Vince Lanci: Resource Competition Driving Uranium Gold Silver | Arcadia Economics

➡Arcadia Economics discusses a report by BCA Research on the new Uranium Bull Market. The report highlights that energy security concerns are driving investments in nuclear power, not environmental reasons. It also mentions that nuclear energy is increasingly seen as crucial for achieving carbon reduction targets. The report also points out that underinvestment in uranium mining has led to a market imbalance, pushing prices higher, and presents lucrative opportunities in uranium-related assets.

➡ Bank of America has made a strong case for investing in uranium and other metals. However, financial services are struggling to effectively use artificial intelligence (AI), mainly due to concerns about job losses. In other news, the Biden administration is taking steps against tax evasion in digital currency markets, and Apple’s mixed reality headset is now available in China at a higher price than in the U.S. Lastly, there are concerns about a potential AI bubble, similar to the dot-com bubble, which could lead to job losses when it bursts.

BCA says energy security concerns are driving investments in nuclear power. That’s not environmental. That’s mercantilism. We need to secure our own supply chain for energy. That’s a divided world taking care of itself. And so when you have divided buyers competing, you actually, mercantilism actually creates more intense competition for natural resources. Boom! You buy uranium. Welcome to the Morning Markets & Metals with Vince Lanci, where each day he brings you the precious metals in financial news to get you ready for your day. And now, here’s Vince. Good morning, everyone. I hope you had a good weekend.

I’m Vince Lancey and today’s Market Rundown. We’ll be looking at a report by BCA Research entitled The New Uranium Bull Market. And we’ve looked at several reports over the last six months. And this one, at first glance, seemed late to the party. And so while we were reading it, we intended to dismiss it as being accurate and good as BCA’s research is, but not as far ahead of the curve as we would have liked it to be. However, we were happy to be disappointed because there were some insights in there about Japan, about China, that we had not seen anywhere else.

And it was more geopolitically balanced compared to the other reports we had seen, which were more focused on, say, good reports, don’t get me wrong, focused on, say, sprouts and their aspect of it or individual companies and the supply chain domestically. But this one covers a lot of the geopolitical implications and how that intertwines with the clean energy push. So it’s a very good report. And we have a write-up on that. We’ll be sharing with you at the bottom here and a slide deck of some pictures. We have some nice excerpts on that.

All right, and we’ll also be going through market driving news. Let’s start with the market prices. I’ll leave the gold chart up there for you on that. The dollar is down 18. Ten-year yields are up one at 441.40. And long bonds, it’s not working. It’s not hurting me yet, but it’s not working. S&P 500 is up one handle. The VIX is $12.97. Gold is up $9. And impressive $9, if you look at the chart, in my opinion. Silver is up 13.14 cents at 29.27. Lagging, I want to see that pull ahead for me to be long gold on a speculative play.

Copper is 441. 7, spot 70, up 4.5 cents. So maybe the bottom isn’t for copper. WTI is up 50 cents at 82.30. Dutton natural gas is 247, down 2 cents. Bitcoin is down 45, having a good weekend, I should say, trading at 62.640. And change, Ethereum, $34.58. Up as well, pacing each other, taking turns, it seems. Grains are mixed. Soy is up a penny, $11.48. Corn is $3.97, down a penny. And wheat is on the screen now. $5.76 up 2 cents. I think the planting season is over. And that’s going to make things a little bit more stable.

It doesn’t stop the geopolitical things going on with Russian demand. But there you have it. So what do I mean by the gold chart? Recapping. A buyer entered in here. There’s more than one buyer. There’s more than one star. But the buyer that I care about entered in here. Identified here. Came back, came back, came back. Market threw in the towel. Some people sold it in the hall here. Market rallied. Another buyer came in here. Not the same buyer, similar MO, but not the same buyer. But the buyer came back here. So this buyer is not filled.

That’s a big buyer. It’s a big buyer, like the buyer that we had in February at a higher level. And the market went up back above where this guy bought before. He wasn’t there this time, right? He wasn’t there this time. Boom. Comes right off and doesn’t even get to test where the buyer is. So there’s buying in here again. So this is probably the same guy. And now here we are at this second level that there was a buyer the first time, but he kind of got filled. Now we’re above it.

So is he buying? No, he doesn’t have to be buying, but there’s no more selling here. Okay. So we get above this little wick here, which is the end of the month, the quad candle that I talked about. We get above this and we can run to that. Am I predicting? No, but the quad candle was important. Why was the quad candle important? Quad candle. End of the day, end of the week, end of the month. I’m sorry. End of the day. Listen to me. End of the week, end of the month, end of the quarter, end of the half year.

