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Party City to close all of its stores, report says

Business 2 Mins Read

Party City on Friday announced it will close all of its stores and has initiated corporate layoffs effective immediately, according to a CNN report.

CEO Barry Litwin told corporate employees in a meeting viewed by CNN that Party City has to “commence a winddown process immediately,” and that Friday would be their last day of work for the company.

“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, according to the report.

CNN reported the company’s closure was due to ongoing financial challenges at the party supply retailer, which less than two years ago filed for bankruptcy protection over its inability to pay off $1.7 billion in debt.

The New Jersey-based chain exited bankruptcy in September 2023 through a plan that included transitioning into a privately held company and canceling nearly $1 billion in debt. A majority of its 800 U.S. stores were able to stay open as it emerged from bankruptcy.

Litwin was named CEO in August and said at the time he saw “many opportunities to strengthen our financial performance and build a leading end-to-end celebration experience for consumers,” according to a press release. 

Prior to his appointment, he was the CEO of Global Industrial Company, a distribution leader in industrial products.

Competition in the party goods and costume space has grown in recent years, including Spirit Halloween’s continued rise within and outside of the spooky season. The holiday costume chain announced in October that it would open 10 new “Spirit Christmas” stores, with some of the stores being converted from existing Spirit Halloween locations.

Online retailers have also added pressure to Party City’s operation, even as the company began to offer items on Amazon in 2018.

Representatives for Party City did not immediately respond to CNBC’s request for comment on CNN’s report or potential story closures. Read the full CNN report here.

This post appeared first on NBC NEWS

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CFPB sues America’s largest banks for ‘allowing fraud to fester’ on Zelle

Business 3 Mins Read

The Consumer Financial Protection Bureau is suing America’s three largest banks, accusing the institutions of failing to protect customers from fraud on Zelle, the payment platform they co-own.

According to the suit, which also targets Early Warning Services LLC, Zelle’s official operator, Zelle users have lost more than $870 million over the network’s seven-year existence due to these alleged failures.

“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” said CFPB Director Rohit Chopra in a statement. “By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”

Among the charges:

The CFPB’s suit seeks to change the platform’s operations, as well as obtain a civil money penalty, that would be paid into the CFPB’s victims relief fund.

A spokesperson for Zelle called the suit misguided and politically motivated.

“The CFPB’s attacks on Zelle are legally and factually flawed, and the timing of this lawsuit appears to be driven by political factors unrelated to Zelle,’ Jane Khodos, Zelle spokesperson, said in an emailed statement. ‘Zelle leads the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law.’

In a follow-up statement, a Zelle spokesperson called the magnitude of CFPB’s claims about customer losses due to fraud ‘misleading,’ adding that ‘many reported fraud claims are not found to involve actual fraud after investigation.’

A JPMorgan spokesperson echoed those sentiments, calling it ‘a last ditch effort in pursuit of their political agenda.’

‘The CFPB is now overreaching its authority by making banks accountable for criminals, even including romance scammers,’ the bank said. ‘It’s a stunning demonstration of regulation by enforcement, skirting the required rulemaking process. Rather than going after criminals, the CFPB is jeopardizing the value and free nature of Zelle, a trusted payments service beloved by our customers.’

A Bank of America spokesperson highlighted the importance of Zelle to everyday users.

‘We strongly disagree with the CFPB’s effort to impose huge new costs on the 2,200 banks and credit unions that offer the free Zelle service to clients,’ said William Halldin in an emailed statement. ’23 million Bank of America clients have embraced Zelle, regularly using it to send money to friends, family and people they trust.’ 

Via email, a Wells Fargo spokesperson declined to comment.

Launched in 2017, Zelle allows users to send and receive money electronically. The platform has previously come in for criticism by Senate Democrats: Most recently, Sen. Richard Blumenthal, D-Connecticut, found customers had disputed over $372 million in scams and fraud in 2023 — with nearly three-quarters of the claimed losses never reimbursed by the banks.”

