reserved.

Economics

Looking for the Next Big Crypto to Explode in 2021? Try These 5 Coins

Bitcoin (CCC:BTC-USD) launched on January 3, 2009. The oldest and largest cryptocurrency, prices of this coin have swung wildly since its inception. But…

Share this article:

Bitcoin (CCC:BTC-USD) launched on January 3, 2009. The oldest and largest cryptocurrency, prices of this coin have swung wildly since its inception. But last year, Bitcoin experienced explosive institutional and retail interest in the space alongside the broader crypto world. Now thousands of altcoin investors are betting that they can pick the next crypto to explode.

Even though Bitcoin recently underwent a correction, trading volume remains strong between $42,000 and $50,000. Of course, that is very expensive, considering the median household income is $62,843 right now. Yes, you can invest in Bitcoin through PayPal (NASDAQ:PYPL) and Square (NYSE:SQ). But the crypto is still expensive when you compare it to several altcoins out there.

Plus, there are over 7,000 cryptocurrencies you can choose from for your portfolio. When it comes to making big gain, it’s easier for a coin to gain 100x if you’re starting from a smaller size, rather than chasing after a rocket that’s already taken off.

Here are 5 coins that could be the next big crypto to explode:

When investing in any crypto, remember to check if there is an inherent utility to the coin. Even cryptos meme coins need developers to crank out regular updates to stay relevant.

The Next Big Crypto to Explode: Ethereum (ETH-USD)

Source: shutterstock

Ethereum is a decentralized, blockchain-based software platform, and its cryptocurrency is called Ether or Ethereum. Ether is the world’s second-largest cryptocurrency and has held this position for a long time now. Recently, Ethereum has been in the news for its hard fork “London upgrade,” a major revamp for the platform. The hard fork comprises five Ethereum Improvement Proposals (EIPs). The upgrades are important, but the most notable is EIP 1559, which reduced Ether supply with every transaction.

In addition, the upgrade will lead to the Ethereum network handling more transactions per second, improving scalability, and bringing down transaction fees. Another major benefit is expected to decrease the total number of ether coins in circulation, making it a deflationary cryptocurrency. In the run-up to the upgrade, Ethereum did very well. However, considering the next upgrade will occur at the end of 2021, there is an upside here that you can exploit.

Binance Coin (BNB-USD)

A Binance Coin (BNB) sits in front of trading charts.Source: Shutterstock

Binance is one of the most successful crypto exchanges globally when ranked by trading volumes, which is why BNB, its native cryptocurrency, is soaring.

Much like Bitcoin, the thing to like about Binance Coin is the hard limit on the total number of tokens in circulation. It has a strict maximum limit of 200 million BNB tokens. As a result, the token price has risen exponentially for the year thus far.

Binance uses around one-fifth of its profits every quarter to eliminate or “burn” BNB tokens. The reason for destroying or “burning,” coins makes sense: it increases the worth of the remaining tokens.

One of the biggest reasons to be optimistic about Binance Coin is its many use cases. Initially, it was developed as a utility token for discounted trading fees in 2017. But now, you can use it to make travel payments, financial services, and entertainment, among others.

The driving force behind any token is its usability and that’s why BNB will be the next crypto to explode.

Tether (USDT-USD)

A concept token for the Tether (USDT) cryptocurrency.Source: DIAMOND VISUALS / Shutterstock.com

Stablecoins are a new breed of crypto gaining prominence. They are a less volatile alternative to Bitcoin because they are linked to an asset like the U.S. dollar, as is the case with Tether. The cryptocurrency allows you to transact in traditional currencies and avoid the complexities of digital currencies.

Tether is designed to bridge fiat currencies and cryptocurrencies, allowing users to transfer other cryptocurrencies back to U.S. dollars in a less complex, faster manner. Tether has a 1-to-1 ratio with the U.S. dollar for valuation.

Consequently, the altcoin is less speculative than popular cryptocurrencies like Bitcoin and Ethereum. For crypto investors who want to avoid the wild swings that are part and parcel of this space, Tether should be right up your alley as the next crypto to explode.

