METALS

A Day in the life of FOREX trading

Time to look at Vanadium

This Mystery Metal Surges 550%

Vanadium is more stable, more reliable and longer lasting than lithium – and it could become the go-to metal for the $19 billion energy storage market.

And one company is positioning itself as the first – and perhaps only – vanadium mine in the United States.

Lithium has been one of the most enduring stories in the market.

Tesla’s Giga-factory has made lithium a household word among investors…As increasing demand for lithium-ion batteries, in the US and around the globe, is driving a huge increase in lithium prices. Yet, despite the headlines, there’s a “new” metal on the block… an alternative to lithium few investors know about – yet.   

It’s more stable and longer lasting than lithium… and thanks to changes happening in the worlds power grids… it’s expected to see a massive increase in demand.

It’s element 23 on the periodic table – Vanadium.

Vanadium is a chemical element with symbol V and atomic number 23. It is a hard, silvery-grey, ductile, and malleable transition metal. The elemental metal is rarely found in nature, but once isolated artificially, the formation of an oxide layer somewhat stabilizes the free metal against further oxidation.



And this little-known metal could be replacing lithium as the go-to resource for the growing $19 billion energy storage market. Vanadium is proving itself vastly superior to lithium for storing massive amounts of electricity.

One small America company – United Battery Metals (OTCBB: UBMCF CSE: UBM) – is positioning itself right now to become the first US-based producer of this all-important metal.

The timing for United Battery Metals’ couldn’t be better. 90% of the world’s vanadium is used in steel manufacturing – a small amount of vanadium can double the strength of the alloy…

And demand for vanadium around the globe is sending prices skyrocketing.


The price of the metal has soared 550% since September 2016.

In fact, as noted in The Economist, vanadium prices are out-pacing other metals, such as copper, nickel and cobalt.


And United Battery Metals is positioning itself perfectly to become the first US-based miner of this new super-metal.

United Battery Metals Corp’s flagship property – the Wray Mesa project – is located within the vanadium-rich Uravan Mineral Belt in the Colorado Plateau in western most Colorado and eastern Utah. Current resource estimates put the company’s vanadium deposits at 1,626,000 lbs. And that estimate is expected to become even larger.

The company has just announced additional acquisitions: … properties that more than triple the size of their holdings.

The original Wray Mesa property included 45 claims, totaling 900 acres. The newly-acquired claims include more than 90 claims in Utah and an additional 17 claims in Colorado… Bringing the total land package to more than 3,000 acres, all of it 100% held by UBM.

There are several reasons why vanadium should continue out-performing for the foreseeable future…And why United Battery Metals should be seriously considered for any investor looking to capitalize on THE future of energy and power around the globe.

The Vanadium Redox Flow Battery – or VRFB – is changing the face of renewable energy.


The market for advance energy storage systems is expected to hit $19 billion by 2022. Spending on renewable energy resources – like wind and solar – is growing by leaps and bounds.

The Wall Street Journal reported:

“In 2016, the latest year for which data is available, about $297 billion was spent on renewables—more than twice the $143 billion spent on new nuclear, coal, gas and fuel oil power plants, according to the IEA.

The Paris-based organization projects renewables will make up 56% of net generating capacity added through 2025.”

Data from Bloomberg’s New Energy Outlook shows the world will invest $10.2 trillion in new power generating technology between now and 2040…

As the IEA reported, power generated by renewable energy could represent more than half of all electrical generation by 2025. And this growth is likely to continue for decades.

All of this non-traditional, renewable energy is creating a massive demand for energy storage.

Demand for Grid-Scale Batteries is Increasing Exponentially

According to Bloomberg, “The global energy storage market will double six times between 2016 and 2030, rising to a total of 125 gigawatts/305 gigawatt-hours.”

This chart shows the massive increase in energy storage requirements around the globe.

Global cumulative storage deployments



China – home to most of the world’s supply of vanadium – has built the world’s largest vanadium flow battery gigafactory in Dalian… when completed, it will churn out massively powerful batteries, in the 200MW-800MWh range.



As global demand for energy storage continues to increase – demand for safe, reliable battery solutions will put even more pressure on an already tight vanadium market.

And, as demand increases – United Battery Metals’ mines will be the first, and perhaps only, US-source for vanadium in the US.

When it comes to large-scale grid storage… vanadium batteries are vastly superior to any lithium-based battery system in the market.

The lifespan for lithium ion batteries is too short for grid-scale energy storage.  Lithium batteries degrade significantly over a short amount of time.  And that degradation can be accelerated by temperature conditions. Too hot or too cold, and the battery loses capacity faster. Its life-span is also affected by how often it goes through the discharge/recharge cycle. It’s been reported that the storage capacity of lithium ion cells can drop by half after only 1,200-1,500 cycles.

Vanadium-based systems can operate virtually forever. The low-cost, rechargeable electrolyte used in vanadium systems never wears out – and the plastic tanks that contain the electrolyte will last for decades. The vanadium redox flow batteries can cycle through discharging and recharging more than 10,000 times – and still maintain 90% of its original capacity over 20 years.

