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September 27, 2024

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China’s injection of additional fiscal stimulus into its economy injected more optimism into equity markets. This sent share prices of Chinese stocks exploding to the upside once again. So it shouldn’t be surprising that the iShares China Large-Cap ETF (FXI) made it to second position in the StockCharts Technical Rank (SCTR) Report US ETFs Top 10 category. In addition, US equities, commodities, and cryptocurrencies soared, similar to the price action of the last couple of days.

FIGURE 1. SCTR REPORT OF SEPTEMBER 26, 2024. The iShares China Large-Cap ETF (FXI) took the number two spot for the US ETFs Top 10 category.Image source: StockCharts.com. For educational purposes.

Analyzing FXI

On Wednesday, the monthly chart of FXI showed that FXI was trading at its 23.6% Fibonacci retracement level. Thursday’s price action shifted the narrative. FXI has now broken above that level and is heading toward its 38.2% Fib level, which would be $33.83.

FIGURE 2. MONTHLY CHART OF FXI WITH FIBONACCI RETRACEMENT LEVELS. Thursday’s price action shows FXI approaching its 38.2 Fibonacci retracement level. Watch this level closely.Chart source: StockChartsACP. For educational purposes.

Thursday’s price action is more convincing evidence that this could be the start of a bull rally in the Chinese equities. Shares of Alibaba (BABA), JD.com (JD), Baidu (BIDU), and Yum! Brands (YUM) all saw significant price spikes. Is it worth accumulating positions in FXI? Let’s analyze the daily price action of FXI (see below).

FIGURE 3. DAILY CHART OF FXI. Thursday’s gap up in price adds further confirmation that this could be the beginning of a bull rally in FXI. The On Balance Volume is trending higher, indicating that volume is increasing.Chart source: StockChartsACP. For educational purposes.

FXI gapped up again after Thursday’s news. The daily chart shows that Tuesday’s gap up opened close to the May 17 high. Wednesday’s price action didn’t show any follow-through, but the candlestick bar remained within the body of Tuesday’s candle. Thursday’s candle closed near the open, resembling a doji, which represents indecision. The ideal doji is one where the open and close are the same.

Another encouraging indication is the On Balance Volume (OBV) is trending higher. The 5-day simple moving average overlay on OBV further confirms the increasing volume.

When’s a Good Time to Buy FXI?

David Tepper, founder and president of Appaloosa Management, shared his optimism about China on CNBC. Should you take the same route?

This is just the start of China’s stimulus, and it may take a few months to realize the effects of all this stimulus. So I would look for FXI to reach $33.83. A move higher would be an opportunity to add FXI to your portfolio, as long as the bullish sentiment holds.

Equities, commodities, and cryptocurrencies are riding on this China stimulus news. If FXI sold off at $33.83 or on its way there, that could impact all markets. So watch the activity in FXI, since it could act as an early indicator to an across-the-board selloff.

The bottom line. Add the daily and weekly charts of FXI to your StockCharts ChartLists and continue to monitor them. The weekly chart clearly shows potential entry and exit levels. Set StockCharts Alerts to notify you when FXI hits $33.83.

Last but not least, regularly monitor the SCTR Reports on Your Dashboard.


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.

OpenAI’s ChatGPT is one of the latest technological breakthroughs in the artificial intelligence space. But what is ChatGPT, and can you invest in OpenAI? Read on to learn about its history — including its controversies — how to get investment exposure to OpenAI and other stocks you can buy in the generative AI space.

This emerging technology is representative of a niche subsector of the AI industry known as generative AI — systems that can generate text, images or sounds in response to prompts given by users.

Precedence Research expects the global AI market to grow at a compound annual growth rate (CAGR) of 19 percent to reach US$2.57 trillion by 2032. Just how much of an impact OpenAI’s ChatGPT will have on this space is hard to predict, but S&P Global suggested in December 2023 that the total market revenue of generative AI as a whole will see a CAGR of 57.9 percent through 2028, increasing from US$3.7 billion last year to US$36.36 billion in 2028.

“With the launch of ChatGPT late in 2022, the true scale of its disruptive potential was more realized across the world in 2023,” said Naseem Husain, senior vice president and exchange-traded fund (ETF) strategist at Horizons ETFs. “Its success has sparked a wave of generative and chat AI models, from Midjourney to Grok.”

Of course, OpenAI has also generated a lot of controversy, such as fears over job destruction and targeted disinformation campaigns. And let’s not forget the odd and abrupt, however brief, ousting of OpenAI CEO Sam Altman.

Many lawsuits have emerged as well. Multiple news outlets, including the the New York Times, have launched copyright lawsuits against OpenAI, and some of the plaintiffs are also seeking damages from the private tech firm’s very public partner Microsoft (NASDAQ:MSFT).

Additionally, the Authors Guild, which represents a group of prominent authors, launched a class-action lawsuit against OpenAI that is calling for a licensing system that would allow authors to opt out of having their books used to train AI, and would require AI companies to pay for the material they do use.

None of the controversy has curbed enthusiasm for investing in OpenAI, which, as of August 29, is reportedly on the verge of launching a new round of funding projected to bring its valuation to more than US$100 billion. Tech giants Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA) are rumored to want in on the round, as is its partner Microsoft.

In late September, Reuters reported that OpenAI is planning a restructuring that would see the non-profit become a for-profit company in order to make it ‘more attractive to investors.’ The non-profit OpenAI will still exist on its own and have a minority stake in the for-profit company. CEO Sam Altman will also receive an equity position in the new for-profit OpenAI.

What is OpenAI’s ChatGPT?

Created by San Francisco-based tech lab OpenAI, ChatGPT is a generative AI software application that uses a machine learning technique called reinforcement learning from human feedback (RLHF) to emulate human-written conversations based on a large range of user prompts. This kind of software is better known as an AI chatbot.

ChatGPT learns language by training on texts gleaned from across the internet, including online encyclopedias, books, academic journals, news sites and blogs. Based on this training, the AI chatbot generates text by making predictions about which words (or tokens) can be strung together to produce the most suitable response.

More than a million people engaged with ChatGPT within the first week of its launch for free public testing on November 30, 2022. Many were in awe of the chatbot’s seemingly natural language capabilities, not only in terms of understanding questions, but also because of its human-like responses. Users felt as if they were having a conversation with a human.

Besides being an excellent conversation partner, ChatGPT can write engaging short stories, develop catchy marketing materials, solve complicated math problems, and even create code in various programming languages.

Based on this success, OpenAI created a more powerful version of the ChatGPT system called GPT-4, which was released in March 2023. This iteration of ChatGPT can accept visual inputs, is much more precise and can display a higher level of expertise in various subjects. Because of this, GPT-4 can describe images in vivid detail and ace standardized tests.