In its statement regarding the CFPB suit, Early Warning said reports of scams and fraud had decreased by nearly 50% in 2023, resulting in 99.95% of payments being sent without a report of scams and fraud.

The CFPB has announced a number of measures this month designed to protect consumers amid threats to its continued existence from the incoming second Trump administration.

This post appeared first on NBC NEWS

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Stock Market Sell Off: Is the Bull Market Over?

Stock 5 Mins Read

Uncertainty in the stock market makes it difficult to make investment decisions. When investors sell off stocks, everyone follows without giving it much thought and you’re left trying to figure out which path you should take. We saw this price action in the stock market on Wednesday after the Federal Open Market Committee cut interest rates by a quarter percentage point. Investors started to sell their holdings, which intensified toward the last few minutes of the trading day. 

The rate cut didn’t come as a surprise. The market had already priced it in. Fed Chairman Jerome Powell’s comments about slowing down rate cuts for the next two years led to the massive selloff. Inflationary concerns were one reason which may have heightened investor fear. The S&P 500 ($SPX) fell by 2.95%, and the Nasdaq Composite ($COMPQ) dropped by 3.56%. The S&P 600 Small Cap Index ($SML) got hit hard, falling over 4%.

It wasn’t just equities that sold off. Gold prices fell. Silver prices fell. Bond prices fell. Even cryptocurrencies felt the pain. 

So, how damaging was the selloff? Let’s dive into the charts of the broader stock market indexes. 

Equities Hammered Hard

Whenever there’s such a significant fall in equities, it’s natural to think about buying the dip. But before you jump into anything, it’s best to see if the uptrend is still in play. 

From its August low, the S&P 500 has been in an upward trend with a few pullbacks, the deepest one being in early September when it almost reached its 100-day simple moving average or SMA (see chart below). On Wednesday, the index closed below its 50-day SMA toward the low of the day. The daily chart below shows market breadth is declining. 

FIGURE 1. DAILY CHART OF THE S&P 500 INDEX WITH BREADTH INDICATORS. The index is close to hitting its late November lows, a key support level. If it breaks below that level and market breadth indicators continue to weaken, it could be a bearish signal. Chart source: StockCharts.com. For educational purposes.

The NYSE Advance-Decline Line (!ADLINENYC), the percent of S&P 500 stocks trading above their 200-day moving average ($SPXA200R), and the S&P 500 Bullish Percent Index ($BPSPX) are all trending lower. That the $BPSPX is below 50 shows that bearish pressure is dominant, which is concerning. 

The weekly chart is more optimistic in that the S&P 500 is still trending higher and above its 21-week exponential moving average (EMA). All the moving averages on the chart are trending higher.

FIGURE 2. WEEKLY CHART OF S&P 500 INDEX. All moving averages overlaid on the chart are trending higher. The S&P 500 is trading above its 21-day EMA. A break below the EMA would be the first signal of a reversal of a bull market. Chart source: StockCharts.com. For educational purposes.

The takeaway: Watch the November lows in the daily chart (blue dashed line). A close below this level would mean a break in the “higher highs, higher lows” trend. If the $BPSPX continues to decline and the S&P 500 falls below its November low and 21-week EMA, consider offloading partial positions. 

The Nasdaq Composite has a similar pattern in its chart, although it’s still above its 50-day SMA (see chart below). However, what is concerning about the daily chart of the Nasdaq is that it closed at its November high. A break below this level could break the series of higher highs and higher lows depending on how it unfolds. So watch this level carefully.

FIGURE 3. DAILY CHART OF NASDAQ COMPOSITE WITH MARKET BREADTH INDICATORS. The Nasdaq has reached its November high. Market breadth indicators are weakening. Keep an eye on this chart. Chart source: StockCharts.com. For educational purposes.

The NASDAQ Advance-Decline Line (!ADLINENAS), the percent of Nasdaq stocks trading above their 200-day moving average is at 54% and trending lower, and the Nasdaq Bullish Percent Index ($BPCOMPQ) are all trending lower with the $BPCOMPQ at 50. If you pull up the weekly chart by changing the Period dropdown menu to weekly and using a five-year range, the trend is still bullish, similar to the weekly chart of the S&P 500.