Why was it important? Because if people are going to play, uh, to window dress, they’re going to play on that day and the funds did not play. And that’s a reflection of the fact that a lot of them are not long right now. The banks did not play and dress it lower. And that’s more of a reflection. So the unchanged day was actually more on the day. The behavior of the day was bearish because the market started strong and finished weak. But on the bigger picture, it was bullish. And, um, let’s see how bullish, uh, over the rest of the week.

I think you might have some macro discretionary buying come in again. We do have a big data week. All right. So moving on to the main events, a new Uranium bull market, the premium section at the bottom is Uranium bull market. And we want to give you a little, uh, insight into that in the commentary section front page, heart net, the inflation blame game. This is the heart net flow show report walkthrough. Interestingly, this one this week is tied. Uh, he’s not political at all. Okay. He’s just, um, he’s, he’s a macro analyst and he’s noting that he thinks inflation will actually back off and this will be bullish for bonds and indirectly it’ll be bullish for gold as well, believe it or not.

Um, but he’s also noting that, uh, the politics of inflation have made it very difficult for either candidate to, uh, talk about anything but blaming the other guy for inflation Sunday, two hour conversation Sunday CFTC discussion, not for the faint of heart. CBTC is very dangerous. That’s, uh, an opinion analysis that I did and, uh, I stand by it. Let’s go to a Uranium. All right. A new Uranium bull market. So BCA research put out a report on the 28th and we have it, and we’ve reviewed it. And as I said, it’s, it’s, it’s a, it’s entitled a new bull market, a new Uranium bull market.

And the report, uh, I thought would be like the other reports I had read, which were very good, but narrow. This one is broader and, uh, with a lot more charts, uh, that, uh, make its point as opposed to just, you know, colorful trucks. So anyway, here’s some key insights that we pulled out of it. These are our words, geopolitical influence, uh, is one of the key insights or, or insights is probably not the right word. Key drivers, actually geopolitical influence energy, energy, BCA says energy security concerns are driving investments in nuclear power.

That’s not environmental. That’s mercantilism. We need to secure our own supply chain for energy. That’s a divided world taking care of itself. And so when you have divided buyers competing, you have you actually mercantilism actually creates, uh, more intense competition for natural resources. Boom. You buy Uranium environmental push. Nuclear energy is increasingly viewed as essential for achieving carbon reduction targets. Now that made to a deeply, uh, entrenched Uranium personally, like, yeah, no kidding. And, and the, the adoption of that, the readoption that is growing so much so that you’re going to start seeing nuclear reactors.

Look, Japan was the reason nuclear went down. Okay. That was like the final straw. And Japan is buying Uranium now supply constraints under investment in Uranium mining has led to a market imbalance, pushing prices higher. Those minds apparently don’t come on, uh, line as fast as you would think. And so under investment in Uranium mining, et cetera, et cetera. So there’s miners probably would want to buy as well, which is why, um, you would focus on, uh, you would focus on, uh, Tamiko, uh, which is vertically integrated, right? Right. So they’re beginning to end consuming their own Uranium and they add value to the supply chain.

Anyway, that’s just one of the, uh, companies that I, one of the only companies that I actually know about investment opportunities, the current market conditions present lucrative opportunities in Uranium related assets. All right. There you go. Here’s the executive summary, plus the contents of what that, what are in the report. Uh, we sent that to founders, uh, late last week, and we’re going to have a nice write up for you today. You can read that, uh, we have previously, I alluded to previous reports, the case for Sprots and Uranium is made.

That’s actually a write up out of grants, uh, Geez, like five months ago. And it was really, really good. And, uh, we, uh, uh, we broke it down for subscribers and premium and Uranium bank makes massive bullish bullish case. That was bank of America. And that came out in October of 23. And you know, BOA has been ahead of the curve on a lot of metals and Uranium’s a metal as far as I’m concerned. Um, they, they wrote about Uranium and they were right. They wrote about silver and they were right. They wrote about gold before silver and they were right.

And they’ve written about copper, but, uh, but not as strongly. All right. Uh, that continues that bottom state, you know, stay with us and you’ll be able to see that market news. Okay. The market news. I want to move to the market news because, uh, a lot of different themes are in here and financial services are failing. This is AI related. Okay. Financial services are failing to implement artificial intelligence successfully. Euro European FinTech executives have claimed. Well, first of all, first of all, your past failed to implement AI successfully. They’re just not kicking it into high gear.

Now, there are two reasons for that. One is, and this is a big one. It’s, it’s more evident in companies that actually kind of care about their employees. You’re just going to fire everyone with this stuff, your customer service, your mid office at the financial level gone. Okay. And they really can’t just en masse fire people yet, at least not until after the election. There’s a lot of room for fat to be cut if AI is implemented properly. Now, in terms of helping the top line, increase growth in sales, not going to happen yet.