Monero (XMR)

XMR logoSource: Wit Olszewski / Shutterstock.com

Monero is very popular these days because it has the ability to anonymize users. Ring signatures and stealth addresses help in accomplishing this task. Due to the technology at its disposal, the privacy-focused Monero cab hides the identities of the sender and the receiver.

The only problem some might have with Monero’s approach is that privacy isn’t really an option. It enforces anonymity at a fundamental level. That may rub certain people the wrong way.

But there are several people out there who love this feature and want to protect their identity online since this was one of the main initial benefits of blockchain technology — to remain completely anonymous.

Algorand (ALGO-USD)

Algorand logo in light blue against a simple dark-colored, futuristic-looking backgroundSource: shutterstock.com/Shizume

Algorand investors have enjoyed blockbuster returns following an announcement that El Salvador would establish blockchain infrastructure using Algorand.

Italian computer scientist Silvio Micali is the man behind the platform. ALGO-USD has positioned itself as a competitor to Ethereum. One of the biggest things going for it is the proof-of-stake proofing algorithm, which is less energy-intensive to run. One of the main criticisms against Bitcoin is that it consumers a lot of energy. Through using a proof-of-stake mechanism, ALGO-USD sets itself apart from the rest of the altcoins out there.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

More From InvestorPlace

The post Looking for the Next Big Crypto to Explode in 2021? Try These 5 Coins appeared first on InvestorPlace.

Continue Reading

Articles

Evergrande weighing on Asian markets

China equities bashed on return to work Wall Street had a very noisy and choppy session overnight, buffeted by an impending FOMC, Evergrande, slowing growth…

Share this article:

China equities bashed on return to work

Wall Street had a very noisy and choppy session overnight, buffeted by an impending FOMC, Evergrande, slowing growth prospects, Covid-19, the US debt ceiling, and the future of the Democrat’s $3.5 trillion spending bill; chose your crisis. When the dust settled, a few day traders were probably licking wounds, but the main indexes closed not too far from where they finished the day before. The S&P 500 closed just 0.08% lower, the Nasdaq rose 0.22% in a tech-safety play, and the Dow Jones edged 0.14% lower. US futures are almost unchanged in Asia, erring to the heavy side.

 

The return of Mainland China markets hasn’t been a happy one. Despite a CNY 100 bio liquidity injection from the PBOC, and news that a local Evergrande unit will make a local bond coupon payment tomorrow, equity markets have headed south. Evergrande is due to also make an offshore coupon payment tomorrow and there has been no word on whether this will happen, and that could be keeping local equities subdued. The Shanghai Composite has fallen by 1.90% today as Evergrande contagion fears take centre stage. The CSI 300 is 1.10% lower while Hong Kong markets are closed for a public holiday.

The negative day for China has spilled over to regional markets. The Nikkei 225 is 0.50% lower after the BOJ left policy unchanged. After two days of holidays, South Korea remains closed, but Taipei is playing catchup after a return from holidays, the TAIEX slumping by 2.20%. Singapore is 0.60% lower while Kuala Lumpur is down 0.40% while Jakarta is bucking the trend, helped by rebounding commodity and energy prices, rising 0.90%.

Rebounds in iron ore and copper, along with surging energy prices has lifted Australian markets by mid-session, after a slow start. The Evergrande local unit coupon payment news has also lifted sentiment, although Australian markets, seizing on any snippet of good news could be getting ahead of themselves, as no news has emerged on whether an offshore coupon, also due tomorrow, will be paid. Nevertheless, Australian markets are now solidly in the green, the ASX 200 jumping higher by 0.70%, and the All Ordinaries rallying 0.90%.

Given the neutral finish by Wall Street, and the negative tone pervading Asia, and with the FOMC to come later today, European stocks are likely to adopt a cautious stance this afternoon, remaining vulnerable to negative headlines emanating from China. The increasing noise surrounding the gas price rally is also likely to dampen spirits in today’s session.