Fear Gauge Is Running Hot

The rise in fear can be seen in the action in the Cboe Volatility Index ($VIX) which closed at 27.62, a 74.04% increase. The chart of the S&P 500 vs. the VIX below shows how big of a move it experienced on Wednesday. 

FIGURE 4. S&P 500 VS. THE CBOE VOLATILITY INDEX ($VIX). Spikes in the VIX are accompanied by a pullback in the S&P 500. Chart source: StockCharts.com. For educational purposes. A spike of such a magnitude occurred in early August, which is when the S&P 500 pulled back and resumed a very optimistic uptrend. 

Despite the spike in the VIX, investors weren’t flocking to “risk-off” investments. Gold and silver prices fell as did cryptocurrency prices. Treasury yields rose with the 10-year yield at 4.494% and the US dollar surged against other major currencies, especially the euro. 

The Bottom Line

Now that the last FOMC meeting for the year is behind us, there’s not much remaining in terms of economic data except the November Personal Consumption Expenditure (PCE) on Friday. There’s also the Santa Claus Rally to look forward to. So if Wednesday’s chaotic price action is an opportunity to buy the dip, i.e., if the indexes reverse without falling past critical support levels, you could make some end-of-year trades that could turn profitable as we head into the new year.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Three RRGs to Keep You on Track

Stock 3 Mins Read

The Yield Curve

The RRG above shows the rotations of the various maturities on the US-Yield Curve.

What we see at the moment is that the shorter maturities like BIL, SHY, and IEI are in relative uptrends against GOVT which means that the accompanying yields are being pushed lower.

The longer maturities, all inside the lagging quadrant, are in opposite moves and their yields are being pushed higher.

The result of such a rotation is a so-called “steepening” of the yield curve.

This chart shows the 10-2 yield curve. 10-year yield minus 2-year yield. In a normal situation, longer-dated maturities carry a higher yield than shorter-dated maturities. For almost 2.5 years this was not the case in the US. The negative values in the chart above indicate an “inverted” yield curve. This has happened a few times in the past but it is considered non-normal.

The recent rise of the 10-2 difference above 0 indicates a return to normal for the US yield curve.

Another way of showing the move of the yield curve is by using the Dynamic Yield Curve tool on the site. Here are three snapshots of the YC move since mid-2022.

This visualization shows the love of the entire curve. It not only shows the steepening vs flattening move but also the rise of the total curve of around 2% from just above 2% to over 4.5% currently.

The Relative Rotation Graph showing the rotations of the various maturities will help investors to keep track of the steepening/flattening move.

The US Dollar

The RRG for the G10 currencies, using the USD as the benchmark, shows a picture that could not be more clear.

The USD is the strongest currency at the moment.

All currencies in this group are, moving further, inside the lagging quadrant, indicating downtrends against the USD which is the center of the RRG.

This is a pretty massive move showing the strength of the USD against all other currencies.

On the EUR/USD chart, we can see a test of a major support level of around 1.03.

Once that support breaks, the way down is wide open towards the 0.96 area where the market bottomed out in 2022.

On the flip side. When support holds and EUR/USD can take out 1.06 we will have a completed double bottom targeting the upper boundary of the current range.

Looking at the $USD index chart, which is the USD expressed against a basket of currencies, we see that an upward break has already taken place. Taking this as a lead suggests that the odds are tilted in favor of a downward break in EUR/USD.

Sectors and SPY

Despite the big drop earlier this week, the sector rotation on the weekly RRG has not drastically changed (yet). So far the strength for XLC and XLY remains present. Only XLF has rolled over but remains inside the leading quadrant.

A similar observation can be made on the daily version of this chart.

On the weekly chart of SPY, the price has dropped back to a double support area around 585 where the rising support line meets horizontal support coming off the October high.

