Time is to learn what AIIB is all about. Alasdair Mcleod explains significance of AIIB - Asian Infrastructure Investment Bank. DE-dollarisation continues, China is crystallising the new engine for Asian growth with its huge population and now access to the Russian natural resources. What does infrastructure development mean for the metals? We can find the answer in the latest Chinese acquisitions already.
Metals: China Fast-Tracks $1 Trillion in Projects to Spur Growth.
"When will the Chinese make their next big move? Financial expert Alasdair Macleod says, "Their style is not to go in and disrupt markets. They act very, very quietly. You would hardly know they are there. This is certainly how they have handled their acquisition of gold. I don't think they would want to be blamed for destabilizing western capital markets. What could happen is if we set a chain of events going that would lead to our own demise, then the Chinese would protect themselves. There is so little gold left in western vaults now . . . anything that changes the really sunny outlook for bonds equities and all the rest of it . . . and for people to realize that people don't have any gold, that could drive the price sharply higher because there is not enough gold for us to buy. The stocks are very, very low, and anybody who comes into the market is going to have to bid it up to get it."
Gold: Is US Dollar Parabolic Move Over?
"This is what is called the parabolic move in US Dollar. It has "coincided" with the collapse in Oil and other commodities. You can appreciate the magnitude of this move and the total devastation is has caused in the commodity markets. Is it over now? Everybody is still bullish on dollar, but FED has already scaled back expectations on the rate hike. Immediately we had the dollar flash crash, which is better seen on the daily chart below. Strong dollar is not very good for the recovering US economy, actually FED is in the corner of 18 Trillion debt, All-Time-High markets and the brave idea to hike the rates. Half of the traders maybe have never even seen rising rates in their lives before. What will happen with the market on fire once the oxygen will be going out? I would say that this "removal of patient does not mean that we are impatient" will lead to the very gradual couple of hikes the most. Once the market realise it, this parabolic move will end in the crash. The higher it goes the harder it will go down. When will it happen? I guess that nobody knows, but at least we have the hesitation now, which could be enough for the margin calls on this the most crowded trade after another 5% move down. Read more."TNR Gold: Shotgun Gold Project Development in Alaska.
"Nova Gold has published its new presentation for PDAC 2015. Now you can find more information about Alaska as mining jurisdiction and Donlin Gold type of Gold deposit. TNR Gold owns 100% of Shotgun Gold project in Alaska, which has very similar geology to Donlin Gold, according to Greg Johnson - one of the founders of Nova Gold. Read more."
Disclosure: The author is long TRRXF, MUX.