The Mining Play

FWIW - Focus on Global Economy*

*Favorite Funds now renamed Focus on Global Economy
I found it necessary to rename this thread to hopefully give it a broader more relevant and informative focus.

Wish I’d picked IGE up much earlier. Intended as a long term hold:

Top 10 Holdings AS OF 12/31/2021

43.55%

of 119 total

CVX Chevron Corp 9.82%

XOM Exxon Mobil Corp 9.66%

COP ConocoPhillips 4.43%

ENB:CA Enbridge Inc 4.10%

FCX Freeport-McMoRan Inc 3.17%

EOG EOG Resources Inc 2.69%

CNQ:CA Canadian Natural Resources Ltd 2.58%

NEM Newmont Corp 2.56%

TRP:CA TC Energy Corp 2.36%

SLB Schlumberger Ltd 2.18%

Does anyone here have favorite Funds suitable for IRA accounts for long term?

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I had originally had a focus on the delays in rebalancing of reserve currencies in the IMF and the role of SDRs. Too many rabbit holes there! While important, other factors play a much larger role of what is occurring globally. It’s apparent inflation is destroying the purchasing power of our dollar at home. Hoping to largely keep US and local politics out of this conversation and look to what measures individuals can take to preserve their purchasing power in this thread as it develops. It’s a fairly long article that I felt needed to be shown in it’s entirety so as not to lose any of the pertinent information. The KWN recent article titled “Russia, The Financial War And The War In The Gold Market” actually made me realize I wasn’t aware of SCO, and only tangentially of the role BRICS nations were playing in the demise of our currency. The KWN article is even longer, but the section titled “How durable will a commodity-based trade currency be?” led to me looking at what I present below.
I found this article of particular interest to start the conversation:

SCO And BRICS: Decoding. List Of SCO And BRICS Countries

The unstable situation in the world dictates the urgent need for countries to find new partners and support. In a situation where economic and political instability has become hypothetical, the creation of alliances has become an indispensable condition for survival. The associations of the SCO and the BRICS, the decipherment of which will be given below, work with the same goal - the creation of a balance of power in the world.

THE ERA OF INTEGRATION

The 21st century is considered to be the era of integration and unification. That is why the associations of the SCO and the BRICS have entered into a struggle for the balance of power in the world. The Shanghai Cooperation Organization, or SCO, has nothing to do with NATO or with ASEAN, a regular security meeting. Coalition belongs to an intermediate position. A certain Eurasian space is being formed, which intends to actively defend its interests before the West. America keeps its hand on the pulse and is actively engaged in several alliances at the same time:

  • Transatlantic trade association.
  • The trans-Pacific trade pact between Asia and America.

Russia and China are left out. And if we take into account aggressive sanctions against Russia on the part of the West, then the significance of the SCO acquires a completely different meaning. The role of BRICS in the world economy is no less justified.

THE ROLE OF THE SCO AND THE BRICS

The SCO structure includes Russia and China, Kazakhstan and Kyrgyzstan, Tajikistan and Uzbekistan. In the near future, the tandem is planned to be replenished by India and Pakistan. According to the Russian government, it is this association that will allow solving a number of topical domestic problems. The representation of China is perfectly aware of the situation in the country, since it itself is experiencing inconveniences because of sanctions from America and Europe. The restrictions imposed in 1989 were only partially lifted.

The BRICS goal, which includes Russia and China, Brazil and India, South Africa, is moving forward. The abbreviation is formed from the English abbreviation BRICS - the first letters of the grouping states (Brazil, Russia, India, China, South Africa). The economic potential of these countries is very high, since they own half of world production. On the dominance of the world market, according to representatives of organizations, it does not go. The issue of associations affects only the topic of complete independence from Europe and America.

The forecasters say that in the near future the SCO and the BRICS, the decoding of which is given above, will significantly push the world economic elite due to rich natural resources, a strong production base and developed agriculture. It’s also worth adding a good intellectual potential.

SCO STRUCTURE

The Shanghai Cooperation Organization is governed by the Council of Heads of State, which it includes. Any decisions are taken within the framework of summits held annually in the territory of one of the member countries of the association. This year, the SCO summit and BRICS will be held in June in Ufa. The conference will discuss issues of multilateral cooperation. The council plans to approve the budget and establish relations with other international associations. The executive body of the association is the secretariat. One of the permanent bodies is the RATS in Tashkent, the decisive antiterrorist task.

A BIT FROM THE HISTORY OF BRICS

BRICS includes five countries, which are classified as new industrial ones. They are characterized not only by powerful but also rapidly developing economies, active influence on regional and global markets. Each of the members of the association is a member of the G-20. Already by 2013, the total GDP of countries reached a figure of 16.039 trillion dollars. The first BRICS summit, whose countries are able to influence the economy, caused the dollar to fall, as the heads of state raised the issue of creating a single stable and predictable currency. The association encourages commercial and political, cultural cooperation between peoples. Moreover, today the member countries of the union are taking active steps to establish their own financial institution, which would be able to compose worthy competition to the West.