So far this all remains within “normal behavior” for an uptrend.

When SPY breaks that double support level and leaves the channel a re-assessment of the situation is needed.

#StayAlert and have a great weekend — Julius

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Navigating the Indecisive SPY: What Investors Should Know

Stock 3 Mins Read

When running my StockCharts Technical Rank (SCTR) scan on Thursday, I was a little surprised to find that 75 exchange-traded funds (ETFs) and large-cap stocks made the cut, especially after Wednesday’s selloff. It was a little ray of hope.

A quick sweep of the list didn’t reveal a particular sector or asset class to be dominant. The stocks and ETFs represented a broad segment of the stock market.

After going through the list, one security that caught my eye was the SPDR S&P 500 ETF (SPY), which closely follows the S&P 500 ($SPX). After the 2.98% drop in the S&P 500 on Wednesday, is SPY still technically strong? Let’s look at the daily SPY chart (see below).

FIGURE 1. DAILY CHART OF SPY ETF. The last two bars in the chart show that SPY is wavering. It’s not breaking below the mid-November lows, yet it doesn’t seem to want to move higher. It is trading below its 50-day moving average, the RSI is indicating slowing momentum, and the S&P 500 Bullish Percent Index is below 50. Chart source: StockCharts.com. For educational purposes.

Since mid-August, the SCTR (pronounced s-c-o-o-t-e-r) score has been hovering between the 70 and 90 levels. It’s now almost at 80. On Thursday, the ETF’s price closed at around the same level as Wednesday’s and is below its 50-day simple moving average (SMA). The relative strength index (RSI) is getting close to its oversold level.

The bottom line is that even though the SPY has a SCTR score of 79, and it hasn’t broken below the mid-November low, the RSI indicates momentum is weak, and the S&P 500 Bullish Percent Index ($BPSPX) is at around 41%, i.e., leaning toward bearishness. 

So, after a selloff like we just had, does it make sense to consider adding long SPY positions at this level? At the moment, the SPY is acting indecisive, but at some point, it’ll have to make a directional up or down move. A reversal with strong follow-through would be a signal to go long. The indicators displayed in the chart of SPY should support the reversal. If, on the other hand, SPY breaks below the mid-November low and the SCTR score falls below the 76 threshold, it would be a signal to unwind some positions. 

This is one chart to monitor as we wind down the year. We’ll see if Santa comes through next week!

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Investing

Westgold Shares Scoping Study for Expansion of Fortnum Gold Operation

Investing 2 Mins Read

Westgold Resources (ASX:WGX,TSX:WGX,OTCQX:WGXRF) has completed a scoping study that evaluates an expansion of its Fortnum gold operation in Western Australia, the company said on Tuesday (December 17).

The study forms part of the company’s portfolio review, and shows a potential 10 year, fully integrated mine plan.

It outlines life-of-mine production of 713,000 to 871,000 ounces of gold, and covers Fortnum’s Starlight, Nathan’s and Yarlarweelor open pits, as well as the existing Starlight underground operation.

Also included in the study is a 91 percent increase in Starlight’s resource estimate. It now stands at 12.9 million tonnes at 2.7 grams per tonne gold for a total of 1.13 million ounces of gold.

“Fortnum is a mature, yet under drilled asset and is one of Westgold’s most profitable and productive operations,’ said Managing Director and CEO Wayne Bramwell, adding that Starlight has so far produced 800,000 ounces of gold.

“The scoping study contemplates a modest upfront capital investment to deliver a long life, fully integrated open pit and underground project of increased scale, supported by an expansion of our existing (900,000) processing plant to 1.5 million tonnes per annum,” he added in Tuesday’s press release.

Westgold said funding amounting to approximately $294 million will be needed over the expansion’s life. On a respective basis, open-pit pre-production capital, processing plant capital, life-of-mine underground capital development and working and exploration capital will require $39 million, $93 million, $113 million and $48 million.

