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‘We have paid the price’: Gazans say Sinwar’s death will not change anything

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Abu Mohammed stands with red, bleary eyes. Women and young men walk on a muddied pathway as children run between rows of improvised tents in Deir al-Balah displacement camp, central Gaza.

Mohammed and others staying in makeshift displacement camps have survived Israeli bombardments that have laid waste to Gaza’s streets for over a year, enduring catastrophic violence, constant killings and disfigurement, and crippling hunger.

As Israel celebrated its killing of Hamas leader Yahya Sinwar this week – with its allies hoping Sinwar’s death will now open a possibility for peace in Gaza – Mohammed and many others remain skeptical it will change their daily reality.

Sinwar was a divisive figure to Palestinians: a militant hardliner, Sinwar was seen as a brutal force by some, a pragmatic political thinker by others, and a freedom fighter to many.

Born in a refugee camp in 1962, his family displaced from the Palestinian village of Al-Majdal – in what is now the Israeli city of Ashkelon – Sinwar was “a symbol of the Palestinian people,” in Mohammed’s view and that of many others.

Many Gazans today are afraid to publicly voice support for Sinwar and Hamas for fear of being targeted by the Israeli military — which launched its siege of Gaza with the stated aim of destroying Hamas after it led the October 7 terror attacks, and to save the hostages taken that day. Others fear condemning Hamas, which controls the Palestinian enclave.

“Sinwar was a target for Israel and he was targeted and killed. He attacked Israel, and committed crimes that we have paid the price for … We paid with horrific tragedies, with the blood of our children, our money, and our homes.”

She too said she had little hope that his death would be a turning point in the war. “The assassination of leaders seems to change nothing. (Israeli Prime Minister Benjamin) Netanyahu wants more and more people to be killed. We wish to live in security, peace, and stability,” she said.

Sinwar’s last moments

Sinwar’s death has prompted speculation among Western allies over whether the coming weeks could signal the beginning of the end of fighting in Gaza, and the release of 101 remaining Israeli hostages.

But Netanyahu has given no signal he is ready to end the war. And Hamas has vowed to continue fighting.

On Thursday, the Israel Defense Forces released drone footage that it said shows Sinwar in his final moments. The edited video shows the interior of a hollowed-out building, where a man that the IDF identifies as Sinwar can be seen perched alone on an armchair.

In the footage, the figure’s face is obscured by a scarf and covered in a thick layer of dust. His right arm appears to be injured, as he turns toward the drone. He is holding what the IDF described as a piece of wood, before throwing it toward the lens.

The footage appeared to show Sinwar at his weakest – alone and nearing defeat. But that’s not how most Palestinians see it, according to Mustafa Barghouti, a physician and an independent Palestinian politician.

“This image will make him look like a hero for most Palestinians,” Barghouti added, explaining that Sinwar’s apparent defiance in his final moments would be perceived by Palestinians as part of a broader historical resistance, even among those who did not agree with the Hamas leader’s tactics.

Like Sinwar, at least 70% of residents in Gaza are refugees, or descendants of those uprooted by al-Nakba, or “the catastrophe,” according to Amnesty International, when about 700,000 Palestinians were forcibly expelled from their homes during the creation of Israel in 1948.

Decades later, those same descendants are grappling with the same reality of being unable to return to their homes in Gaza, with an estimated 69% of buildings in the enclave now destroyed or partly damaged, according to the CUNY Institute.

For Abu Fares, one of hundreds of thousands prevented from returning to their homes, Sinwar’s death is just a continuation of a brutal war. “It will not stop the battle or the fighting, because the children who carried their father’s dismembered body and those who carried their sister’s dismembered body — what do you expect from them after 20 years?”

‘I wish for my own death’

Sinwar’s killing comes as the humanitarian crisis in Gaza spirals and the death toll from Israeli airstrikes continues to rise.

At least 42,500 people have been killed since October 8, 2023, with another 99,546 injured, according to the Ministry of Health in Gaza. At least 1.9 million of Gaza’s 2.2 million people have been displaced, according to the UN.

Entire families have been erased, with many neighborhoods reduced to wastelands of thick sewage pools. More than a million people in northern Gaza are facing a looming famine compounded by Israel’s aid restrictions, the UN warned earlier this year.

Around 70% of Palestinians killed by Israel’s strikes are women and children, according to the Hamas-run Government Media Office (GMO). More than 17,000 children have been killed in the Israeli attacks since October 8, the office said.

Israel has said that its sustained military campaign in Gaza is designed to root out what remains of Hamas, following the Hamas-led attacks that killed 1,200 people in Israel and saw more than 250 people abducted, according to Israeli authorities.

Israel says it takes steps to minimize civilian harm, like making phone calls and sending text messages to residents in buildings designated for attack. For years, it has also said Hamas fighters use mosques, hospitals and other civilian buildings to hide from Israeli attacks and launch their own – claims that Hamas has repeatedly denied.

But human rights agencies and many world leaders, including Israel’s allies, have repeatedly raised concerns over Israel’s war conduct and the civilian toll. Groups like Amnesty International also say warnings do not absolve Israel of responsibilities under international humanitarian law to limit civilian harm.

Mahmoud Jneid, also displaced in Deir al-Balah, said the world’s focus should rest on civilian suffering – not Sinwar’s death. “Sinwar was a target. What about us, the displaced? The closure of crossings and the lack of food and drink for children make our situation worse than (his) assassination,” he said.

