Day: October 21, 2024

Gold and silver showed no sign of slowing their rise on Monday as investors continue to pour into precious metals.

Gold futures (GC=F) touched fresh records, rising as much as 0.8% to hover near highs of $2,750 per ounce. Silver futures (SI=F) gained more than 3% before paring gains, briefly topping $34 per ounce, the highest level in 12 years.

The two precious metals have outperformed the broader markets, with bullion rising 26% year to date and silver gaining 35% during the same period, compared to the S&P 500’s (^GSPC) gain of 19% since the start of 2024.

Gold purchases by central banks, which hit a record in the first quarter of 2024, have been one of the biggest drivers of the precious metal’s rise this year. BofA analysts estimate gold has surpassed the euro to become the world’s largest reserve asset, second only to the US dollar.

Investors have also flocked to physically backed gold exchange-traded funds, with inflow up three months in a row, according to the World Gold Council.

“I think it’s the declining inflation expectation and also the rotation of assets that tend to perform well with a more dovish Fed,” Phil Streible, Blue Line Futures chief market strategist, told Yahoo Finance on Monday morning.

The strategist sees gold reaching $2,850 by the end of the year.

Meanwhile, silver surged higher after gaining more than 6% on Friday. JPMorgan analysts cited sentiment at the recent London Bullion Market Association/London Platinum and Palladium Market conference, with attendees forecasting an average year-ahead price of $45 per ounce for the grey metal.

“This bullish view is driven by a sense that silver is undervalued vs gold, less crowded, and supported by multifaceted, versatile demand applications,” wrote JPMorgan analysts on Friday.

Silver is used across different industries, from electronics to fuel cells in automobile components and solar panels. The analysts see uncertainty ahead for the metal if former President Donald Trump were to win the presidential election.

“We are bullish silver ourselves, though for this strong silver outperformance to eventuate, we likely need to see industrial metals prices continue to rally in 2025, something that could get complicated under a Trump presidency and a hard line on tariffs early next year, despite Chinese stimulus,” said the note.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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By Sam Tobin

LONDON (Reuters) -BHP is cynically trying to avoid its responsibility for Brazil’s worst environmental disaster, lawyers representing thousands of victims told London’s High Court on Monday, as a lawsuit worth up to 36 billion pounds ($47 billion) began.

More than 600,000 Brazilians, 46 local governments and around 2,000 businesses are suing BHP over the 2015 collapse of the Mariana dam in southeastern Brazil, which was owned and operated by BHP and Vale’s Samarco joint venture.

The dam’s collapse unleashed a wave of toxic sludge that killed 19 people, left thousands homeless, flooded forests and polluted the length of the Doce River.

BHP, the world’s biggest miner by market value, is contesting liability and says the London lawsuit duplicates legal proceedings and reparation and repair programmes in Brazil and should be thrown out.

It also says nearly $8 billion has already been paid to those affected through the Renova Foundation, with around $1.7 billion going to claimants involved in the English case.

The lawsuit, one of the largest in English legal history, entered a decisive stage on Monday with the beginning of a 12-week trial to determine whether BHP is liable.

The claimants’ lawyer Alain Choo Choy said in court filings made public on Monday that “there is a chasm between what BHP regards as ‘acceptable’ and the compensation to which the claimants consider themselves legally and morally entitled”.

He argued that BHP’s actions in fighting the case and funding separate litigation in Brazil showed the miner was “cynically and doggedly trying to avoid” responsibility.

“Although that is BHP’s choice, it cannot properly now claim to be a company ‘doing the right thing’ by the victims of the disaster,” Choo Choy added.

‘EXAGGERATED’

BHP argues it did not own or operate the dam, which held minings waste known as tailings. It said a Brazilian subsidiary of its Australian holding company was a 50% shareholder in Samarco, which operated independently.

The miner also said it had no knowledge the dam’s stability was compromised before it collapsed.

Lawyers representing the miner said in court filings: “There is no law or contract which imposed any duty of safety on the ultimate parent company of a non-controlling shareholder and the other parent company in the same corporate group.

“Nor was there any breach of such duty of safety. And nor did BHP’s acts or omissions cause the collapse.”

BHP also said that parts of the lawsuit were “implausible or exaggerated”.

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Question: “At 63 years old, I am concerned over my retirement income. I retired at 60, with a passive income of about $45,000 per year, and started receiving $1,500 per month in Social Security at 62. My income is from rental properties with long-term leases that should extend through my 70s. I managed to put about $200,000 into an IRA. My mortgage is about $450 a month, plus taxes and insurance, with 10 years remaining. What options do I have to increase my portfolio and ensure my financial security for the next 15 years?”

Answer: You have a lot to consider here — and you may want to have a financial adviser help you make a plan to help your money grow and last throughout retirement, pros say. But before we go into whether to get a financial planner or not, let’s look at your situation and see what risks you might be facing that you should think about.

Some of your biggest risks are general inflation, renter risk — the potential for a tenant to have a negative impact — and long-term care costs, says Mark Struthers, a certified financial planner and founder of Sona Wealth Advisors.

Inflation risk: To outpace inflation, you’ll want to be sure your money is hard at work. Look at how that IRA is invested and whether that aligns with your long-term goals, suggests Ryan Haiss, a certified financial planner and co-founder of Flynn Zito Capital Management. “I often see DIY investors overexposed to certain sectors, such as technology, or taking on more risk than they realize,” Haiss says. “While that may work well in strong markets, it can be detrimental during downturns. An adviser can help review your investment strategy to ensure it aligns with your long-term goals.”

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Investors in the T-Rex 2X Inverse Nvidia Daily Target ETF (BATS:NVDQ) are grappling with significant losses as shares of Jensen Huang-led Nvidia Corp. (NASDAQ:NVDA) experience a remarkable stock surge.

As per Benzinga Pro, the T-Rex ETF has seen a dramatic 96% decline in investor wealth over the past year. This stark contrast comes as Nvidia’s stock has soared by 221.08% during the same timeframe.

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However, it is noteworthy that the T-Rex ETF is designed to achieve daily inverse investment results, meaning its long-term performance may not mirror Nvidia’s stock trends. It aims for a daily return of 200% of the inverse of Nvidia’s daily performance, setting it apart from conventional ETFs.

Simply put, this ETF is designed to gain value when Nvidia’s stock price decreases and lose value when Nvidia’s stock price increases. It achieves this by using derivatives, such as options or futures, to bet against Nvidia’s stock performance.

See Also: Bitcoin, Ethereum, Dogecoin On The Rise As ‘Uptober’ May Be Finally Here: Analysts Predict Bullish Breakout For King Crypto, ETH’s Rally To $3,300

Meanwhile, Nvidia remains a leader in the chip industry, with its shares closing up 0.8% at $138 on Friday, boosting its market capitalization to over $3 trillion. Experts like Ram Ahluwalia from Lumida Wealth Management are optimistic about Nvidia’s potential to reach a $4 trillion valuation, citing strong demand for GPU chips.

Additionally, Dan Niles of Niles Investment Management forecasts that Nvidia’s revenues and stock could double in the coming years, driven by AI investments. Goldman Sachs and Bofa Securities have also increased their price targets for Nvidia, reflecting confidence in its growth prospects.

The changing interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. 

For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only).

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