Goldman Predicts Copper to hit $5 next year

Goldman Sachs predicts copper will rise to $5.39 next year and keep on rising in the following years. The average copper price of all forecasters is $4/lb. 

Lithium Demand to Surpass Supply

Lithium demand is expected to surpass lithium supply in 2022-2024. This deficit will lead to an increase in lithium price. 

Lithium is also much better than hydrogen from an energy efficiency perspective.

Cobalt Vs. Lithium

Both cobalt and lithium are battery metals.

 

Sprott Holdings Update November 2021

Sprott filed its new holdings.

Sprott bought: FSM (which crashed recently), Nucor, a bunch of uranium miners.

Sprott sold: RIO, XOM, FCM, Platinum, a bunch of silver miners.

Carbon Taxes to Benefit Copper

Higher carbon taxes will push up the substitution curve and benefit copper vs aluminium. 

China Credit Impulse is Booming

 China is booming.

China Power Consumption Stable in October 2021

China is slowing down a bit. 

Iron Ore Inventories Are Rising

Iron ore has huge problems.

 

EIA and OPEC Forecast Oil To Plunge

The EIA forecasts oil to plummet. 

And OPEC expects an oil surplus in Q1 2022.

SMM Survey Believes Copper Is The Best Metal

The SMM surey believes copper has the most upside. 

$1 Trillion Infrastructure Bill Passed

The $1 trillion infrastructure bill just passed. This will benefit commodities like copper.

—$40b bridges

—$70b roads
—$11b safety
—$39b transit
—$66b Amtrak/rail
—$7.5b e-vehicle chargers
—$5b clean buses
—$17b ports
—$25b airports
—$50b water resilience
—$55b drinking water
—$65b broadband

—$65b electric grid
—$21b enviro remediation
—$73b power/clean energy

Roads and bridges: Headlining the 2,702-page bill's spending, roughly $110 billion of new funds would go toward improving the nation's roads and bridges, and investments in other major transportation programs.

Public transit: The package also includes the largest-ever federal investment in public transit, allotting $39 billion to modernize systems, improve access for the elderly and people with disabilities, and repair more than 24,000 buses, 5,000 rail cars and thousands of miles of train tracks.

Amtrak: The legislation marks the largest investment in passenger rail since the creation of Amtrak 50 years ago, with $66 billion earmarked for high-speed rail, safety improvements, Amtrak grants and to modernize the rail route connecting Washington, D.C., to Boston.

Broadband internet: Tacking on to billions authorized by last year's American Rescue Plan, the infrastructure bill includes $65 billion to bolster the country's broadband infrastructure and help ensure every American has access to high-speed internet, with one in four households expected to be eligible for a $30-per-month subsidy to pay for internet.

Electric grid: Though many clean-energy measures were cut from the bill to satisfy spending-weary lawmakers, a $65 billion investment will help upgrade the nation's electricity grid, with thousands of miles of new transmission lines and funds for environmentally friendly smart-grid technology.

Electric cars, buses and ferries: In addition to $7.5 billion for the nation's first network of electric-vehicle chargers along highway corridors, lawmakers have shored up $5 billion for zero-emission buses (including thousands of electric school buses) and $2.5 billion for ferries.

Clean drinking water: Following high-profile water-supply crises plaguing cities like Flint, Michigan, the legislation includes a provision for $55 billion to replace all the nation's lead pipes and service lines, representing the largest investment in clean drinking water ever.

Great rivers and lakes: Among the bill's $48 billion for water infrastructure improvements, about $1 billion is slated to go toward the Great Lakes Restoration Initiative, a sweeping clean-up measure targeting toxic hot spots—or areas of heavy industrial pollution—around the Great Lakes region.

Airports: More than $25 billion has been allocated to help modernize America's airports—funds the Airports Council International says will help tackle more than $115 billion worth of project backlogs.

Road safety: The deal invests $11 billion in transportation safety programs, including a new program to help states and localities reduce crashes and fatalities in their communities, particularly among cyclists and pedestrians.

Fed Tapering

The Fed started tapering. This should start the bull market in gold since the whole narrative changes. Sell the news event.

 

Gold Forecaster Index: Rate Hikes Are Good For Gold

When the Fed hikes rates, gold actually goes up. 

Gold M&A Cycle Starting

Gold is on the verge of breaking out with the M&A cycle.