ECONOMIC COOPERATION

The associations of the SCO and the BRICS, the decoding of which indicates that they include countries with great potential, signed a framework agreement. Its goal is to improve the productivity of economic partnership. Back in 2004, an agreement was signed on the formation of a free trade zone , which largely balanced the flow of goods in the regions.

In 2005, member countries of the groups agreed on joint projects in the oil and gas segment, rational distribution of water resources and carbon stocks. In order to finance joint activities, the Interbank Council was formed.

Each SCO summit and BRICS brings good results and foretells global changes. So, in 2009, representatives of China received a proposal to provide $ 10 billion to partner countries for active development, which allowed them to support their economy in the conditions of the then global crisis.

RELATIONS WITH THE WEST

In the opinion of the media and many world experts, it is the SCO and the BRICS in the first place that should be worthy of competition not only for America, but for NATO as well. This will avoid a number of conflicts that could open the way for the US to the economies of states that border China and Russia. Representatives of associations actively monitor the situation on the world stage. Despite the total lack of open criticism towards America in general and Washington in particular, the summits often discuss problems of this category. For example, in 2005, the issue of finding the US military on the territory of Uzbekistan and Kyrgyzstan was actively raised. The SCO asked the US to establish clear deadlines for the withdrawal of troops from the territory of the member countries of the association. Moreover, the closure of the K-2 airbase was stimulated.

THE BRICS STATES

The countries-members of BRICS occupy the positions of the leading and actively developing markets of the world. The main interest is caused by India, Brazil and China. In the next five years their significance will only increase. States such as Indonesia and South Africa are potential candidates for joining the association. The main priorities set by the member countries of the alliance are not the reduction of production costs, but the formation of a material base that should stimulate long-term success in the markets of states. The SCO and BRICS volunteers take an active part in research and in analysis to make the partnership even more fruitful.

DEVELOPMENT BANK - A REVOLUTION IN THE GLOBAL ECONOMY

For many years now, the unification of the SCO and the BRICS, the decoding of which shows that they are defending their interests before the West, are aimed at creating a single financial institution. In connection with the situation in the world in 2014-2015, this area of partnership has become more active. The project, which began in 2009, based on existing factors, is finally coming to its logical conclusion. The Development Bank has already been approved. Moreover, numerous issues have been resolved: the management has been selected, the contribution to the financial institution from all participating countries has been determined, the location of the organization and its first headquarters has been determined. At the moment, the structure is actively filled with representatives of each of the member states of the association. The SCO and BRICS countries, whose list is very limited, are actively tuned in this issue. On the agenda were secondary tasks, in particular regarding the right to participate in the financial institutions of states that are not part of the structure of associations. Priority is given to a minimum of bureaucratic processes for the most accelerated procedure for consideration and acceptance of investment projects. If the plan succeeds, the world markets will be radically changed.

(SCO and BRICS: decoding. List of SCO and BRICS countries)

There are quite a few articles reporting the June virtual Summit meeting:

How durable will a commodity-based trade currency be?
June 24, 2022
In a move to strengthen cooperation and promote economic recovery after the COVID-19 pandemic, BRICS countries agreed this week during the bloc’s virtual Summit to launch the BRICS Business Forum, which they regard as an effective tool to achieve the association’s goals.

“We support comprehensive, close, practical, and inclusive cooperation and stand ready to actively contribute to the strengths of the business community to this end,” said the initiative, which sees emerging economies and developing countries as “important forces in driving global economic recovery.”

Regarding health cooperation, the initiative calls for solidarity to address the challenges generated by COVID-19 through measures such as strengthening research on vaccines and promoting exchanges of knowledge on traditional medicine.

The initiative also expressed its support for an open, transparent, fair, inclusive, non-discriminatory, and law-based multilateral trading system, and called on BRICS countries to increase trade cooperation to strengthen transparency in the business environment, while deepening exchanges in e-commerce, intellectual property rights, and other trade issues at all levels.

The BRICS Forum also called for promoting global sustainable development and accelerating the ecological transition, embracing the digital economy, and strengthening the resilience of industrial and supply chains.

Chinese President Xi Jinping, who hosted the virtual 14th BRICS Summit, also called on BRICS countries to safeguard global peace and tranquility, persist in development, and unleash the potential and vitality of cooperation.

“Standing at this historic crossroads, we should review the path already traveled and always keep in mind why we BRICS countries started up, and at the same time work together for a shared future of a high-quality partnership that is more comprehensive, closer, practical and inclusive, with a view to jointly launching a new march of BRICS cooperation,” said Xi.

Xi also called on BRICS countries to persist in standing in solidarity and safeguarding global peace and tranquility. He added BRICS countries should support each other in matters touching their respective core interests, practice true multilateralism, uphold justice, fairness, and solidarity, and reject hegemony, thuggery, and division.

“This year, we have held the Foreign Ministers’ Meeting and the Senior National Security Representatives’ Meeting, deepened cooperation in the areas such as counter-terrorism and cybersecurity, and promoted coordination in the UN and other multilateral frameworks, speaking out for justice on the international stage,” he said.

Xi also underlined the Initiative for Global Security (ISG). “The Chinese side is willing to work together with BRICS partners to make the ISG translate into concrete actions and tangible results, thus injecting stability and positive energy into the world.”

