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Dollar’s days as world’s most important currency are numbered – Berkeley economics professor

Currencies will soon coexist on a more ‘equal footing’ in international markets, and the US dollar will be forced to share prominence with the Chinese yuan and the EU’s euro, according to global currency systems expert Barry Eichengreen.

In his book How Global Currencies Work: Past, Present, and Future, he wrote that reserve currences can and do coexist. The book, co-authored by European Central Bank economists Arnaud Mehl and Livia Chițu, was published this month

The economists used new evidence of central bank reserves from the 1910s to early 1970s, mainly focusing on the interwar period of the 1920s and 1930s. They have challenged the traditional ‘winner-take-all’ view that there can only be one dominant reserve currency at a time.

“In the period between the wars, it seems the British pound and the US dollar shared reserve currency status more or less equally, depending on the year,” said Eichengreen and his colleagues. They found that “before the First World War, even though sterling was the most important currency, the French franc and German mark were internationally significant, too.”

According to the economists, “From this vantage point, it is the second half of the 20th century that is the anomaly, when an absence of alternatives allowed the dollar to come closer to monopolizing this international currency role.”

Eichengreen, who’s an economics professor at the University of California, Berkeley, said the dollar’s days as the dominant reserve currency will end “sooner rather than later” and the speed of the shift might depend on the actions of US President Donald Trump.

He said some experts suggest the Chinese yuan is destined to lead in the future.

“The traditional view is that international currency status is a winner-take-all game, that there’s room on the global stage for only one true international currency. The argument was that network effects are so strong they create a natural monopoly because it pays to use the same currency in cross-border transactions that everybody else has used,” Eichengreen told the Quartz.

However, the “new view is that financial technology has moved on and network effects are no longer so strong.”

“It’s easier to switch between currencies. It’s similar to how operating systems for personal electronics have transformed. Everyone doesn’t have to use Windows anymore,” said the economist.

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India roars back as one of world’s fastest growing economies

Japanese brokerage Nomura projects the Indian economy is on the cusp of a cyclical recovery with 7.5 percent growth rate to be registered in 2018.
The country’s GDP bottomed-out in the second quarter of 2017 at 5.7 percent year-on-year, rising to 6.3 percent in the third quarter, according to the brokerage.

 

“We remain bullish on India’s macroeconomic outlook,” Nomura said in its Asia Economic Outlook.

The report highlights that Indian authorities have continued undertaking necessary structural reforms along with prudent macro policies, which led to the gradual recovery of the world’s sixth-largest economy.

At the same time, the brokerage says the tangible benefits of those reforms are currently hard to pinpoint, but they will definitely have a positive impact and boost growth. Higher crude oil prices and state election results are the main risks, according to Nomura.

The strong growth would be backed by the positive effects of bank recapitalization, a positive demonetization program and a positive fiscal impulse with Goods and Services Tax-oriented (GST) supply disruptions to be normalized, the report says.

Nomura analysts expect small and medium enterprises to boost production, exporters to benefit from the stronger global export upcycle with import substitution to reverse and growth to jumpstart.

“We expect cash-intensive sectors such as manufacturing, construction, real estate, trade, transport, hotels, and communications to benefit most,” the brokerage added.

According to the less optimistic outlook released by the UN earlier this week, India’s economy will see a 7.4 percent growth in 2019 with the performance of private investment to remain a significant macroeconomic concern.

Amid quite a rapid recovery and robust growth India may quickly become the world’s fourth-largest economy next year, topping both Britain and France, according to the International Monetary Fund.

Source

The Electric Car Revolution Is Happening Now And Faster Than Expected

Accelerating sales of plug-in vehicles will drive outsized demand for copper, cobalt and nickel, according to the mining giant.

Fast accelerating sales of electric car will lead to surging demand for copper, cobalt and nickel, and sooner than the markets currently expect Glencore ( GLCNF) CEO Ivan Glasenberg said on Tuesday.