Shares of the company rose as high as AU$3.25 in the wake of the news.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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5 Best-performing Canadian Nickel Stocks of 2024

Investing 10 Mins Read

After trending down in 2023, nickel prices climbed to a 10 month high in late May of this year. However, they’ve since pulled back to four-year lows. While this environment has been tough for nickel companies, some stocks are still thriving.

Supply is expected to outflank demand over the short term, but the longer-term outlook for the metal is strong. Demand from the electric vehicle (EV) industry is one reason nickel’s outlook looks bright further into the future.

Battery nickel demand is poised to triple by 2030, according to Benchmark. “Mid and high level performance EVs will be the primary driver of battery nickel demand growth in the coming years, particularly in Western markets,” said Jorge Uzcategui, senior nickel analyst at Benchmark. “There will be growth in China, but it won’t be as pronounced as in ex-China markets.”

As for Canada, nickel is listed as a top priority in the government’s Critical Minerals Strategy. The country is the world’s fifth largest producer of nickel, with much of its production coming from mines in Ontario’s Sudbury Basin, including Vale’s (NYSE:VALE) Sudbury operation and Glencore’s (LSE:GLEN,OTC Pink:GLCNF) Sudbury Integrated Nickel Operations.

In February, Canada Nickel Company (TSXV:CNC,OTCQX:CNIKF) announced its subsidiary NetZero Metals is planning to develop a US$1 billion nickel-processing plant in Ontario that will become North America’s largest once complete.

How have Canadian nickel stocks performed in 2024? Below are the top nickel stocks in Canada on the TSXV and CSE by share price performance so far this year. TSX stocks were considered, but didn’t make the cut.

All year-to-date and share price data was obtained on December 13, 2024, using TradingView’s stock screener. The top nickel stocks in Canada listed had market caps above C$10 million at that time.

1. Class 1 Nickel and Technologies (CSE:NICO)

Company Profile

Year-to-date gain: 533.33 percent
Market cap: C$35.9 million
Share price: C$0.19

Class 1 Nickel and Technologies’ flagship property is its Alexo-Dundonald nickel project near Timmins, Ontario. The past-producing asset hosts four nickel sulfide deposits. The company’s pipeline also includes the past-producing Somanike nickel-copper project near Val-d’Or, Québec, and the River Valley platinum group metals (PGMs) project near Sudbury, Ontario.

Class 1 Nickel released resource estimate updates for the Alexo South and Alexo North deposits in April and May of this year, respectively. The company said it expects to start work on a preliminary economic assessment for Alexo-Dundonald in the near term as part of its plan to bring the asset back into production.

On October 3, Class 1 Nickel put out an updated resource estimate for the Dundonald South nickel deposit. In the indicated category, the company reported a 781 percent increase in metric tons of ore and a 474 percent increase in pounds of nickel.

The Canadian nickel exploration company’s share price started off the year at C$0.06, and began climbing in April to reach a year-to-date high of C$0.40 on November 18.

2. Power Nickel (TSXV:PNPN)

Company Profile

Year-to-date gain: 318.18 percent
Market cap: C$187.23 million
Share price: C$0.92

Power Nickel is developing its 80 percent owned Nisk polymetallic property in Québec, which hosts nickel, copper, platinum and palladium mineralization. According to the company, it plans to create Canada’s first carbon-neutral nickel mine. The polymetallic nature of the project is a plus for the economic case for future nickel production in a low price environment.

This ongoing work has generated positive news flow for the company in 2024. After starting the year at C$0.24, Power Nickel began gaining in mid-April following two key announcements. First, the company released drill results from the newly discovered Lion zone 5 kilometers northeast of the main Nisk deposit. Shortly after, it announced the completion of its option to earn an 80 percent stake in Nisk from Critical Elements Lithium (TSXV:CRE,OTCQX:CRECF).

Power Nickel’s share price jumped more than 15 percent on May 10 to reach C$0.64 following news that drilling continued to expand the high-grade, near-surface Lion discovery, with notable assays including 14.42 meters at 0.59 grams per metric ton (g/t) gold, 69.14 g/t silver, 8.17 percent copper, 6.25 g/t palladium, 8.44 g/t platinum and 0.58 percent nickel.