Unlike its predecessor, GPT-4 doesn’t have any time limits on what information it can access; however, AI researcher and professor Dr. Oren Etzioni has said that the chatbot is still terrible at discussing the future and generating new ideas. It also hasn’t lost its tendency to deliver incorrect information with too high a degree of confidence.

Further improving on its product, in May 2024 OpenAI launched Chat GPT-4o, with the o standing for omni. OpenAI describes GPT-4o as ‘a step towards much more natural human-computer interaction—it accepts as input any combination of text, audio, image, and video and generates any combination of text, audio, and image outputs.’

This version has done away with the lagging response time afflicting GPT-4. This proves especially helpful for producing immediate translations during conversations between speakers of different languages. It also allows users to interrupt the chatbot to pose a new query to modify responses.

Why is Microsoft investing in OpenAI?

Ascannio / Shutterstock

Since 2019, Microsoft has invested at least US$3 billion in OpenAI to help the small tech firm create its ultra-powerful AI chatbot, as reported by New York Times technology correspondents Cade Metz and Karen Weise.

Microsoft announced in mid-January 2023 that as part of the third phase of its partnership with OpenAI, it will make ‘a multiyear, multibillion dollar investment.’ Although the company hasn’t disclosed the total amount of its latest spend, reports at the time indicated that US$10 billion is on the table.

According to a February article from Reuters, OpenAI was valued at US$80 billion, meaning Microsoft’s US$10 billion move would be huge. However, as of late 2023 there were rumors that OpenAI has only received a fraction of that purported investment.

As mentioned in the intro, Microsoft is reported to be interested in participating in OpenAI’s rumored upcoming funding round as well.

How could Microsoft benefit from its investment? It seems the tech giant is hopeful advancements in generative AI may increase revenues for its Azure cloud computing business, as OpenAI officially licensed its technologies to Microsoft in 2020. Indeed, Pitchbook has described the deal as an “unprecedented milestone” for generative AI technology.

The strength of Microsoft’s confidence in OpenAI’s Altman was definitely on display in late November, when it quickly moved him to the payroll of its advanced AI research team after he was fired from OpenAI. Barely a week passed before Altman was back at the helm of OpenAI with major board changes, including the addition of Dee Templeton, Microsoft’s vice president of technology and research partnerships and operations, as a non-voting observer.

What is Elon Musk’s relationship to OpenAI?

DIA TV / Shutterstock

OpenAI was founded in 2015 by Altman, its current CEO, as well as Tesla’s (NASDAQ:TSLA) Elon Musk and other big-name investors, such as venture capitalist Peter Thiel and LinkedIn co-founder Reid Hoffman. Musk left his position on OpenAI’s board of directors in 2018 to focus on Tesla and its pursuit of autonomous vehicle technology.

A few days after ChatGPT became available for public testing, Musk took to X, formerly known as Twitter, to say, “ChatGPT is scary good. We are not far from dangerously strong AI.” That same day, he announced that X had shut the door on OpenAI’s access to its database so it could no longer use it for RLHF training.

His reason: “OpenAI was started as open-source & non-profit. Neither are still true.”

Furthering his feud with OpenAI, Musk filed a lawsuit against the company in March 2024 for an alleged breach of contract. The crux of his complaint was that OpenAI has broken the ‘founding agreement’ made between the founders (Altman, Greg Brockman and himself) that the company would remain a non-profit. Altman and OpenAI have denied there was such an agreement and that Musk was keen on an eventual for-profit structure.

Musk dropped the lawsuit three months later without giving a reason, reported Reuters. The day before he dropped the lawsuit, he reacted to the news that Apple is partnering with OpenAI to incorporate ChatGPT with Apple devices. On X, Musk declared, ‘If Apple integrates OpenAI at the OS (operating system)level, then Apple devices will be banned at my companies. That is an unacceptable security violation.” It should be noted that OpenAI has said queries completed on Apple devices will not be stored by OpenAI.

Is ChatGPT revolutionary or hype?

Is ChatGPT a revolutionary technology or just another hyped-up tech fad that will flop, much in the way of Google Glass or the Segway? It may be too early to tell, but as with any new technology, there are plenty of wrinkles to iron out.

One of the most challenging bugs to fix before ChatGPT can be deployed more widely is the chatbot’s propensity to respond with “plausible-sounding but incorrect or nonsensical answers,’ admits OpenAI.

Remember, its selection of which words to string together are actually predictions — not as fallible as mere guesses, but still fallible. Even the 4.0 version is “still is not fully reliable (it “hallucinates” facts and makes reasoning errors),” says the company, which emphasizes that users should exercise caution when employing the technology.

Indeed, ChatGPT’s failings can have dangerous real-life consequences. Among other negative applications, the tech can be used to spread misinformation, carry out phishing email scams or write malicious code. What’s more, the AI-based technology is prone to racial and gender-based biases. Not only has this language learning model contributed to the human-like quality of its responses, but it has also picked up on some of humanity’s shortcomings.

“ChatGPT was trained on the collective writing of humans across the world, past and present. This means that the same biases that exist in the data, can also appear in the model,” explains Garling Wu, staff writer for online technology publication MUO, in a September 2023 article. “In fact, users have shown how ChatGPT can give produce some terrible answers, some, for example, that discriminate against women. But that’s just the tip of the iceberg; it can produce answers that are extremely harmful to a range of minority groups.”

On the flip side, an August 2023 study by the University of East Anglia identified a left-wing bias in ChatGPT. Researchers at the school said their work shows that ChatGPT ‘favors Democrats in the U.S., the Labour Party in the U.K., and president Lula da Silva of the Workers’ Party in Brazil,’ according to Forbes.

There’s also the fear among teachers that the technology is leading to an unwelcome rise in academic dishonesty, with students using ChatGPT to write essays or complete their science homework.

“Teachers and school administrators have been scrambling to catch students using the tool to cheat, and they are fretting about the havoc ChatGPT could wreak on their lesson plans,” writes New York Times tech columnist Kevin Roose.

Cybersecurity risks are also a concern for ChatGPT users, and recent events along these lines add validity to Musk’s warning. For one, ChatGPT for macOS was discovered to be breaching Apple’s security rules by storing data as plain text rather than encryption, making it possible for other apps to access.

What’s the future of OpenAI and ChatGPT?

The ChatGPT 3.5 platform is free to use, and can be accessed via the web. Those with an iPhone or iPad can also use ChatGPT through an app, and an Android version launched in July 2023. OpenAI also launched a paid subscription, ChatGPT Plus for business use, in August 2023. ChatGPT Plus gives users access to GPT-4, and the newest iteration GPT-4o.

In addition to Microsoft’s use of the ChatGPT technology as part of Copilot, other companies are working with OpenAI to incorporate the technology into their platforms, including Canva, Duolingo (NASDAQ:DUOL), Intercom, Salesforce (NYSE:CRM), Scale, Stripe, and Upwork (NASDAQ:UPWK).