Not going to happen for a while. Look, when, when new technology comes out that can help an industry that we all go, Oh geez, this is going to make this that much cheaper. What, what, what these companies do is they look at it as a cost reducer first. Right. And they say, can I reduce cost? Yes, but I’ll have to fire 5,000 people. Okay. Great for the stock price ban for the PR in an election year. So they hold off on firing people. And then they add it as this, as this, you know, cool thing, because they have to have AI in their stock price.

Right. So, so here’s our new AI customer service and you see it all over the place. Now it’s like, you know, it’s the.com concept all over again. And really all it is is the fancy customer service thing. And that runs into a wall. And then I think the AI bubble busts or bursts and the companies that are relying on it for marquee value end up losing value and AI loses value. And it probably gets overly, overly sold. And then they start saying, okay, let’s use it for the right reason. And they just start relentlessly firing people and replacing them with it.

You know, people don’t get fired until profit margins come in and profit margins haven’t come in yet. What I’m saying here is the, this, this is a sign that the AI bubble is that the, the current AI situation is a bubble and that it will shrink kind of like the.com, the bets.com pets.com. But the next level people are just going to get fired. The Biden, then moving on the Biden administration took a long delayed step against tax evasion in digital currency markets. Okay. So the IRS wants to make money. Big banks plan to pay out more to shareholders after passing regulators, annual stress tests or this week expect dividends to go up at the banking level.

Markets probably already discounting that. I’m not telling you anything. That’s not in the market already. Apple’s mixed reality headset began deliveries in China with a retail price of roughly 18% higher than in the U S many of the most popular posts about the device on Chinese social media platform. Weibo on Friday focused on the hashtag. Is it worth paying for the China version of vision pro? Okay. I don’t know much about this, uh, but I’m just going to, you know, comment on the, on the bigger picture when I see it began deliveries in China with a retail price, 18% higher than in the U S because that’s where the money is.

People are willing to spend more. Okay. China’s market is opening whether they like it or not. Geopolitics, a mass official said there is no progress. Move on a ramble, the presidential election runoff. I don’t know what that means, uh, but I’m paying attention to it. Russian president who held a Russian security council meeting on the moratorium on the deployment of intermediate range missiles and said Russia needs to resume production of short and medium range missiles. If Ukraine is going to attack within their borders to stop their missiles from being shot, they’re going to shoot more missiles intermediate.

They’re going to go even deeper into Russia. So it’s kind of like an encroachment all sides type of concept. Look, this war is helping Russia in a war. You get a spree decor, uh, at least in the domestic level, you get patriotism and you get manufacturing together again. And the USSR is manufacturing was military and then they make cars. I’m not saying they were good cars, but the point is this is all helping Russia. It’s not hurting it. On that note, Russia took control of a settlement in the shoe me, I guess, uh, of shoe me in Ukraine while Russian forces took over spearing.

And I’m not going to try and say it in Ukraine’s Don asks region. U S military raised the alert level of several bases in Europe to its second highest level, according to the times of Israel, citing multiple American media outlets. Okay. Once upon a time, deck this week, the big day is, uh, non-farm payrolls. The first, these days are actually important too. You know, the fed chair, uh, speeches is in Portugal and on Wednesday we have the fed’s June meeting. However, today’s data and tomorrow’s data, I don’t have it in here, but you have PMIs and right now the marketplace is looking at, do we focus on inflation or do we focus on economy and these two things and trying to get the fed to ease and inflation is on track to where they want it to go.

It’s not there, but it’s on track. So now the question is, uh, recession, soft landing, hard landing, that type of stuff. So they’ll be looking more at industrial production, PMIs and housing starts. And that’s it. There’s a new Uranium bull market. Uh, you can read that, uh, in your email. I’m Vince. Let’s take a quick look at the markets again. There you go. We’re close. Let’s go to the hourly on gold. We’re close. We’re close means we get above it. Someone’s going to sell and I’ll be made wrong. Right. But no, I think, I think if we get above this, it’s an hourly candle and we can close above this one, an hourly candle, then this should not be a problem.

And if it is a problem, well, then once we get into these, in between these, when we get into these two lines again, expect us to test this area again. Okay. And one of the founders and gold fix on Sunday noted that there was a, what’s the word he used? There was a brick wall or a wall or call it a floor, uh, and night at 2297 last week. And that’s related to this. I personally think, and I said it then, and I’ll say it here, this was bullion bank buying ahead of central bank buying.

Can’t be any clearer than that. Have a great day, everyone. Well, thanks for tuning into today’s markets and metals with Vince. Show is brought to you each day by miles, Franklin precious metals, who we encourage you to consider your next gold or silver purchase or sale miles. Franklin has pricing. That’s among the best in the industry and most products and Arcadia is proud to be a licensed miles, Franklin representative and happy to help whenever you have questions or want to place an order where this week’s silver special is retail. Preciosi silver kilo bars for only $1.79 over spot.

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