Continue Reading

Precious Metals

Selloff Puts All Eyes on the Fed

Looking for a dovish Fed … the crypto sector suffers another drawdown … will gold ever register a pulse?

Tomorrow, all eyes are on the Fed.
It’s…

Share this article:

Looking for a dovish Fed … the crypto sector suffers another drawdown … will gold ever register a pulse?

Tomorrow, all eyes are on the Fed.

It’s the most anticipated Fed announcement in recent memory. Investors are expecting hints about the timing and scope of a Fed bond-purchase tapering.

Economists surveyed by Bloomberg expect the November meeting is when we’ll get a formal announcement on the Fed reducing its monthly purchases of $80B of Treasurys and $40B mortgage-backed securities.

Of the 52 economists surveyed, two-thirds expect November. More than half of them believe the taper will begin in December.

But as we noted in yesterday’s Digest, Louis Navellier believes we’ll get more information tomorrow, which will calm markets.

From Louis’ Platinum Growth Club Flash Alert yesterday:

I am expecting a dovish statement.

I am expecting the Fed will clarify that they will begin tapering.

But it’s probably just going to be a mini-taper, not a big one. And so, I think it will be interpreted as dovish, and the market will rally.

***Louis isn’t the only one expecting a dovish Fed

Our hypergrowth expert, Luke Lango, also expects the Fed will tell the market what it wants to hear, resulting in a late-week rebound.

Interestingly, Luke points toward yesterday’s volatility as a clear signal to Federal Reserve Chairman, Jay Powell.

From Luke’s latest update of Hypergrowth Investing:

The Fed is slated to meet today and tomorrow to discuss monetary policy. Many Fed members have voiced a hawkish tone ahead of that meeting, advocating for some tightening via a tapering of asset purchases.

Wall Street is braced for this – investors are largely “OK” with a gradual and smooth taper.

But Wall Street doesn’t want anything more, and they’re letting the Fed know by selling stocks ahead of the meeting, basically saying: “Hey, Fed, if you tighten more aggressively than you’ve signaled, the stock market’s going to collapse, and the whole world is going to blame you.”

It’s a warning shot.

And it’ll work.

Luke believes that today and tomorrow could be choppy in the markets. But tomorrow at 2 p.m. ET, Powell will take the stage. Luke anticipates he will announce a taper, while delivering it in an ultra-dovish tone – pleasing the markets.

That will lead to a market rebound to close out the week.

***If you follow the money-flows, U.S. investors are also expecting this “Wall-Street-friendly” Fed

From Seeking Alpha:

The market is seeing a “monster reallocation cash-to-stocks as tax redistribution threat recedes & Fed expected to remain Wall St-friendly (liquidity easiest since Jul’07),” Michael Hartnett, BofA chief investment strategist, wrote in the “Flow Show” note on Friday.

How big is this reallocation?

Last week, investors dumped cash in favor of stocks at the greatest pace of the entire year. The outflows from money market funds registered $43.5 billion, the biggest of 2021, according to Refinitiv Lipper.

It also marked the largest inflow into U.S. large-cap funds ever. It was $28.3 billion, to be exact. Growth funds saw nearly $7 billion, with small-caps getting $4.2 billion.

So, the results of tomorrow’s FOMC meeting could be a market-mover. We’ll let you know how it goes here in the Digest.

***Stocks aren’t the only asset class in the red recently – the crypto sector has been suffering a sell-off

It feels like bitcoin and the crypto sector had finally begun turning the corner after the 50%+ drop from the spring. That was, until a flash crash from two weeks ago ushered in more weakness.

Yesterday’s multi-asset class selloff hit crypto as well.

From Forbes:

Cryptocurrency prices plunged Monday morning during a widespread market sell-off sparked by concerns of a potentially catastrophic debt default in China, pushing many of the world’s largest digital currencies to their lowest levels in more than a month.

The value of the world’s cryptocurrencies plunged to a low of less than $1.9 trillion by 8:45 a.m. EDT on Monday, nearly 11% less than 24 hours prior and reflecting a loss of more than $250 billion, according to crypto-data website CoinMarketCap.