As uptake increases, generative AI technology is replacing humans in the workplace, and will likely continue doing so in a number of fields, from content creation and customer service to transcription and translation services, and even in graphic design and paralegal fields. However, humans are hitting back, as evidenced by recent lawsuits launched against OpenAI and Microsoft. As mentioned, a growing group of prominent authors is suing the creator of ChatGPT and its financial backer for infringing on their copyright by using their books without permission to train the language models behind ChatGPT and other AI-based software.

The New York Times has also taken a stand by taking OpenAI and Microsoft to Manhattan Federal Court.

‘Defendants seek to free-ride on the Times’s massive investment in its journalism by using it to build substitutive products without permission or payment,’ states the complaint. ‘There is nothing ‘transformative’ about using the Times’s content without payment to create products that substitute for the Times and steal audiences away from it.’

Scarlett Johansson has also entered the ChatGPT legal minefield after she discovered OpenAI using what she claims is her voice for its chatbot personal assistance voice, Sky. CEO Sam Altman, however, has denied using her voice without permission.

“The voice of Sky is not Scarlett Johansson’s, and it was never intended to resemble hers. We cast the voice actor behind Sky’s voice before any outreach to Ms. Johansson,” Altman said in a May 20, 2024 statement. “Out of respect for Ms. Johansson, we have paused using Sky’s voice in our products. We are sorry to Ms. Johansson that we didn’t communicate better.”

What about the long-term goals for OpenAI and ChatGPT? Metz of the New York Times believes the end game is “artificial general intelligence, or AGI — a machine that can do anything the human brain can do.”

In keeping with this end goal, OpenAI made a major move by acquiring an AI creative firm with a deep talent bench, Global Illumination, in mid-August 2023. ‘Global Illumination is a company that has been leveraging AI to build creative tools, infrastructure, and digital experiences,’ states OpenAI on its website.

‘The team previously designed and built products early on at Instagram and Facebook and have also made significant contributions at YouTube, Google, Pixar, Riot Games, and other notable companies.’

In November 2023, OpenAI decided to give customers without coding skills the ability to create customized versions of its chatbot and access to large data sets for training. “OpenAI wants people to start innovating using the chatbots and creating special chatbots,” Hod Lipson, an engineering and data science professor at Columbia University, told CNBC.

Chatbot creators will eventually have the ability to share their custom chatbots through OpenAI’s GPT Store. “They’re really trying to create a marketplace, which will allow companies and people to innovate and play around with this incredible form of AI that they’ve just unleashed,” Lipson added.

What is Google’s Gemini?

While ChatGPT has been generating major buzz, it’s definitely not the only chatbot out there.

Notably, Alphabet (NASDAQ:GOOGL) subsidiary Google launched its answer to ChatGPT in March 2023. Originally known as Bard AI, the chatbot is built on Google’s Language Model for Dialogue Applications (or LaMDA). Google CEO Sundar Pichai has described Bard as an “experimental conversational AI service … (that) seeks to combine the breadth of the world’s knowledge with the power, intelligence and creativity of our large language models.”

As with ChatGPT, users can key in a query, request or prompt and it will provide a human-like response. One way in which Google’s chatbot may have had a leg up on the original ChatGPT is that the latter could only use data up to 2021, while the former can access up-to-date information online; this is less relevant now that GPT-4 no longer has this limitation.

However, this ability to access current data hasn’t spared it from ChatGPT’s biggest folly: confidently stating misinformation as fact. The Verge reported that when asked about new discoveries from the James Webb Space Telescope, Google’s chatbot “made a factual error in its very first demo.”

In early in 2024, Google launched the latest iteration of its Bard Advanced AI chatbot with a new name, Gemini AI. The new version is powered by Google’s Gemini Ultra large language model.

Which stocks will benefit the most from AI chatbot technology?

Other than companies directly tied to generative AI technology, which stocks are likely to get a boost from advances?

There are several verticals in the tech industry with indirect exposure to AI chatbot technology, such as semiconductors, network equipment providers, cloud providers, central processing unit manufacturers and internet of things.

Some of the publicly traded companies in these verticals include:

Graphics processing unit leader Nvidia

FAQs for investing in OpenAI and ChatGPT

When will OpenAI go public?

OpenAI stock is not currently publicly traded, but following the recent move to restructure the company from a non-profit to a for-profit entity, Forbes reports that an initial public offering (IPO) may be in the works for 2025. For now, investors can gain exposure through related tech companies discussed here.

For example, if Microsoft does take a large position in the company, investors will be able to gain indirect exposure to OpenAI by purchasing Microsoft shares. For those seeking direct exposure, be on the lookout for news of an upcoming IPO.

How is OpenAI funded?

OpenAI raised US$11.7 billion over seven funding rounds from 2016 to April 2024.

Top investors include technology investment firm Thrive Capital, venture capital firm Andreessen Horowitz and revolutionary technology investment firm Founders Fund.

As reported above, OpenAI may soon initiate a new round of funding worth a projected US$100 billion, with potential participation by Apple and NVIDIA.

What is the market value of ChatGPT/OpenAI?

OpenAI has a market valuation of US$80 billion as of February 2024. The company’s 2023 revenue had reached US$2 billion mark in December 2023 to join the ranks of Google and Meta (NASDAQ:META). OpenAi’s annualized revenue reached US$3.4 billion in May 2024.

Following the planned restructuring from a non-profit to a for-profit company, OpenAI’s valuation is projected to increase to US$150 billion.

Does ChatGPT use Nvidia chips?

ChatGPT’s distributed computing infrastructure depends upon powerful servers with multiple graphics processing units (GPUs). High-performance Nvidia GPU chips are preferred for this application as they also provide excellent Compute Unified Device Architecture support.

Will ChatGPT cause another GPU shortage?

ChatGPT and generative AI will most likely not cause a GPU shortage. The type of GPUs used for machine learning models like ChatGPT are different from other types of GPUs, including those used to power gaming systems or crypto mining.

Can ChatGPT make stock predictions?

A University of Florida study recently highlighted the potential for advanced language models such as ChatGPT to accurately predict movements in the stock market using sentiment analysis.

During the course of the study, ChatGPT outperformed traditional sentiment analysis methods, and the finance professors conducting the research concluded that “incorporating advanced language models into the investment decision-making process can yield more accurate predictions and enhance the performance of quantitative trading strategies.”

When to expect ChatGPT 5?

OpenAI filed a trademark application for ChatGPT-5 in mid-July 2023, which hinted that the next iteration of the generative AI technology is currently under development. There were rumors the company planned to complete training for ChatGPT-5 by the end of 2023, but this did not materialize.