“The electric vehicle revolution is happening and its impact is likely to be felt faster than expected,” Ivan Glasenberg told a mining conference in Barcelona. “Virtually all automotive players are now accelerating their investment in (and) adoption of electric vehicle technologies.”

Glencore shares traded Tuesday afternoon at 293.25 pence ($3.78), up over 1%.

European sales of battery powered cars climbed a record 38% in the first quarter of 2017, the European Automobile Manufacturers’ Association reported last week. Sales in the US leapt 49% over the same period, according to figures collated by Bloomberg.

Both of those increase could yet be dwarfed by sales in China and India, which have both outlined ambitious plans to promote electric car sales. China said in April it wants alternative fuel vehicle to account for at least one-fifth of all sales by 2025. India is drafting a plan to transform all vehicle on its road to electric engines by 2032.

Global electric vehicle sales could reach 52 million by 2025, according to figures collated from cumulative sales targets of different government. That compares to sale of about 774,000 in 2016, according to EVvolumes.com, a website that tracks plug in car sales.

The increase in electric vehicle use will “have an outsize impact on metals markets,” Glasenberg predicted. Glencore quoted figures produced by BNP Paribas analysts that tipped 373,000 tons of new demand for copper and 40,000 tons of increased demand for nickel by 2020. That demand could rise to 1.65 million tons of copper and 210,000 tons of nickel by 2025.

Electric cars require significantly more copper, nickel and cobolt than their petrol powered cousins. For example an electric car requires about 38 kg of copper for its batteries, another 100kg for the engine itself and about 20kg for each charging point. By comparison, a luxury petrol car uses about 28kg of copper, according to the European Copper Institute.

The increased demand is not being matched by increased output of key metals, according to Glencore. Increases in the global copper resource base, which measures the total amount of copper contained in un-mined deposits flat lined in 2015 and 2016, while copper supplies are on course to peak in 2018 before falling, unless there is an upswing in new mine investment and new deposit discoveries, said the mining group.

“Higher commodities prices are require to incentivize reinvestment to offset a declining resource and aging asset base,” said Glasenberg.

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NEWS: Margaux Resources Announces Significant Expansion of its Kootenay Arc Project Holdings

Margaux Resources Ltd. (TSXV: MRL) (OTCQB: MARFF) (“Margaux” or the “Company”) is pleased to announce that it has acquired additional claims to expand the Company’s Kootenay Arc project holdings in southeastern British Columbia. In addition, the Company has received high-grade gold grab sample results from the Sheep Creek and Bayonne properties.

Key Highlights

  • 1,670 hectares of newly acquired mineral claims; orogenic gold mineralization favourable area
  • High-grade gold sample at Sheep Creek including up to 15.5 g/t Au
  • 13.0 g/t Au grab sample returned from Bayonne
  • New vein discovered at Bayonne

The new acquisitions include 13 mineral claims, totalling 1,670 hectares (an 8% increase in Margaux’s mineral claims holdings), which were attained from a third party for staking costs. The claims are contiguous to the Company’s Sheep Creek, Ore Hill and Jersey properties, as shown on the below map. Margaux Resources’ Kootenay Arc project now includes over 24,500 hectares of mineral tenure.

“2017 is proving to be an exceptional year for exploration on the Company’s Kootenay Arc Project. This year’s efforts have produced significant results and contributed greatly to the identification and delineation of the mineralizing systems,” stated Linda Caron, Vice President of Exploration for Margaux Resources. “The newly acquired claims encompass the extension of the favourable geological setting that hosts the orogenic gold mineralization revealed to date, are highly prospective for additional discoveries and are a further step in the consolidation of a dominant land package.”

