EZM/Zinc.....I don't believe we've heard any announcement YET from the US mint to not use zinc anymore in US coins because due to massive monetary inflation we're experiencing in America it's a money losing proposition to mint them as of now.
This looming or forthcoming announcement from the US mint could put short-term pressure on "overbought zinc"???
Any thoughts?....is US/world coinage demand a big part of the zinc market??
In the inflationary world environment we're in now most government coins minted around the world "could" substitute steel for zinc........and may do that soon due too the recent tripling in price??
TORONTO (CP) - The Canadian dollar charged ahead more than one cent US Tuesday, soaring to its loftiest heights since January 1978. The dollar closed up one cent to 90.87 cents US and went high as 91.12 cents US - the highest intraday since December 1977 - just a week after the currency cracked the 90-cent level for the first time in 28 years.
The last time the dollar closed so high, Pierre Trudeau was prime minister, Jimmy Carter was president of the United States, How Deep is Your Love by the Bee Gees was hogging the radio airwaves, The Boys from Brazil and The Buddy Holly Story were playing in movie theatres and Happy Days and Barney Miller were among the most popular shows on television.
The latest loonie boost comes on the heels of higher prices for oil, base and precious metals, commodities Canada has in abundance, analysts say.
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"When you look at the Canadian dollar these days, commodity prices are always part of the reason - no exception today," said TD Securities strategist Eric Lascelles.
"Commodity prices are up and the Canadian dollar is stronger."
Also lifting the loonie was weakness in the U.S. dollar.
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"And some of that is coming from an expectation that U.S. rates may be hiked less than once thought, that we may see the (expected) interest rate increase in the U.S. tomorrow but perhaps a more dovish sentiment going forward so that's flavouring markets as well," added Lascelles.
The U.S. Federal Reserve Board is meeting this week and is expected to announce Wednesday a quarter-point hike in its key rate to five per cent.
The increase would be the central bank's 16th consecutive increase since June 2004.
But investors also felt the Fed announcement could signal a pause in rising interest rates, thus making the greenback less attractive to investors.
The loonie's latest surge came as oil headed sharply higher, the June contract for bullion on the New York Mercantile Exchange closed above the $700 US an ounce level for the first time since October 1980, the price of copper rose and platinum hit a new record of $1,243 US an ounce.
Oil and gold prices headed higher Tuesday after U.S. Secretary of State Condoleeza Rice rejected a letter from Iran's leader to U.S. President George W. Bush proposing "new solutions" to the tensions, saying "it isn't addressing the issues that we're dealing with in a concrete way."
The June contract for light, sweet crude on the Nymex moved ahead 92 cents to $70.69 US a barrel.
The June price for bullion in New York gained $21.60 to $701.50.
Energy markets have been particularly nervous that Iran could cut supplies because of international pressure to modify its nuclear program.
Higher Canadian interest rates have also served to make the currency more attractive recently.
Last month, the Bank of Canada upped rates another quarter point to four per cent to hold down inflation at a time when the economy is going flat out - and analysts think it likely the central bank will follow up with another quarter point hike May 24.
After that, the bank may decide that it, too, can afford to take a pause in raising rates as the Fed may choose to do.
"Certainly the Bank of Canada could help make the Canadian dollar a less favoured choice by sending out the same signal," said Avery Shenfeld, senior economist at CIBC World Markets.
"What the Bank of Canada cannot afford to do is to continue to hike once the Fed is done - it would just add fuel to the fire for the Canadian dollar."
Rogue, EZM, I hope the price of all oil, gas and minerals stabilize soon;, but like you, I don't think they will in dollar terms. The good news about EZM is that production should start to increase as hedges start to expire and reserves could continue to grow. Picture looks positive to me whether it earns 6 or 10 cents Canadian tomorrow.
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