PC Guide noted in April 2024 that Sam Altman had teased an “amazing new model this year’ in a March 2024 interview on the Lex Fridman podcast. More recently, tech writer Suswati Basu shared that OpenAI confirmed in a May 28 blog that a new model is in the works, and she predicts an expected release in late 2024 or early 2025.

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

This post appeared first on investingnews.com

Like its sister metal gold, silver has been attracting renewed attention as a safe-haven asset.

Although it continues to exhibit its hallmark volatility, many silver investors believe that a bull market is starting up for the precious metal. Experts are optimistic about the future, and as a result, some market watchers are putting forth price forecasts and asking themselves, “What was the highest price for silver?”

The answer reveals how much potential there is for the silver price to rise. Read on for a look at silver’s historical moves, and what they could mean for both the price of silver today and the white metal’s price in the future.

How is silver traded?

Before discovering what the highest silver price was, it’s worth looking at how the precious metal is traded. Knowing the mechanics can be useful in understanding why and how its price changes on a day-to-day basis and beyond.

Put simply, silver bullion is traded in dollars and cents per ounce, with market activity taking place worldwide at all hours, resulting in a live silver price. Key commodities markets like New York, London and Hong Kong are just a few locations where investors trade the metal. London is seen as the center of physical silver trade, while the COMEX division of the New York Mercantile Exchange, called the NYMEX, is where most paper trading is done.

There are two popular ways to invest in silver. The first is through purchasing silver bullion products such as bullion bars, bullion coins and silver rounds. Physical silver is sold on the spot market, meaning that in order to invest in silver this way, buyers pay a specific price for the metal — the silver price per ounce — and then have it delivered immediately.

The second is accomplished through paper trading, which is done via the silver futures market, with participants entering into futures contracts for the delivery of silver at an agreed-upon price and time. In such contracts, two positions can be taken: a long position to accept delivery of the metal or a short position to provide delivery.

Paper trading might sound like a strange way to get silver exposure, but it can provide investors with flexibility that they wouldn’t get from buying and selling bullion. The most obvious advantage is perhaps the fact that trading in the paper market means silver investors can benefit long term from holding silver without needing to store it. Furthermore, futures trading can offer more financial leverage in that it requires less capital than trading in the physical market.

Market participants can also invest in silver through exchange-traded funds (ETFs). Investing in a silver ETF is similar to trading a stock on an exchange, and there are several silver ETFs to choose from. Some ETFs focus on physical silver bullion, while others focus on silver futures contracts. Still others focus on the silver stocks or follow the live silver price.

What is silver’s all time high price?

The silver all-time high was US$48.70 per ounce, a level it reached on January 18, 1980.

However, the price didn’t exactly reach that level by honest means. As Investopedia explains, two wealthy traders called the Hunt brothers attempted to corner the market by buying not only physical silver, but also silver futures — they took delivery of those silver futures contracts instead of taking legal tender in the form cash settlements. Their exploits ultimately ended in disaster: On March 27, 1980, they missed a margin call and the silver market price plunged to US$11.

Silver wouldn’t test that high again until April 2011, when it reached US$47.94. At that time, its price uptick came on the back of very strong silver investment demand, and was more than triple the 2009 average silver price of US$14.67.

Silver price history

Silver price chart, November 1, 1999, to September 26, 2024.

Chart via Trading Economics.

After its 2011 peak, silver’s price pulled back over the following years before settling between US$15 and US$20 for much of the second half of last decade.

An upward trend in the silver price started in mid-2020, when it was spurred on by the economic uncertainty surrounding the COVID-19 pandemic. The price of silver breached the key US$26 level in early August 2020, and soon after tested US$30. However, it failed to make substantial progress past that.

In the spring of 2023, the silver price surged by 30 percent, briefly rising above US$26 in early May, but the precious metal cratered back down to US$20.90 in early October. Later in the month, silver advanced toward the US$23 level on the back safe-haven demand due to the Israel-Hamas war. Following remarks from Fed Chair Jerome Powell, rate cut speculation sent the price of silver to US$25.48 on November 30, its highest point for the fourth quarter.

After starting 2024 on a low note, the white metal saw gains in March on rising Fed rate cut expectations. The resulting upward momentum led silver to reach a Q1 high of US$25.62 on March 20 before breaking through the US$30 mark on May 17. The silver price reached a 12 year high of US$32.33 per ounce on May 20.

In Q3 this year, prices for the metal slid down past the US$27 mark to as low as US$26.64 by August 7 alongside its industrial cousin copper. Heading into the fourth quarter, silver has reversed course to the upside, tracking the record breaking moves in the gold price. Silver prices once again breached the US$30 level on September 13 to trade at US$32.71 as of September 26, up over 35 percent since the start of the year.

Market watchers are curious as to whether the silver price will continue its upward trajectory. Only time will tell, and it will depend on the white metal’s ability to remain above the critical US$30 level.

Like other metals, the silver spot price is most heavily influenced by supply and demand dynamics. However, as the information above illustrates, the silver price can be highly volatile. That’s partially due to the fact that the metal is subject to both investment and industrial metal demand within global markets.

In other words, it’s bought by investors who want it as a store of wealth, as well as by manufacturers looking to use it for different applications that are incredibly varied. For example, silver has diverse technological applications and is used in devices like batteries and catalysts, but it’s also used in medicine and in the automotive industry.

In terms of supply, the world’s three top producers of the metal are Mexico, China and Peru. Interestingly, even in those countries silver is usually a by-product — for instance, a mine producing primarily gold might also have silver output.

The Silver Institute’s latest World Silver Survey, put together by Metals Focus, outlines a 1 percent decrease in global mine production to 830.5 million ounces in 2023. This was in large part the result of a four month suspension of operations at Newmont’s (TSX:NGT,NYSE:NEM) Peñasquito mine in Mexico due to strike action among workers. In addition, lower ore grades and mine closures curtailed production in Argentina, Australia and Russia.

The firm is forecasting a 0.8 percent decline in global silver mine production to 823.5 million ounces in 2024. In countries such as the US and Morocco, expansions and new projects are expected to contribute to supply growth. However, a significant drop in silver production out of Peru and China is expected to offset these increases.

Looking at demand, Metals Focus is projecting 2 percent growth for 2024 as industrial fabrication is expected to reach another all-time high on a projected 20 percent increase in demand from the solar market. This could be tempered by an anticipated contraction of 13 percent for physical investment in silver bars and coins.

The silver market is expected to experience a substantial deficit of 215.3 million ounces in 2024, amounting to the second highest discrepancy in over two decades.

Is the silver price manipulated?

As a final note on silver, it’s important for investors to be aware that manipulation of prices is a major issue in the space.