In June, Power Nickel commenced an 8,000 meter summer drill program at Nisk, and closed a flow-through offering for gross proceeds of over C$20 million. Some of the biggest names in mining — Robert Friedland and Rob McEwen — participated.

The company’s excellent news flow continued into the fourth quarter with a series of stellar drill results from its Nisk winter drill program, including significant intersections as shared in its October 3, October 28 and November 11 news releases. Additionally, on December 5, Power Nickel announced it was executing a spinout of its interest in the Golden Ivan property in Chile into a wholly owned subsidiary Chilean Metals.

Power Nickel continued to climb before peaking at a year-to-date high of C$0.96 on December 12. On that same day, the company released another set of positive assay results from its work at Nisk.

3. Magna Mining (TSXV:NICU)

Company Profile

Year-to-date gain: 234.15 percent
Market cap: C$214.48 million
Share price: C$1.37

Magna Mining is a base metal exploration and development company based in Sudbury, Ontario. The company’s flagship assets are the Shakespeare Mine and the Crean Hill project. Shakespeare is a past-producing, nickel-copper-platinum group mine with major permits in place. The current deposit at Shakespeare hosts an NI 43-101 indicated open pit resource of 14.4 million MT. Crean Hill is a past producing nickel, copper and PGM mine.

In March, Magna announced the signing of a definitive off-take agreement with Vale Base Metals wholly-owned subsidiary Vale Canada for the advanced exploration portion of the Crean Hill project. A few months later, in June, it inked a toll milling agreement with Glencore Canada for the surface bulk sample of the 109 Footwall Zone at Crean Hill.

The company entered into a definitive share purchase agreement with a subsidiary of KGHM Polska Miedz (FWB:KGHA) to acquire a portfolio of base metals assets located in the Sudbury Basin, including the producing McCreedy West copper-nickel mine. In November, Magna completed an updated preliminary economic assessment at Crean Hill.

Magna Mining’s share price started off the year at C$0.57, and gradually climbing to double its value by September 13. It reached a year-to-date high of C$1.67 on December 4.

4. Tartisan Nickel (CSE:TN)

Company Profile

Year-to-date gain: 108.7 percent
Market cap: C$27.19 million
Share price: C$0.24

Tartisan Nickel s a Canadian battery metals exploration and development company focuses on developing the Kenbridge nickel-copper-cobalt project located in Northwestern Ontario, Canada.

Tartisan acquired additional exploration claims for the Kenbridge project in mid-May. In November, the company closed C$1.5 million in flow-through financing with proceeds primarily going to fund the exploration and development of the project.

Shares in Tartisan Nickel fluctuated significantly in 2024. The company kicked off the year at C$0.19 before falling to a low of C$0.10 on March 12. However, its share price climbed rapidly in May to reach a year-to-date high of C$0.26 on May 16. Although shares fell as low as C$0.12 in late June, its value had doubled back up to C$0.24 on December 13.

5. EV Nickel (TSXV:EVNI)

Company Profile

Year-to-date gain: 70.83 percent
Market cap: C$38.41 million
Share price: C$0.41

EV Nickel’s primary project is the 30,000 hectare Shaw Dome asset, which is situated near Timmins, Ontario. The property includes the high-grade W4 deposit, which has a resource of 2 million metric tons at 0.98 percent nickel for 43.3 million pounds of Class 1 nickel across the measured, indicated and inferred categories.

Shaw Dome also holds the large-scale CarLang A zone, which has a resource of 1 billion metric tons at 0.24 percent nickel for 5.3 billion pounds of Class 1 nickel across the indicated and inferred categories.

EV Nickel is working on integrating carbon capture and storage technology for large-scale clean nickel production, and has procured funding from the Canadian government and Ontario’s provincial government. In late 2023, the company announced it was moving its carbon capture research and development to the pilot plant stage.

