David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Gold CEO Blasts 'Hysterical' Fund Managers Chasing Quick Cash

    This article by James Attwood for Bloomberg may be of interest to subscribers. Here is a section:

    “I’m cautioning people not to become too obsessed with stripping the industry out of its cash, and not allowing strengthened balanced sheets to be built and investments in the future,” he said. “Whether it’s exploration or deal making, it’s got to create value and you can’t create value as a mining executive if you don’t have support from the fund managers.”

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    Colombia Coffee Exports Halted by Protests, Federation Says

    This note may be of interest to subscribers. Here is a section:  

    Coffee isn’t moving to ports, including the main Buenaventura shipping hub, because of nationwide protests and road blockades, Roberto Velez, CEO at the Colombian Federation of Coffee Growers says by phone from Bogota.

    The Colombian situation is fueling gains for prices in New York, which have reached the highest since 2017
    Protests that started last week against a tax reform bill continued even after it was withdrawn, Velez says, adding any solution would have to come from the central government
    There’s also concern that Covid-19 rates are increasing in coffee areas
    Coffee pickers needed for the harvest are already on the farms
    NOTE: Colombia Protests Slow Coffee Shipments to Ports, Importer Says
    2021 Coffee Output Seen at 14M Bags: Trade Group

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    Chinese vaccines sweep much of the world, despite concerns

    This article from the Associated Press may be of interest to subscribers. Here is a section:

    China’s vaccine diplomacy campaign has been a surprising success: It has pledged roughly half a billion doses of its vaccines to more than 45 countries, according to a country-by-country tally by The Associated Press. With just four of China’s many vaccine makers claiming they are able to produce at least 2.6 billion doses this year, a large part of the world’s population will end up inoculated not with the fancy Western vaccines boasting headline-grabbing efficacy rates, but with China’s humble, traditionally made shots.

    Amid a dearth of public data on China’s vaccines, hesitations over their efficacy and safety are still pervasive in the countries depending on them, along with concerns about what China might want in return for deliveries. Nonetheless, inoculations with Chinese vaccines already have begun in more than 25 countries, and the Chinese shots have been delivered to another 11, according to the AP tally, based on independent reporting in those countries along with government and company announcements.

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    Yellen Says Spending May Spur 'Modest' Interest-Rate Increases

    This article may be of interest to subscribers. Here is a section:

    “It may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat,” Yellen, a former Federal Reserve chair, said in an interview with the Atlantic recorded Monday that was broadcast on the web on Tuesday. “It could cause some very modest increases in interest rates.”

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    Cautious German Savers Brave the Stock Market

    This article from the Wall Street Journal may be of interest to subscribers. Here is a section: 

    Michael Schacht, 70 years old, is a typical German saver. Risk-averse, the clothing-shop owner kept the equivalent of $300,000 in a local bank in a small town near Hamburg.

    Then, earlier this year, Mr. Schacht’s bank told him it wanted to charge him a negative 0.5% interest rate to hold his money.

    Furious, Mr. Schacht did something he never considered: He put it all in the market. His portfolio includes investments in stocks and corporate bonds from Europe and elsewhere through funds, plus gold and silver.

    “I don’t want to make lots of money, I just want a low-risk investment that provides a reasonable return on capital, like 2%, 4%,” Mr. Schacht said. “That has always been realistic in the past.”

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    Email of the day on central bank digital currencies:

    I have been a subscriber to your service for over 20 years, probably closer to 30 years. I am very satisfied with your service, and am one of your great admirers. I was surprised though how certain you sounded on the future of money and digital currency on Friday's audio. Do you really think that the current monetary system will change drastically and that digital currency will be the main currency in the future? What will be your guess as to how long will it take to have that kind of change? Once again thanks a lot for the excellent service. 

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