One of the most amazing collection of assets in | Australian Markets

Three belongings you need to know right now…

1) Volatility is back!

One fund supervisor got here out this week and mentioned that is essentially the most unstable earnings season he’s seen in 22 years.

It’s sure been a humdinger. Some of my positions have soared…and a few tanked.

When volatility goes greater, one consolation is understanding what sort of money flows are coming within the door.

And there ain’t no higher sector proper now than gold. Living proof is West African Assets [ASX:WAF].

I’m highlighting this one as a result of they launched their 2024 numbers this morning.

They produced 206,000 ounces of gold. It value them about US$1250 per ounce to get it out of the ground. Their promoting price was about double this.

Cue AU$246 million in candy, candy revenue. The stock hit an all-time high yesterday.

Even higher for them, they’ve one other mine within the works, which suggests in future years they’ll be producing more gold for more revenue if right now’s costs maintain or go greater.

WAF comes with high sovereign risk. However there’s no doubt it’s minting money on the present gold price.

In fact, gold might come down. However proper now, you possibly can shrug off the volatility considerations as a result of there’s a lot money flowing via the gold sector.

The market will likely be supportive till one thing comes alongside to derail the case for gold, and gold shares.

That doesn’t appear like occurring anytime quickly.

Gold shares proceed to be a sturdy sector and demonstrated that again this week when a lot else is promoting down.

Obtained gold publicity? It is best to.

2) There’s another excuse gold stands out…

Whereas gold is urgent in the direction of new highs, another commodities are slumping. Coal costs are at four-year lows, stories Bloomberg.

Oil is falling. Iron ore is back below US$100 a tonne.

I made the case a few weeks in the past that iron ore could possibly be a contrarian trade to take if it might keep pushing up. The thought is petering out fast, if not useless already.

There simply isn’t the explosive combine of elements in play that you just need for a large trade in any of these.

I’m not saying there’s no long-term alternative right here. However you need the persistence of a saint to contemplate them.

Take lithium.

It has all of the indicators of a commodity bear market. That’s low costs, mines shutting down and growth plans deferred.

In idea, these elements are sowing the seed for the following bull run.

I tabled the concept late final yr to start out looking ahead to a turnaround. (And I meant watch, not do something.)

Now take a look at a chart of Pilbara Minerals [ASX:PLS]…

Sluggish Street to Nowhere

Not a lot to get enthusiastic about there.

Now, it might be that the case for lithium comes back. In reality, I’m sure it would sooner or later.

However timing is all the pieces in commodities…and lithium’s time shouldn’t be but.

3) Tesla isn’t serving to the case for lithium both…

This yr I’ve discovered myself with an sudden interest. It’s following Tesla, regardless of probably not needing to.

Tesla stock surged within the wake of Donald Trump’s election victory. CEO Elon Musk has the ear of the new President.

What he doesn’t have is clients lining up to buy his vehicles in the identical means as he did a few years in the past. Gross sales are falling in Europe.

The fashions are wanting considerably stale. And China’s BYD affords comparable options at a decrease price level.

That is all problematic when your stock trades on a P/E of 130x.

Nevertheless, Tesla has a second ‘Trump’ card to play. It’s the rollout of the Optimus robot, due subsequent yr. This could possibly be an extraordinary second division for Tesla.

What’s even more unbelievable is Elon Musk has that in play, PLUS X.com and SpaceX…two giant, separate corporations.

It’s one of essentially the most superb, promising assortment of property in world historical past.

Whereas Tesla is giving Musk some complications, his SpaceX firm could possibly be one of the most important IPOs ever.

Even more superb, it might take Musk towards mining space, presumably together with his own robots.

It’s a privilege to see it play out in real-time.

Don’t neglect our latest service, Altucher’s Funding Community Australia is overlaying all the pieces you need to learn about Musk’s industrial and innovation pioneering…together with the corporations that might benefit from his each transfer.

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Test it out right here.

Greatest needs,

Callum Newman,
Editor, Small-Cap Programs and Australian Small-Cap Investigator

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Silver has been underperforming gold over the past yr.

Gold has rallied 20% since Could final yr however silver stays on the similar degree it was trading at then.

I feel we’re close to seeing silver play some catch-up.

The technical image is compelling as I’ve been exhibiting you in latest Closing Bells.

Silver is in a long-term uptrend. If the price can head above US$35 quickly the chances of a sharp rally to the promote zone at US$40-45 will increase.

Essentially, silver is seeing demand outstrip provide with vault shares worldwide in retreat over the past couple of years.

Rising industrial demand — particularly in photo voltaic panels, EVs, and electronics — continues to outpace provide, with world silver manufacturing struggling to keep up.

Regards,

Murray Dawes,
Editor, Retirement Dealer and Fats Tail Microcaps