For instance, in 2015, 10 banks were hit in a US probe on precious metals manipulation. Evidence provided by Deutsche Bank (NYSE:DB) showed “smoking gun” proof that UBS Group (NYSE:UBS), HSBC Holdings (NYSE:HSBC), the Bank of Nova Scotia (NYSE:BNS) and other firms were involved in rigging silver rates from 2007 to 2013. In May 2023, a silver manipulation lawsuit filed in 2014 against HSBC and the Bank of Nova Scotia was dismissed by a US court.

JPMorgan Chase (NYSE:JPM) has been long at the center of silver manipulation claims as well. For years the firm has been in and out of court for the accusations. In 2020, JPMorgan agreed to pay US$920 million to resolve federal agency probes regarding the manipulation of multiple markets, including precious metals.

In 2014, the London Silver Market Fixing stopped administering the London silver fix, which had been used for over a century to fix the price of silver. It was replaced by the LBMA Silver Price, which is run by ICE Benchmark Administration, in a bid to increase market transparency.

Market watchers like Ed Steer have said that the days of silver manipulation are numbered, and that the market will see a significant shift when the time finally comes.

Investor takeaway

While silver has neared US$50 multiple times, including its all-time high, it’s anyone’s guess whether it will reach those heights once again. Even so, many commentators say prospects are bright for buying silver — and no matter the current state of the market, investors will no doubt be watching to see how the metal fares.

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

This post appeared first on investingnews.com

‘The place to be right now I think for the most torque on this move in gold is really the silver junior mining stocks — the ones that have silver resources,’ he said during the interview. ‘I think they are going to take off like we saw in the spring of 2020, when we had a tremendous move in the silver miners. I think that’s going to happen again.’

Looking at the outlook for gold as it continues to make fresh all-time highs, Lundin gave a positive forecast.

‘Gold is in a unique spot in that it will benefit no matter what happens,’ he explained.

‘If there is a no landing — or a slow landing — and we are in an easier money environment and real interest rates are dropping, then gold and the metals and miners are going to do quite well and keep up with stocks I believe.’

In Lundin’s opinion, the yellow metal will also do well in a recession scenario. Whether or not that will happen remains to be seen — he currently places the odds of a recession at 40 to 50 percent.

He also shared details on the New Orleans Investment Conference, which will run from November 20 to 23. This year will be the 50th anniversary, and Lundin said his team will be pulling out all the stops — speakers will include Rick Rule, Jim Grant, Brent Johnson, Danielle DiMartino Booth, Lawrence Lepard, Peter Boockvar and many more.

Watch the interview above for more from Lundin, and click here to register for the event.

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

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Chilean Government prioritises Laguna Verde for CEOL

CleanTech Lithium PLC (AIM:CTL)(Frankfurt:T2N)(OTCQX:CTLHF), an exploration and development company advancing lithium projects in Chile for the clean energy transition, reports an announcement by the Chilean Government on the Expressions of Interest (‘RFIs’) process under which the Company made submissions in June 2024. This is part of the process for the awarding of a Special Lithium Operating Contract (‘CEOL’) to enter production

The Government has prioritised six salt flats for lithium development, including Laguna Verde the Company’s flagship project, as having the most favourable conditions to advance lithium exploration and extraction. The Ministry of Mining will award one CEOL per salt flat with companies only considered if they meet certain criteria.

Highlights:

Laguna Verde prioritised by the Chilean Government as one of six salt flats for which the CEOL awarding process will start.

CTL submitted RFIs to the Chilean Government in June 2024 in line with the updated CEOL application procedure as part of the National Lithium Strategy.

For a CEOL to be awarded companies must have experience in any stage of the lithium industry value chain, which includes exploration and development, the financial capacity to develop the project and, additionally, hold mining concessions equivalent to or greater than 80% of the applicable CEOL area within any of the six prioritised salar basins.

CTL´s RFI application directly addressed each of these key criteria and as the Company has a dominant licence position in the Laguna Verde basin it is the only Company that meets the mining concession area requirement.

The Chilean Government will now commence indigenous community consultations related to these six salars.

Additional to other criteria, CTL has developed a strong relationship with indigenous communities located in the surroundings areas, based on early engagement including a collaborative alliance signed in December 2023 to co-design the project´s Environmental Impact Assessment (‘EIA‘). The Company is also working with the regional University to promote local opportunities for future projects.

The next stage of the process is for companies to submit the CEOL application by December 31st 2024.

The RFI process has been transparent, and recognises the importance of progress made by applicants, with CTL being a leader in developing its projects based on using Direct Lithium Extraction (‘DLE‘), early and groundbreaking community engagement in the Atacama region, and full alignment with Chile´s National Lithium Strategy.

Steve Kesler, Executive Chairman and Interim CEO, of CleanTech Lithium PLC, said:

We are pleased the Chilean Government has provided an update on the CEOL process to support the lithium industry in Chile. It is very positive to see Laguna Verde has been prioritised as one of the salt flats that has the most favourable conditions to develop lithium production. We submitted our RFI highlighting the significant investment we have already made, the positive progress with DLE and our established engagement with local indigenous communities. The criteria set out by the Government recognises the status of the Company´s progress at the Laguna Verde project and puts in place a clear path to award a CEOL and the project’s development into production, which is targeted for 2027.’

For further information contact:

CleanTech Lithium PLC

Steve Kesler/Gordon Stein/Nick Baxter

Jersey office: +44 (0) 1534 668 321

Chile office: +562-32239222

Or via Celicourt

Celicourt Communications

Felicity Winkles/Philip Dennis/Ali AlQahtani

+44 (0) 20 7770 6424

cleantech@celicourt.uk

Beaumont Cornish Limited (Nominated Adviser)

Roland Cornish/Asia Szusciak

+44 (0) 20 7628 3396

Canaccord Genuity (Joint Broker)

James Asensio

+44 (0) 20 7523 4680

Fox-Davies Capital Limited (Joint Broker)

+44 (0) 20 3884 8450

Daniel Fox-Davies

daniel@fox-davies.com

Beaumont Cornish Limited (‘Beaumont Cornish’) is the Company’s Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish’s responsibilities as the Company’s Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

Notes

CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium’s mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of ‘green’ lithium to the EV and battery manufacturing market.

CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Francisco Basin, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Francisco Basin are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.

CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. https://ctlithium.com/

**ENDS**

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE:CleanTech Lithium plc

View the original press release on accesswire.com

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Piche Resources Limited (ASX: PR2) (“Piche” or the “Company”), is pleased to announce the first outstanding intersections received from its reverse circulation drilling programme on its Ashburton project in Western Australia. The results confirm the mineralisation and its downdip continuation at the Angelo A prospect.