The company’s news so far in 2024 includes the closure of a flow-through financing in March that ultimately saw EV Nickel raise C$5.12 million to fund the development of its high-grade, large-scale nickel resources.

In April, EV Nickel launched a 2024 exploration program that is aimed at advancing the CarLang trend and exploring other nickel targets. The most recent news out of the program came in early September with the announcement that diamond drilling at the Langmuir #2 high-priority nickel target had confirmed high-grade nickel, with intercepts such as 18.5 meters grading 1.07 percent nickel, 7.5 meters grading 1.67 percent nickel, 2 meters grading 3.27 percent nickel and 1 meter grading 5.11 percent nickel. EV Nickel described the results as ‘very encouraging.’

The Canadian nickel exploration company’s share price started off the year at C$0.30 before steadily climbing to reach a year-to-date high of C$0.79 on May 17.

FAQs for nickel investing

How to invest in nickel?

There are a variety of ways to invest in nickel, but stocks and exchange-traded products are the most common. Nickel-focused companies can be found globally on various exchanges, and through the use of a broker or a service such as an app, investors can purchase companies and products that match their investing outlook.

Before buying a nickel stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it’s critical to complete due diligence before making any investment decisions.

Nickel stocks like those mentioned above could be a good option for investors interested in the space. Experienced investors can also look at nickel futures.

What is nickel used for?

Nickel has a variety of applications. Its main use is an alloy material for products such as stainless steel, and it is also used for plating metals to reduce corrosion. It is used in coins as well, such as the 5 cent nickel in the US and Canada; the US nickel is made up of 25 percent nickel and 75 percent copper, while Canada’s nickel has nickel plating that makes up 2 percent of its composition.

Nickel’s up-and-coming use is in electric vehicles as a component of certain lithium-ion battery compositions, and it has gotten extra attention because of that purpose.

Where is nickel mined?

The world’s top nickel-producing countries are primarily in Asia: Indonesia, the Philippines and New Caledonia make up the top three. Rounding out the top five are Russia and Canada. Indonesia’s production stands far ahead of the rest of the pack, with 2023 output of 1.8 million metric tons compared to the Philippines’ 400,000 metric tons and New Caledonia’s 230,000 metric tons.

Significant nickel miners include Norilsk Nickel (OTC Pink:NILSY,MCX:GMKN), Nickel Asia, BHP Group (NYSE:BHP,ASX:BHP,LSE:BHP) and Glencore (LSE:GLEN,OTC Pink:GLCNF).

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Completion of Tranche 1 of the Placement

Investing 2 Mins Read

Cyprium Metals Limited (ASX: CYM, OTC: CYPMF) (Cyprium or the Company) is pleased to announce the successful completion of Tranche 1 of the two-tranche placement to raise in aggregate A$13.5 million (before costs) via the issue of a total of 483,203,140 fully paid ordinary shares in the Company (Placement Shares) at an issue price of A$0.028 per Share, as announced by the Company on 13 December 2024 (Placement).

Highlights:

  • Tranche 1 of the Placement raised A$5.2 million (before costs).
  • Completion of Tranche 2 of the Placement to raise an additional A$8.3 million is subject to shareholder approval at an extraordinary meeting to be held in January 2025.
  • Cyprium intends to undertake a retail entitlement offer to existing eligible shareholders on the same terms as the Placement.

Pursuant to the terms of the Placement, subscribers were offered 1 free-attaching unlisted option for every 2 Placement Shares subscribed for, with an exercise price of A$0.042 per option and expiry date of 31 December 2027 (Placement Options).

Under Tranche 1 of the Placement, the Company confirms that it has today issued:

  • 185,714,285 Placement Shares; and
  • 92,857,143 Placement Options.

Tranche 2 of the Placement, comprising 297,488,855 Placement Shares and 148,744,427 Placement Options will be issued subject to shareholder approval which will be sought at a meeting of the Company’s shareholders in January 2025. Shareholder approval is also being sought for the issue of 20,000,000 options on the same terms as the Placement Options to the cornerstone investor of the Placement.