“So far this year, we have launched the BRICS Initiative on Strengthening Supply Chain Cooperation and the Initiative on Trade and Investment for Sustainable Development, adopted the Agreement on Cooperation and Mutual Administrative Assistance in Customs Matters and the Strategy for Cooperation on Food Security, and held for the first time the High-Level Meeting on Climate Change,” Xi also pointed out.

BRICS countries must take full advantage of these new platforms to promote the connectivity of industrial and supply chains, and jointly respond to challenges in areas such as poverty alleviation, agriculture, energy, and logistics, among others, Xi insisted, as he highlighted the fact that BRICS countries, instead of being a closed club or a small exclusive circle, are a big family of mutual support and a win-win cooperation partnership.

“This year, for the first time, we have had other countries as guests at the BRICS Foreign Ministers’ Meeting. The newly established BRICS Vaccine Research and Development Center has an unequivocal commitment to openness. ”Step by step, we have carried out various ‘BRICS Plus’ activities in the areas such as scientific-technological innovation, people-to-people exchange, and sustainable development, thus engaging new cooperation platforms of emerging markets and developing countries,“ he added.

”Those who know how to seize the opportunities of the new economy such as big data and artificial intelligence will rightly take the pulse of our time,“ Xi also underscored.

”This year, we have accelerated the construction of the Xiamen Innovation Center of the BRICS New Industrial Revolution Partnership, convened the Forum on Industrial Internet Development and Digital Manufacturing and the Forum on Macro data for Sustainable Development, achieved the Digital Economy Partnership Framework, launched the Manufacturing Industry Digitalization Cooperation Initiative, and established the network of technology transfer centers and the mechanism for aerospace cooperation,“ Xi said.

Meanwhile, Russian President Vladimir Putin said that ”the countries of our bloc are deepening cooperation on the entire range of issues on the global and regional agenda. And every year the authority of the BRICS and its influence on the global stage is steadily increasing.“

Putin also pointed out that this is an objective process since the five countries have truly great economic, scientific, technological, and human potential. They can effectively work together to ensure international stability and security, sustainable growth and prosperity, and the well-being of their people.

The Russian leader also pinpointed that the transnational nature of the challenges and threats the international community faces demands a search for collective responses with the bloc’s active participation. ”We have repeatedly said that only together we can solve such problems as conflict resolution, combating terrorism, organized crime, including the criminal use of new technologies, combating climate change, and the spread of dangerous infections.”
(BRICS Summit sees new role for the bloc in a changing world — MercoPress)

This is a very interesting interview about the changing times we live in. It highlights gold’s past and future role. I was not familiar with Frank Giustra or the extraordinary success he has had in the mining industry. Also, I do not currently have a position in ARIS as I was not aware of it, although his new company is being presented. It’s an interview I think you will enjoy and find extremely informative.

( Gold's Role in a Changing World Order: Finance Titan Frank Giustra - YouTube)
Introduction 00:00
Spanish conquistador Francisco Pizarro’s famous chest 00:41
Frank’s hyperinflation experience in Argentina in the 1970s 03:44
How inflation happens and Frank’s economic outlook 06:51
Protecting wealth in stagflation 13:03
Calling the bottom in the 2000 gold market 17:17
Building a new gold miner which became the world’s largest 20:37
Frank and Ian Telfer on building Goldcorp and working together 24:04
Their new startup, Aris Gold (TSX:ARIS) 26:24
Frank’s thesis for a global monetary reset 27:40
Why China is like a “Big black hole” for gold 28:40
Gold’s relevance in a digital world 32:50
Different types of gold investments 36:59
What kept the Giustra’s together during crisis 42:33
Chef Frank shares his love for food 43:21

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WHY GOLD IS NOT PERFORMING
If you haven’t been staying informed on global currencies and FED interest rate strategies Mr. Gentile has a very easy to follow explanation of what is going on. This is not a repeat of the 1970s!
Click on link to view video:
(This Is Why Gold Is Not Performing... YET! - Michael Gentile - YouTube)

This is what happens when the FED Fund rate increases the interest rate too high ( the rate that services the debt). This graphic view from the video above is accompanied by Michael’s clear explanation of his US Debt Thesis - basically he’s saying as (FED FUND rate high X the National Debt) a crisis follows in every case! The dot com bubble, the housing crisis, the 2018 mini crash …

There will be stocks besides the precious metal (PM) miners that do very well, but many of the very profitable cash flow positive PM miners with huge proven reserve deposits will go up in a parabolic fashion. Also selective spec stocks. There’s a lot that can be commented and speculated here. Expect volatility!

(Spot Gold)

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A bit surprised there has been no interest or insights posted by others here in this space. This is something to pay attention to if you value your investments, IMO. Surprised no one else has mentioned that paper trades of precious metals in China may be ending. Will this catapult the global price of gold and silver in other currencies sooner than later?

Deadline: August 15. Chinese Merchants Bank say bye-bye to paper PM trading.

After the new account opening of paper PM banning, commercial banks will close the door of buying paper PM on August 15. China Merchants Bank asked customers to clear positions before October 17.