Additionally, Margaux has received rock sample results from its fall 2017 work program, as listed in the table below. At Sheep Creek, sampling confirmed high grade gold values from the Motherlode and Bluestone veins, including grab sample values of up to 15.5 g/t Au. And at Bayonne, the sampling returned values of up to 13.0 g/t Au, which represents a newly discovered vein, located 150 m east of the eastern-most point on the Bayonne Main vein.

Property Target Au (g/t) Ag(ppm)
Sheep Creek Bluestone 8.51 8.6
Sheep Creek Bluestone 7.59 0.9
Sheep Creek Motherlode 9.23 1.8
Sheep Creek Motherlode 15.50 1.7
Bayonne North Ridge 13.00 22.2

 

Finally, Margaux is excited to announce that the fall 2017 work program is in its last phase of drilling. The Company is currently drilling at its Sheep Creek gold property, with results expected early in 2018.

Tyler Rice, Margaux’s President and CEO stated “We’re pleased with the on-going progress of the drilling on our Sheep Creek gold property and eagerly look forward to the assay results in the new year. The surface grab samples continue to impress us with their high-grade nature and provide multiple drilling targets for 2018.”

To view an enhanced version of Margaux Resources Kootenay Arc Project, please visit:
http://ift.tt/2Acs8XM

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NEWS: Northern Empire Approves New 15,000 Meter Drill Program

Northern Empire Resources Corp. (TSXV: NM) (the “Company” or “Northern Empire”) today announced that it approved a new 15,000 meter drill program and has recommenced drilling at the Sterling Gold Project, located in Nye County, Nevada.

The Company plans to drill approximately 50 holes, totaling 15,000 meters in a program that will be completed in early summer of 2018. Drilling will be focused on infill and expansion of the Sterling Mine, Daisy, Secret Pass and SNA deposits, as well as testing high priority exploration targets. Drilling will be completed with both a core and reverse circulation rigs.

Drilling Targets

Exploration targets were generated through the Company’s work on the project since it was acquired in mid-2017, which entailed geophysical and hyperspectral imagery as well as mapping and sampling, and indicated the potential for a Carlin-type gold discovery.

A map of planned drilling at the Sterling Mine can be found here: http://ift.tt/2Bb2nKr

A map of planned drilling at the Crown Gold Project can be found here: http://ift.tt/2BF3vY8

Sterling Mine

Drilling for the remainder of 2017 is focused around the Sterling Mine, where on December 4, 2017, the Company announced results which included 10.00 meters grading 14.59 g/t Au, 9.05 meters of 8.66 g/t Au and 7.59 meters of 8.25 g/t Au. Additional results, including, 12.19 meters of 8.37 g/t Au were announced on November 2, 2017.

Crown Gold Project

SNA Drilling Map:http://ift.tt/2Bb2oOv

Secret Pass Drilling Map:http://ift.tt/2BGDVSg

Daisy Drilling Map:http://ift.tt/2Bb2rtF

In early 2018, drilling efforts will be shifted to the Crown Gold Project, located in the northern part of the Sterling Gold Project. Drilling will begin on the SNA deposit area where the Company has identified the potential for a large Carlin-type deposit. This work will be targeting north-south structures exiting the nearby Motherlode pit, and where historic drill holes such as ML088, drilled on the Company’s property, returned 10.67 meters grading 4.13 g/t Au starting at 60.96 meters and 28.96 meters grading 1.76 g/t Au starting at 100.58 meters.

Drilling will also be completed at the Daisy and Secret Pass deposits with the goals of upgrading and expanding the resources, collecting metallurgical samples, and testing exploration concepts. On September 18 and October 4, 2017, the Company announced drill results for Daisy and Secret Pass, highlighted by 47.24 meter of 1.47 g/t Au at Daisy and 82.30 meters grading 1.25 g/t Au at Secret Pass.

The Company has begun permitting efforts for additional drilling on the Crown Gold Project to be completed later in 2018, which will provide sufficient data for updating resource estimates on all known deposits. In addition, new targets continue to be generated on the 116-square kilometer land package.

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