HIGHLIGHTS

Assay results from the first six reverse circulation (RC) drill holes completed at the Angelo A prospect within Piche’s Ashburton project have all returned significant high grade uranium mineralisation.Equivalent U3O8 concentrations have been calculated from downhole gamma surveys and results include:ARC001 6.98m @ 1,617 ppm eU3O8 from 101.84 metresARC002 4.36m @ 2,205 ppm eU3O8 from 109.89 metresARC003 3.96m @ 1,516 ppm eU3O8 from 86.89 metresARC004 6.02m @ 801 ppm eU3O8 from 83.55 metresARC006 3.45m @ 5,129 ppm eU3O8 from 137.62 metres incl 0.34m @ 16,050 ppm eU3O8 from 139.11 metresARC007 1.30m @ 503ppm eU3O8 from 123.37 metres.The ongoing drilling programme is designed to confirm previous high grade uranium results at the Angelo A & B prospects, test a revised model for the controls on mineralisation and identify extensions to the existing mineralisation.The drilling is targeting Proterozoic unconformity style uranium mineralisation, like the Pine Creek Geosyncline in Australia and the Athabasca Basin in Canada.Further RC results will be released as the drilling programme continues and a diamond drill rig will be mobilised to site in the coming week.

The continuing drilling programme is being undertaken at, and along strike of, the Angelo A prospect. No exploration activities have been carried out at Angelo A over the last 40 years.

*ARCD005 is a pre-collar to a planned diamond drillhole which will be completed on arrival of the diamond drill rig

The drill rig will move to Angelo B prospect, approximately 1.3km to the northeast, following the completion of the Angelo A drilling.

This programme will be followed by a diamond drilling programme scheduled for later this month. These drilling programmes are planned to confirm the results from previous exploration by drilling several twin holes, to test a revised model for the control of the uranium mineralisation and explore for extensions to the mineralisation identified between 1973 and 1984.

The project area is located approximately 140km to the west-southwest of Newman in the Pilbara region of Western Australia (Figure 1). Piche holds three tenements totalling about 122km2 in its Ashburton Project (Figure 2).

Piche’s Managing Director, Stephen Mann, commented:

“The Company is very excited following the receipt of results from the first six holes of Piche’s initial drilling programme on its Ashburton Project. Not only have we confirmed the historical results with several twin holes, but we have shown that the mineralization continues downdip. Drilling to date has confirmed that mineralisation occurs within the typical unconformity model, with highly altered uranium rich sandstones at the unconformity, and the potential of mineralized “feeder” zones extending steeply below that unconformity zone. It is expected that further drilling in this campaign should result in more clarity of the distribution and controls of mineralization”.

Previous explorers at the Ashburton Project area focused their efforts on the unconformity between the mid Proterozoic sandstones and the early Proterozoic basement complexes.

The Ashburton Project area hosts unconformity-related uranium mineralisation. Unconformity uranium style deposits constitute approximately 20% of Australia’s total uranium resources and about one-third of the western world’s uranium resources and include some of the largest and richest uranium deposits2. Minerals are uraninite and pitchblende. The main deposits occur in Canada (the Athabasca Basin, Saskatchewan and Thelon Basin, Northwest Territories); and Australia (the Alligator Rivers region in the Pine Creek Geosyncline, NT and Rudall Rivers area, WA1). In both Canada and Australia mineralisation is often found at the unconformity and in the basement complex well below the unconformity.

Uranium mineralisation at the Ashburton Project area occurs along the Lower Proterozoic Wyloo Group/Mid Proterozoic Bresnahan Group contact. Uranium mineralisation has previously been identified from broad spaced drilling at Angelo A and B prospects (Figure 3). Mineralisation intersected in this first phase of drilling by Piche has identified significant uranium at, or near the unconformity, but also in units immediately above the unconformity and well into the underlying basement units. Mineralisation is commonly associated with hematitic alteration of felspathic medium to coarse grained sandstones and is spatially associated with carbonaceous and graphitic shales. Visible uraninite has been recognised in several intersections.

Click here for the full ASX Release

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Japan’s ruling party will elect its new leader Friday, and the winner will become the country’s next prime minister.

Out of a record nine candidates, three frontrunners are fighting a very close race that will likely end in a runoff vote.

The winner will take the helm of the world’s fourth-largest economy at a time of rising living costs, exacerbated by the weak yen and high inflation, as Japan faces growing security challenges in the region and friction with neighbors including China.

Among the favorites vying to lead the long-ruling, scandal-plagued Liberal Democratic Party (LDP) is Sanae Takaichi, the conservative economic security minister who could become the nation’s first woman prime minister; Shinjiro Koizumi, a charismatic young surfer who hails from a popular political dynasty; and former defense minister Shigeru Ishiba, who is on his fifth and final bid for the top job.

The conservative LDP has ruled Japan almost continuously since the party’s founding in 1955. Owing to its majority in the lower house, the LDP’s chosen candidate will be approved by Japan’s parliament, the Diet, when it convenes in October.

General elections are scheduled for next year, but the winning candidate could choose to call a snap election before then. Some reports suggest this could happen even before the US presidential election in November.

Prime Minister Fumio Kishida is not in the running after his surprise announcement last month that he would step down following a series of political scandals that fueled calls for him to resign.

The winner will be tasked with improving the LDP’s image ahead of those general elections.

The ruling party has in recent months been embroiled in one of Japan’s biggest political scandals in decades.

Two of the most influential factions in the LDP have been accused of failing to properly declare their income and expenditure and, in some instances, allegedly rerouting political funds to lawmakers as kickbacks.

Scandals surrounding several high-ranking officials haven’t helped, with some accused of involvement with election law violations or of offensive past comments against minorities.

Kishida had tried to contain the damage, replacing several cabinet ministers last year and abolishing his own party faction.

With the upcoming US presidential election, the new prime minister will navigate Japan’s relations with a new American leader at a time of growing security challenges in Asia, including an increasingly assertive China and a belligerent North Korea.

Partnership with Japan has long been central to US strategy in the Asia-Pacific region, and Kishida this year expanded Tokyo’s defense cooperation with its key ally.

“It’s safe to assume that Ishiba, Takaichi, and Koizumi will do quite well, but I really cannot say who out of those three will win the race,” Yu Uchiyama, a professor of politics at Tokyo University, told Reuters. “I don’t think we’ll know until the very last moment.”

The candidates

If Takaichi, 63, wins it would be a significant moment for Japan, where men continue to dominate politics and boardrooms.

But such a victory would not necessarily herald a new progressive era. The political veteran is a staunch conservative from the party’s right wing and has promised to prioritize economic growth. She has also opposed legislation that could allow married women to keep their maiden names, and has described Margaret Thatcher, the conservative late former British leader, as a role model.

She is a protégé of the late former Prime Minister Shinzo Abe and a supporter of his eponymous economic policies, and is similarly hawkish on security issues, favoring a revision of the country’s pacifist constitution.

Takaichi’s visits to Tokyo’s Yasukuni Shrine – which honors 2.4 million of Japan’s war dead, including convicted war criminals – have triggered protests from South Korea and China, victims of the country’s expansionist aggression during the first half of the 20th century.

