Japan braces for gold smuggling rush in shadow of tax hike

As Japan prepares to raise the consumption tax for the first time in half a decade next year, many feel gold smuggling will also get a boost. When the tax was last increased in 2014, to 8% from 5%, smuggling of gold jumped as criminals quickly realized how to game the system. Hong Kong does not tax gold. Buyers can use mules and the tax component becomes pure profit.

With the consumption tax set to rise to 10% in October 2019, margins will grow even fatter for criminals.

Japan is considered the "go-to place" for gold smugglers. In 2017 seized gold amounted to 6,236 kg, a 47-fold increase. Japan even exported 215 tons of gold in 2017, despite being a producer of only tens of tons domestically. That was almost double the 114 tons exported in 2014.

The scale of smuggling is said to exceed 150 tons.

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Trump imposes tariffs on $200-billion worth of Chinese goods

Trump said on Monday he will impose 10% U.S. tariffs on $200 billion worth of Chinese imports. He warned that if China takes retaliatory action, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.” Collection of tariffs will start September 24. The rate will increase to 25% by the end of 2018.

Gold-Silver Ratio highest in 27 years

The Gold-Silver Ratio has been thought of as a reliable technical ‘buy’ indicator for silver, whenever the ratio climbs above 80. The ratio represents the number of silver ounces it takes to buy a single ounce of gold. The gold-to-silver ratio has moved above 85. One needs to go back to 1991 for the last time it was higher than it is now. In ancient times, the ratio was set at 12 to 1. In 1792, the ratio was fixed by law in the US at 15:1. The current ratio is high historically, 60% above the 20-year average.

Conventional wisdom suggests silver is undervalued relative to gold. The all time high for the gold-to-silver ratio occurred in February 1991, at the height of an economic recession. The current gold-to-silver spike is happening absent any major crisis, and as major stock indices hit new all-time highs. Experts are suggesting we may be approaching a correction in the US stock markets.

Bombardier CS-300 engine trouble for Swiss International Airlines

A Swiss International Airlines Bombardier CSeries CS-300 from Stockholm to Zurich had been enroute and was in initial descent when the crew declared they needed to shut the left hand engine down due to low oil pressure. The same incident happened to AirBaltic on 5th August. Swiss International Air Lines was the launch customer for the CS-300.

Nevsun Resources Ltd. - NSU.t

Nevsun Resources Ltd. - NSU.t operates the flagship Bisha Mine in Eritrea, East Africa. The Bisha deposit is a large, high-grade volcanogenic massive sulphide (VMS) producing Gold, Silver, Copper and Zinc. Total reserves are about 22mt giving an expected mine life into 2025.

NSU chart by TradingView

On September 5, 2018 the company released News

Nevsun Resources Ltd. and Zijin Mining Group Co. Ltd. have entered into a definitive agreement pursuant to which Zijin will make a takeover bid to acquire all of the issued and outstanding shares of Nevsun for $6 per share in cash. The offer is valued at $1.86-billion ($1.41-billion (U.S.)). The cash consideration of $6 per share represents a premium of 57 per cent over Nevsun's unaffected closing price of $3.82 on May 7, 2018, the day Lundin Mining Corp. first publicly announced its intention to acquire Nevsun. ____________________________ On July 16, 2018 the company released News

Lundin Mining Corp. intends to make a formal offer to acquire all of the issued and outstanding common shares of Nevsun Resources Ltd. for cash consideration of $4.75 (Canadian) per share. The offer price represents a significant premium of 82 per cent to the closing price of $2.61 (Canadian) on Feb. 6, 2018, the date of the first offer to Nevsun related to Lundin's interest in acquiring Timok. This is a 33-per-cent premium to the closing price of $3.58 (Canadian) per share on the Toronto Stock Exchange as of April 30, 2018, the date of Lundin Mining's previously announced prior proposal to Nevsun, and a 40-per-cent premium to the volume weighted average trading price of $3.35 (Canadian) per share on the TSX over the 20 trading days ended April 30, 2018. The offer price values Nevsun at an equity value of approximately $1.4-billion (Canadian) ($1.1-billion USD). http://canadastockjournal.blogspot.com/2016/10/nevsun-resources-ltd-nsut.html