Pullbacks like this are never fun to sit through, but they’re not unusual. So, it’s critical to avoid interpreting “temporary weakness” as a sign of “impending doom.” This is just standard crypto volatility.

Luke, who is also our crypto specialist, echoed this same point in his Saturday update of Ultimate Crypto. And this was before yesterday’s sector weakness.

After highlighting bullish adoption news about several holdings in the Ultimate Crypto portfolio, Luke wrote:

That’s not to say we won’t get a big sell-off here soon. We may.

That’s what cryptos do – from time to time, they plunge.

But it is to say that consumer adoption is progressing at breakneck speed, and consumer adoption will ultimately determine the long-term price trajectory of cryptos.

That’s why we’re more bullish than ever, and why we will be huge buyers on any future plunges in cryptos.

By the way, if you missed it, last week, Luke sat down with fellow crypto expert, Charlie Shrem, to discuss the huge opportunities in the crypto sector.

In short, they believe a new massive crypto bull market is forming, and certain cryptos are likely to go parabolic. Weakness like we’re seeing right now is offering investors greatly-discounted entry prices to top-tier cryptos.

If you’ve been looking for a time to begin a crypto portfolio, this is a good opportunity. To watch the free replay of Luke and Charlie’s event, just click here.

***Meanwhile, even with stocks and cryptos down and anxieties up, gold still can’t catch a bid

There was a time when steep selloffs in stocks and other asset classes would frighten investors, resulting in huge inflows into the “chaos hedge” of gold.

Though that time may return, it’s not here right now.

Yesterday, as all three major stock indexes dropped more than 2%, gold yawned, barely inching higher (and silver actually lost 0.6%).

Our macro specialist and the editor of Investment Report, Eric Fry, put a poetic spin on this…

The yellow metal is barely registering a pulse at the moment. Most of the wax figures inside Madame Tussauds museum seem more vibrant and lifelike.

But the thing about gold is it tends to come back from the grave at the exact moment that dejected investors finally leave it for dead.

Back to Eric:

After gold’s decade-long dormancy from 1991 to 2001, for example, it suddenly sprung to life and soared 500% over the ensuing decade.

More recently, the gold price drifted 40% lower during the seven-year span from 2011 to 2018. But then it revived once again and rallied as much as 70% from its 2018 low.

That rally was probably the first phase of what will become a much bigger move. Now that the gold price has spent more than a year going nowhere, it has gained plenty of rest for its next major move higher.

Frankly, the pessimism has grown so intense that gold is beginning to resemble a dream-trade for a contrarian investor.

Back to Eric to put some numbers on this:

Most folks want little to do with gold at the moment.

On a net basis, investors have withdrawn more than $15 billion from the SPDR Gold Shares ETF (GLD) during the last 12 months. That’s the most rapid and sizable retreat from this gold fund since 2013.

To summarize today’s approximate investor attitudes, they like stocks, adore cryptos, and feel sorry for gold and silver.

“Both metals are suffering from a complete lack of investor interest,” griped Ole Hansen, head of commodity strategy at Saxo Bank A/S, during Thursday’s abrupt selloff.

But remember, there are two macro factors in gold’s corner – inflation and soaring government debt.

Eric notes that the 12-month federal deficit stands at $2.8 trillion…which is a whopping 12.5% of U.S. GDP. Meanwhile, the six-month average U.S. inflation rate is hitting levels not seen in 30 years.

Back to Eric:

Historically, great, big governments deficits, coupled with great, big inflation readings, trigger great, big gold rallies.

Perhaps this time is different. But there’s a reason why many seasoned investors say that “This time is different” is the most expensive phrase in finance.

Because it is…

We’ll keep checking for a pulse here in the Digest and will let you know.

See you back here tomorrow for the post-mortem on the Fed announcement.

Have a good evening,

Jeff Remsburg

The post Selloff Puts All Eyes on the Fed appeared first on InvestorPlace.

Continue Reading

Trending