3 Major Things in Metals
Brics, JPM convictions, and a nice metals rally
Good morning.
This is being composed on a cell phone1.
As such it will be more like one an old school (thorough) market overview and situational analysis for employees to start their own day.
(There will be pertinent links and comments in a follow up post as well as stories and reports we’ve reviewed for you all)
Here we go….
Yesterday saw 3 major events coincide in precious metals.
Brics, JPM convictions, and a nice metals rally with Silver up 4%
BRICS:
The first was expected. The Brics summit began in earnest. There were some interesting comments from members that helped to fill in blanks on what their plans are for International trade in the community. But no fireworks yet.
Except for the wagner guys plane being shot down.. yikes… whoever did it cia/putin. It certainly sent a message.
BRICS Comment:
the brics meeting thus far is going as we assumed it would. This is a showcase for them to show the west they indeed get along and are progressing quite nicely without western chaperoning involvement.
The currency concept is being worked on more now, and we are very confident they can implement it immediately in limited fashion among 3 countries (Russia, China, Saudi Arabia) if they choose to.
That implementation at the basic level is: monetary value for traded goods will be offset with each other. Your wheat for my oil…
Then, the pricing unit will be in a local currency (all relatively soft pegged to the yuan, which will be soft pegged to gold) and the balance will be settled in gold, a gold NFT on their platform in some form.
What we describe above is also (we believe) already happening since 2017. There certainly could be more than that, but this is what we can say has been worked out thus far. This is the minimum.
Anything more than this must be tested right now. Specifics, while important, are not known. But it is happening in more than abstraction.
JPM CONVICTIONS:
The second event, while not a complete surprise was pleasantly timed nonetheless.
We are speaking of the court decision to convict JPM traders on the manipulation counts charged with almost 8 years ago.
(We made some notes on this for today, but due to tech issues, will repost our twitter comments along with the zerohedge post link covering the event on the follow up.)
Suffice to say: this event is somewhat autobiographical for myself.
Me and my colleagues were not only victims of this, but I was personally engaged by experts close to the case to help understand the mechanism of spoofing and manipulation as was/is commonly done in the metals space. I’ve not spoken on it for good reason…