Her plans to boost Japan’s economy include lowering interest rates, after the Bank of Japan hiked rates this year, and she has called for “strategic” fiscal spending to increase jobs and household incomes, according to Reuters.

Koizumi, 43, is the US-educated, charismatic son of popular former prime minister Junichiro Koizumi, and could be Japan’s youngest prime minister of the post-war period.

Koizumi has presented himself as a reformer – much like his father – and has promised to call a snap general election. He said he would continue the economic policies of outgoing leader Kishida.

Critics have pointed to his lack of experience in domestic politics and international relations, and an economic plan considered thin on details.

But Koizumi’s star power has made him popular with the public, especially among young voters and women.

He has supported legislation that could allow married women to keep their maiden names, and is in favor of women acceding to the imperial throne, something currently not permitted in Japan. Koizumi made headlines when he became the first cabinet member in the country to take paternity leave – only two weeks, but a significant move as Japan’s work culture means many new fathers don’t take any.

Ishiba, 67, is a veteran politician and serious about security issues. He has said Japan should reduce its dependence on nuclear energy in favor of renewables, and has called for an Asian version of the NATO security bloc to counter threats from China and North Korea.

In a political culture that prizes conformity, Ishiba has long been something of an outlier, willing to criticize and go against his own party. That willingness to speak out made him powerful enemies within the LDP but endeared him to more grassroots members and the public.

He sits on the more progressive wing of the conservative party.

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Multan, Pakistan — Pakistan’s government said Thursday that police had orchestrated the killing of a doctor who was in custody after he was accused of blasphemy. Officers then lied about the circumstances of his death, claiming he was killed in a shootout between police and armed men, a provincial minister said.

The statement marks the first time the government has accused security forces of what the doctor’s family and rights groups have said amounted to an extrajudicial killing carried out by police.

The doctor, Shah Nawaz, from the southern Sindh province, had given himself up to police last week in the district of Mirpur Khas, following assurances that he would be given a chance to prove his innocence.

Days earlier in the city of Umerkot, a mob claimed he insulted Islam’s Prophet Muhammad and shared blasphemous content on social media, and demanded his arrest. The mob also burned Nawaz’s clinic.

According to the provincial Interior Minister, Ziaul Hassan, a government probe concluded that Nawaz was killed shortly after he gave himself up to authorities in what was a staged “fake encounter” engineered by the security forces.

There was no shootout with armed men as police had claimed, Hassan told reporters at a news conference in the southern port city of Karachi, and added that Nawaz’s family will be able to file murder charges against police officers who killed him.

Hours after Nawaz was fatally shot and his body handed over to his family, a mob snatched it from Nawaz’s father and burned it.

Hassan’s statement backed up Nawaz’s family allegations earlier this week.

Accusations of blasphemy, sometimes even just rumors, can spark riots and mob rampages in Pakistan. Although killings of blasphemy suspects by mobs are common, extrajudicial killings by police are rare.

‘Eye for an eye’

Under Pakistan’s controversial blasphemy laws, anyone found guilty of insulting Islam or Islamic religious figures can be sentenced to death, though authorities have yet to carry out a death sentence for blasphemy.

Nawaz’s father thanked the government for backing the family and demanded that his son’s killers face justice under the eye-for-an-eye concept under Sharia, or Islamic law.

“We have only one demand: Those police officers who staged the killing of my son … must also be killed in the same manner,” said Nawaz’s father, Mohammad Saleh.

Saleh told The Associated Press over the phone that he was grateful for all the support the family was given and to all those who condemned extremist clerics who had enraged the mob with calls for his son to be killed.

“Those who killed my son should be punished quickly so that others learn a lesson and not indulge in extrajudicial killings in the future,” said Nawaz’s mother, Rehmat Kunbar.

She added her son can no longer come back to her but that she wants to save the children of other parents from the hands of extremists.

Nawaz’s killing was the second case of an extrajudicial killing by police this month in Pakistan.

A week before, an officer opened fire inside a police station in the southwestern city of Quetta, fatally wounding Syed Khan, a suspect held on accusations of blasphemy.

Khan was arrested after officers rescued him from an enraged mob that claimed he had insulted Islam’s prophet. But he was killed by a police officer, Mohammad Khurram, who was quickly arrested. However, the tribe and the family of the slain man later said they had pardoned the officer.

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Israel carried out part of its device attack targeting Hezbollah by concealing explosives inside the batteries of pagers brought into Lebanon, according to two high-ranking Lebanese security officials, who said the technology was so advanced that it was virtually undetectable.

Lebanese security officials watched a series of controlled explosions of some of the weaponized pagers, as investigations into who manufactured the wireless communication devices and how they made their way into Hezbollah’s pockets continued.

The pagers used in the controlled explosions were switched off at the time of the attack on September 17, which meant they did not receive the message that caused the compromised devices to detonate. The officials had a front-row seat to see just how catastrophic the blasts would have been to those carrying the devices and others around them.

Thousands of explosions struck Hezbollah members last week, targeting their pagers on Tuesday, and then walkie-talkies a day later. In all, the blasts killed at least 37 people, including some children, and injured nearly 3,000, according to Lebanese health authorities, many of them civilian bystanders. The attack blindsided the group, which had opted for analogue technologies after forgoing cell phones to avoid Israeli infiltration.

An improvised explosive device has five key components: A power source, an initiator, a detonator, an explosive charge and a case to put it all in. Sean Moorhouse, a former British Army officer and explosive ordinance disposal expert, said that only a detonator and explosive charge would have been needed to weaponize the pagers, which already have the other three components.

“It had to be done in such a way to make it invisible,” Moorhouse said, adding that one way to do that could have been modifying the battery itself – implanting an electronic detonator and small explosive charge inside of its metal casing, which would have made it impossible to detect with imaging, for example X-rays.

Other experts who reviewed footage of the blasts also said that explosive devices appeared to have been hidden in the pagers, suggesting a sophisticated supply chain attack involving a state actor.

That tallied with initial assessments by Lebanese authorities. Lebanon’s mission to the United Nations said in a letter sent to the UN Security Council last Friday that a preliminary investigation found that the communications devices were implanted with explosives before arriving in the country, tampered with “in a professional way” by “foreign entities.”

Mysterious supply chain stretches from Taiwan to Hungary

Multiple photos from the aftermath of last week’s attacks in Lebanon show remnants of the exploded pagers – also known as beepers – that were consistent with a model made by a Taiwanese firm, Gold Apollo, and fragments of walkie-talkies identified as the make of a Japanese firm, ICOM.

Lebanese authorities have said that the devices used in the attacks were Gold Apollo Rugged Pager AR-924 pagers and ICOM IC-V82 walkie-talkies. Both Gold Apollo and ICOM have distanced themselves from the compromised devices.

