Copper Demand from Electric Vehicles to be Nine Times Higher by 2027 — Study/International Copper Association: While most cars use internal combustion engines that require up to 23 kg of copper, the IDTechEX research found that a hybrid electric vehicle uses 40 kg of copper, a plug-in hybrid electric vehicle uses 60 kg, a battery electric vehicle 83 kg, and a hybrid electric bus 89 kg. A battery-powered electric bus can use 224–369 kg of copper, depending on the size of battery used.
“The demand for electric vehicles is forecast to increase significantly over the next ten years as technology improves, the price gap with petrol cars is closed and more electric chargers are deployed,” said Franco Gonzalez, Senior Technology Analyst at IDTechEx, who co-authored the study. “Our research predicts this increase will raise copper demand for electric cars and buses from 185,000 tonnes in 2017 to 1.74 million tonnes in 2027. That’s a nine-fold increase. On top of this, each electric vehicle charger will add 0.7 kg of copper and if they are fast chargers, they can add up to 8 kg of copper each.”
Friday Trivia Question: The oldest gold treasure in the world was found in what country?
Gold Flat on Fed Week but Sentiment Remains Bullish at IPMI Conference / Kitco News: gold, from the IPMI Conference: Speaking with Kitco News from the International Precious Metals Institute’s annual conference, RBC’s George Gero and Kitco’s Peter Hug said $1,300 gold is plausible under the current economic and political environment. “$1,300 gold is very much on the table, especially after options expiration later this month,” Gero said. However, Hug said he would expect a more gradual move higher for the yellow metal. “I want to see a lot more technical momentum, you’re going to see a staged rally, not a shoot up in gold, depending on the news bites we get.”
Argentina Passes Mining Act Expected to Create 125,000 New Jobs/Mining.com: The new agreement, President Mauricio Macri said, will create about 125,000 new mining jobs across the country. It is also expected to boost foreign investment in the sector to $25 billion by 2025, on top of the $3 billion already confirmed for the 2017-18 period. Since taking office in late 2015, Macri has adopted measures to revive the country’s mining industry. One of the first ones was eliminating a 5% tax on mining and energy companies in February last year. He also revoked a prohibition on foreign mining companies sending profits made in Argentina out of the country. Experts estimate there is some $400 billion worth of untapped mineral resources underground in Argentina.
Tanzania Says Barrick to Pay Money Owed by Acacia to Government/Cecilia Jamasmie: Barrick, which holds a 63.9% interest in Acacia, said chairman John Thornton met President John Magufuli to “discuss issues” pertaining to the Tanzania-focused miner, and the country’s current ban on mineral concentrate exports.
“The meeting was constructive and open, with the parties agreeing to enter into negotiations to seek a resolution that is in the best interests of all stakeholders, including Tanzania, Barrick, and Acacia,” the world’s largest gold producer said in a brief statement, without mention of possible payments.
Pete: My friend at Dillion Gage, Walter Pehowich, tells us about the red-hot palladium and how it was covered at the IPMI conference.
Gold Recovers A Little Ground / Dillon Gage: The palladium backwardation was a topic at many meetings. One concern raised was a number of open interest contracts seen in the most active CME contract. The September palladium open interest today stands at 34,152 contracts open. In ounces, the equates to 3,415,200 ounces. Currently held in the all the CME Warehouses combined shows only a total of 41,950 ounces of which 13,671 ounces registered and 28,278 eligible. Historically, the majority of this open interest will be rolled or liquidated but as you can see it will not take much for the market to smell blood and react in a way that could be a major concern for the market and the exchange alike. The backwardation in palladium continues as the market is quoted today by some as minus 25 minus 10. if you wanted to lease palladium today the current lease rate is quoted by some to be at 15 percent or more. So, the tightness of physical ingot continues in London and Zurich
Gold Can't Withstand Yellen's Inflation Comments, Gives Up Daily Gains/Kitco News: The gold market was able to resist a fairly optimistic Federal monetary policy statement, but was unable to hold its daily gains after what appeared to be hawkish comments from the Fed Chair Janet Yellen.
While gold has been steadily giving up its early morning gains as the market digested the latest Federal Reserve statement and economic projections, the yellow metal attracted renewed selling pressure as Yellen shrugged off weak inflation concerns.
Gold prices fell to session lows following Yellen’s hawkish inflation comments. August gold futures last traded at $1,260 an ounce, down 0.68% on the day and ended up breaking about $33 dollars from the highs so far.
Peter Thomas: Investing in gold, silver, copper, Platinum, Palladium, and other precious metals - his interview with David Moadel here.