Vanadium flow batteries can be charged, and discharged, simultaneously.  

GOLD

Gold slips for eighth straight session, dollar off early 2017 highs

Gold futures tilted lower in American trade on track for the longest losing streak since October 2016, while the dollar index backed off January 2017 highs, in a day that lacks major data releases from the US. 

Gold futures due in December shed 0.08% to $1,202.50 an ounce.

The Federal Reserve voted at the November 7-8 meeting to maintain interest rates at below 2.25% as expected by market analysts, while vowing to carry on the path of policy tightening.  

 Gold price succeeded to touch the correctional bullish channel’s support line that appears on the chart, showing some slight bullish bias now to approach testing the first key resistance 1208.40, which urges caution from the upcoming trading, as breaching this level followed by 1223.00 will push the price to resume the correctional bullish track that its targets begin at 1238.30 and extend to 1262.51 after breaching the previous level.

Until now, we will continue to suggest the bearish trend in the upcoming sessions, depending on the negative effect of the previously completed double top pattern, waiting to break 1200.00 to confirm opening the way to head towards our next target at 1180.00.

Gold price touches the channel’s support – Analysis - 13-11-2018


Gold price succeeded to touch the correctional bullish channel’s support line that appears on the chart, showing some slight bullish bias now to approach testing the first key resistance 1208.40, which urges caution from the upcoming trading, as breaching this level followed by 1223.00 will push the pice to resume the correctional bullish track that its targets begin at 1238.30 and extend to 1262.51 after breaching the previous level.

Until now, we will continue to suggest the bearish trend in the upcoming sessions, depending on the negative effect of the previously completed double top pattern, waiting to break 1200.00 to confirm opening the way to head towards our next target at 1180.00.

Expected trading range going forward is between 1180.00 support and 1215.00 resistance.

Current Expected Trend: Bearish



Gold Charts

Gold Supplies Drying Up

China is the world’s biggest gold producer, accounting for 15% of global output.

And in 2017, its production tumbled 9% — a record drop.

This is not a typical occurrence.

In fact, it’s only the second time since 1980 (37 years) that China’s gold output has fallen. But since 2016, authorities in Beijing have increased their scrutiny of gold mining. That’s led to broad closure of smaller mines in the country.

Indeed, China aims to consolidate and upgrade the industry by cutting the number of gold miners to around 450 from more than 600, and shutting down 40 metric tons of outdated production capacity by the end of 2020.

This consolidation is an ongoing process that will shrink supplies at a time when demand is rising. That will exacerbate an already-lopsided imbalance, as Chinese demand for gold is already twice the level of production.

China produced an estimated 420.5 metric tons of gold last year, according to the World Gold Council. Yet, over the same period, Chinese demand for gold rose by 4% to 953.3 metric tons.

Before China took the top spot, South Africa was the world’s most prolific gold-mining country.

In the 1880s, the discovery of gold in South Africa’s Witwatersrand Basin (Responsible for more than 40% of all gold ever mined in human history!) transformed Johannesburg into one of the world’s largest and most populous cities.

To this day, South Africa’s economy is the most advanced and stable in sub-Saharan Africa, all thanks to gold. But now, it’s running out and miners are fleeing. The country produced just 167.1 metric tons in 2016, an 83% plunge from the 1970 peak of more than 1,000 metric tons.

Australia, another long-time gold baron, is poised to see a similarly-devastating drop in gold production in the decades to come.

In just 40 years, all but four of the 71 currently operating mines in the country will be exhausted. And most of these will close in just the next couple of decades.

The end result: Australia's gold production will be cut in half, falling from 9.7 million ounces last year to 4.7 million ounces in 2057.

Coincidentally, revenues will fall from $15.8 billion to $7.3 billion, the number of active mines will decline from 71 to 47, and the number of workers directly employed will drop from 28,000 to 7,300. All of this, of course, is part of the ‘Peak Gold’ phenomenon — something Metals Analysts have talked about many times before. Simply put, gold is a finite resource, and there’s only so much left to mine.

Or, as Australia’s, Association of Mining and Exploration Company’s Chief Executive, Warren Pearce, put it:

"Discoveries these days are becoming more and more difficult, and the next major resource finds are going to be at greater depth. We're looking at a situation over a 40-year outlook that says our production is going to halve unless we're able to either increase our rate of discovery by 200% or increase our productivity by 200%.”

Basically, Pearce is saying the Australian gold mining sector is sunk unless it's able to drill deep enough into the earth to double the current rate of discovery and production.

That is what we call a “pipe dream.”

In all, gold mining output is projected to fall by roughly a third over the next decade. And from there it’ll continue to fall at an accelerating pace, as the world’s deepest, richest gold mines exhaust themselves.

America is not exempt from peak gold. U.S. production has tumbled by about 10 million metric tons in the past decade. And there have been no major discoveries to speak of.

The world is running out of gold. We don’t know how to say it any more clearly.

Contact Us for ideas on these and other metals.