ICOM said that the IC-V82 model was discontinued a decade ago, and it could not determine whether the devices targeted in Lebanon were counterfeit or shipped from its company. Counterfeit versions are widely available for purchase on e-commerce websites, like Alibaba. Lebanon’s communications ministry said the IC-V82 radios used in the attacks were not supplied by a recognized agent, were not officially licensed and had not been vetted by the security services.

International investigative efforts have largely zeroed in on the Gold Apollo AR-924 pagers – tracing the model’s licensing and manufacturing from Taiwan to apparent shell companies to try to establish how the Israeli operation may have been carried out. The New York Times reported, citing three intelligence officers briefed on the operation, that Israel had set up at least three shell companies to disguise the identities of those making the pagers – Israeli intelligence officers.

The chairman and founder of Taiwan-based Gold Apollo, Hsu Ching-kuang, was questioned by Taiwanese prosecutors last Thursday before being released.

Wu set up a company called Apollo Systems Ltd in April of this year, listed under a Taipei address that appears to be a co-working space, according to corporate records. It is not clear if Wu was operating for BAC Consulting in Taipei under her new company name, Apollo Systems Ltd.

In December 2022 and February 2023, a YouTube channel for Apollo Systems HK uploaded two videos of the Gold Apollo AR-924 pager touting its “high-capacity lithium rechargeable battery” and other features. On its YouTube channel and website, Apollo Systems HK said that it had acquired the “sole distribution rights” to Gold Apollo pager systems. It also listed the AR-924 model as a product available for purchase.

Customs records in Taiwan, cited by the officials, showed that Gold Apollo shipped more than 20,000 pagers from Taiwan to the United States in the first eight months of 2024. More than 5,000 pagers were shipped to Hong Kong, while more than 3,000 pagers were shipped to Australia.

The Taiwanese officials said they had also checked the order history and the source of raw components for Gold Apollo pagers, adding that pager manufacturing was tightly controlled in Taiwan and that devices undergo regular inspections.

The Taiwanese prosecutors’ office is reviewing documents it obtained from Gold Apollo’s office. In a statement last Thursday, the prosecutors’ office said that there had “been no evidence found so far to suggest any involvements (sic) of Taiwanese nationals in the explosive terror attack.”

Investigations into the supply chain are also ongoing in Europe, where authorities are probing the Hungarian company, BAC Consulting, and another firm linked to Bulgaria and Norway, for any connections to the pager attack targeting Hezbollah.

There is no record of Gold Apollo exporting any pagers to Hungary in 2023 or 2024, the two Taiwanese officials said, citing custom records in Taiwan. In 2022, the company exported about 200 pagers to Hungary, they added.

Hungarian intelligence services have interviewed Bársony-Arcidiacono several times as part of their investigation into BAC Consulting but have not found any evidence that the pagers used in the attack were manufactured in the country, the government’s press office said in a statement. “The results have clearly established that the so-called ‘beepers’ were never present on Hungarian soil, and no Hungarian company or expert was involved in their production or modification,” it said.

Bulgarian authorities said they were investigating Norta Global Ltd after Hungarian media reported last week that the Sofia-based company was involved in the sale of the pagers to Hezbollah. Bulgaria’s national security agency DANS said that no pagers used in the attack were “imported, exported or manufactured in Bulgaria,” and that Norta Global Ltd had not carried out terrorist financing, or traded with anyone subject to sanctions. Bulgaria’s caretaker Prime Minister Dimitar Glavchev told reporters last Friday that the company under investigation was “a cash flow, mailbox-type of firm,” and that its director “acted by proxy.”

Hezbollah digs into devices’ supply chain

Hezbollah’s leader Hassan Nasrallah, in an address last Thursday, said that the militant group had formed multiple internal investigative committees to get to the bottom of what happened, vowing a “reckoning” for those responsible.

“Regarding the explosions, we have reached an almost certain conclusion, but we still need some time to confirm it,” Nasrallah said. “This entire matter is under thorough investigation and review, from the company that sold the devices, to manufacturing, transportation, arrival in Lebanon, and distribution, all the way to the moment of the explosion.”

He added that while the apparent goal of the attack was to kill as many senior Hezbollah officials as possible, much of the leadership had been unaffected because they were carrying older pager models, suggesting that the form of communication has been used by the group for some time.

“These attacks represent a new development in warfare, where communication tools become weapons, simultaneously exploding across marketplaces, on street corners, and in homes as daily life unfolds,” UN human rights chief Volker Türk told the Security Council last Friday. “Authorities have reportedly dismantled unexploded devices in universities, banks, and hospitals.”

He added that simultaneously targeting thousands of people – whether civilians or armed forces – without the knowledge of who is in possession of the targeted devices and their surroundings at the time of the attack, violates international human rights law.

Iran’s delegate to the UN said that Israel had intended to kill at least 5,000 civilians, but some devices were deactivated or not distributed. The delegate said that Israel had again “crossed a red line,” noting that Iran’s ambassador to Lebanon was among those injured.

Senior UN officials warned that the devices attack marked a turning point, calling for de-escalation and a ceasefire in Gaza before a war consumes the whole of the Middle East. Others said that the technology apparently used marked “dangerous new territory” in the world of warfare.

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South Korean lawmakers on Thursday passed a bill that criminalizes possessing or watching sexually explicit deepfake images and videos, with penalties set to include prison terms and fines.

There has been an outcry in South Korea over Telegram group chats where sexually explicit and illegal deepfakes were created and widely shared, prompting calls for tougher punishment.

Anyone purchasing, saving or watching such material could face up to three years in jail or be fined up to 30 million won ($22,600), according to the bill.

Currently, making sexually explicit deepfakes with the intention of distributing them is punishable by five years in prison or a fine of 50 million won ($37,900) under the Sexual Violence Prevention and Victims Protection Act.

When the new law takes effect, the maximum sentence for such crimes will also increase to seven years regardless of the intention.

The bill will now need the approval of President Yoon Suk Yeol in order to be enacted.

South Korean police have so far handled more than 800 deepfake sex crime cases this year, the Yonhap news agency reported on Thursday.

That compares with 156 for all of 2021, when data was first collated. Most victims and perpetrators are teenagers, police say.

Earlier this month, police launched an investigation into Telegram that will look at whether the encrypted messaging app has been complicit in the distribution of sexually explicit deepfake content.

Countries around the world are grappling with how to respond to the proliferation of deepfake material.

The US congress is debating several pieces of legislation including one that would allow victims of nonconsensual sexual deepfakes to sue, and one that would criminalize the publication of such imagery and make tech companies remove it.

Earlier this year, social media platform X blocked users from searching for Taylor Swift after fake sexually explicit images of the pop singer proliferated on social media.

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