Proceeds of the Placement will be used as follows:

  • Nifty site costs;
  • Permit support and DFS preparation and costs;
  • Tenement maintenance and geology work;
  • Working capital and costs of the Placement.

Canaccord Genuity acted as Lead Manager to the Placement.

Click here for the full ASX Release

This post appeared first on investingnews.com

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Gold, Silver and Bitcoin Prices Fall as Fed Caps Off Year with Rate Cut

Investing 4 Mins Read

The US Federal Reserve announced an interest rate cut of 25 basis points on Wednesday (December 18), reducing its target range to 4.25 to 4.5 percent in its third reduction of the year.

Policymakers also signaled that only two rate cuts are expected in 2025 versus the four originally forecast.

In comments after the Fed’s meeting, Chair Jerome Powell emphasized that the Fed will remain cautious next year, focusing on labor market strength and further progress in curbing inflation.

‘I think the actual cuts that we make next year will not be because of anything we wrote down today. We’re going to react to data; that’s just the general sense of what the committee thinks is likely to be appropriate,’ he said.

Gold, silver and markets fall post-rate cut

Financial markets experienced significant volatility following the Fed’s announcement.

The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped by 1,123 points on Wednesday, a 2.58 percent decline, which extended its losing streak to 10 consecutive days — the longest since 1974.

The S&P 500 (INDEXSP:.INX) dropped 178.45 points, or 2.95 percent, ending at 5,872.16.

Meanwhile, the Nasdaq Composite (INDEXNASDAQ:.IXIC) recorded the steepest decline of the three on Wednesday, losing 716.37 points, or 3.56 percent, to close at 19,392.69.

The selloff was triggered by the Fed’s cautious tone and change in its 2025 rate cut projections. Many market participants had anticipated a more aggressive series of reductions, and took the time to reassess their strategies.

Some experts have described the Fed’s move as a “hawkish cut.’ The Fed’s hesitation about future policy shifts has heightened investor uncertainty, leading to widespread profit taking in the market.

Bond yields also rose sharply as investors now expect tighter financial conditions for an extended period.

The gold price experienced volatility, shedding 2 percent following the rate cut, slipping to US$2,585 per ounce. The decline marked the first time the yellow metal has fallen below US$2,600 since mid-November.

While gold rebounded in after-hours trading, sister metal silver fell 3 percent after the rate cut and is holding in the US$29.20 per ounce range.

Powell talks Trump and Bitcoin after meeting

In a press conference after the Fed’s meeting, Powell addressed questions about how the central bank’s decisions may interact with economic policies proposed by President-elect Donald Trump.

While emphasizing the Fed’s independence, Powell also acknowledged the uncertainty currently surrounding Trump’s proposed tax cuts, tariff increases and immigration measures.

‘It’s very premature to make any kind of conclusions. We don’t know what will be tariffed, from what countries, for how long, in what size,’ Powell explained to reporters on Wednesday.

That said, he noted that Fed officials have started assessing potential scenarios. Powell also said Trump’s policies could have inflationary effects, particularly through increased tariffs and fiscal stimulus measures.

For instance, the Fed’s projections show economic growth remaining slightly above trend in 2025, with inflation staying above target for at least two more years. The jobless rate is expected to remain low, hovering around 4.3 percent.

These conditions, Powell said, will guide future monetary policy decisions, irrespective of changes in fiscal policy.

He also clarified the central bank’s stance on digital assets, responding to Trump’s campaign discussions on creating a strategic reserve for popular cryptocurrency Bitcoin.

Powell was clear that the Fed is not authorized to own Bitcoin under existing laws, and has no plans to advocate for legislative changes to enable such holdings.

‘That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed,’ he said.

Following Powell’s comment, Bitcoin dropped below US$100,000, its steepest decline since September of this year.

Moving forward, the Fed reiterated its goal to bring inflation back to its benchmark 2 percent target.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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