“I wish Israel would assassinate me too,” Jneid said. “My brothers and family have died, and I wish for my own death so that I can find peace.”

This post appeared first on cnn.com

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Editor's Pick

Italy criminalizes surrogacy abroad in move slammed as ‘medieval’ by critics

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Italian parents who have made the often difficult and expensive decision to have children through surrogacy abroad have been thrown into a state of fear after a sudden shift in the country’s already strict restrictions on bringing those children up in Italy.

Italy has broadened its legislation on surrogacy, which has been illegal in the country since 2004, to now criminalize “surrogacy tourism” in countries like the United States and Canada, subjecting any intended parent who breaks the law to fines of up to €1 million ($1 million) and jail terms of up to two years.

As written, the law does not affect parents whose children born of surrogacy are already registered in the country, but many parents of younger children fear they could be targeted anyway when their children reach school age and have to register for the public school system.

The law, which came into effect immediately, passed the Italian Senate 84-58 after an impassioned debate that lasted more than seven hours on Wednesday and at times seemed as if it would come to blows.

Protesters demonstrating in front of the Senate during the lengthy debate carried signs that said: “We are families, not crimes,” and featured photos of their children under the words “the children we could never have.” Meanwhile, some called the proposed law a “medieval” ruling in interviews with Italian media.

The bill was introduced by Giorgia Meloni’s ruling far-right Brothers of Italy party and personally pushed by the prime minister, who has found in Pope Francis an ally on the surrogacy issue – underscoring the continued political influence of the Catholic Church in Italy, especially when it comes to reproductive issues.

Italy was one of the last western European nations to legalize same-sex unions, which it did in 2016, but still does not recognize same-sex unions as “marriage” under pressure from the Italian Catholic Church.

Meloni welcomed the Senate’s decision on X Wednesday, calling it “a common sense rule against the commodification of the female body and children. Human life has no price and is not a commodity.”

Earlier this year, Francis called for a global ban on surrogacy, describing the practice as “deplorable” and insisting that “a child is always a gift and never the basis of a commercial contract.” The pope, however, has not called for the practice to be criminalized and a 2023 Vatican doctrinal ruling pointed out that children born through surrogacy can be baptized.

The Catholic Church opposes surrogacy because it is “contrary to the unity of marriage and to the dignity of the procreation of the human person” and is against in-vitro fertilization (IVF) because the process involves the disposal of unneeded embryos, which the church believes is immoral.

Francis has shifted the church’s approach on welcoming LGBTQ people, but has maintained a strong line opposing both abortion and surrogacy. He has framed his critique of surrogacy as part of his long-running concerns about a “throwaway culture” where human beings are considered as “consumer goods” to be discarded and in surrogacy sees a danger of poorer women being exploited.

The new Italian law does not differentiate between same-sex and heterosexual couples, nor between altruistic or paid surrogacy, but it will disproportionately affect the LGBTQ community, advocates fear.

“The alleged defense of women, the vaunted interest in children, are just fig leaves behind which the homophobic obsession of this majority is hidden, not so much,” Laura Boldrini, an Italian politician and former speaker of Italy’s lower house of Parliament who also joined the protest in front of the Senate posted on X.

“Law or no law, same-sex families exist and will continue to exist. We will always be at their side in the battle for the affirmation of the rights of boys and girls and the self-determination of women.”

Alessia Crocini, president of the Rainbow Families advocate group, said: “We as Rainbow Families will not stop and will continue our battle in the courts and in the streets. We will fight every day to affirm the beauty and freedom of our families and our sons and daughters.”

Italy already bans gay couples from adopting children and last year the country started removing lesbian mothers’ names from some birth registrations if they were not the biological parent. Many local governments have already changed birth registrations to allow for only “mother” and “father” rather than “parent 1” and “parent 2,” which is widely accepted across the European Union.

Michela Calabro, head of LGBTQ rights group Arcigay’s political arm, called the law a serious denial of individual freedoms and self-determination.

“Introducing a crime, even a universal one, not only limits the possibility of choice, but also fuels a patriarchal vision of women’s bodies,” she said in a statement on X. “This measure highlights the Government and Parliament’s inability to address other important and urgent issues in our country. In fact, the parliamentary majority once again chooses to demonstrate its strength mainly on ideological arguments, while on pragmatic issues it confirms its total inability.”

It is unclear how the new law will be enforced, or if DNA checks could be required when babies are said to be born to Italian women abroad.

LGBTQ activists who protested outside the Senate on Wednesday said that heterosexual couples make up 90% of all surrogacies.

They argue that those couples will still be able to “sneak their children in” and get around the new law since, in the US and Canada, intended parents’ names can be put on foreign birth certificates for babies born to surrogates in compliance with state rules. Gay male couples would find it harder to find a loophole when returning to Italy.

The new legislation could prove challenging for Meloni politically. She enjoys a strong approval rating, with the latest polls showing she has 29.3% support (up 3% from when she took office in late 2022).

But the broad reach of the legislation has prompted wide criticism, including from heterosexual couples who have come out to protest alongside those in the gay community. She is also a close political ally of tech billionaire Elon Musk, who has had children via surrogates and who spoke at her political convention in December, telling her supporters to “make more Italians” to combat the country’s dwindling birth rate.

The pope and Meloni have also found common ground on this topic, with the pair joining forces at a conference aimed at tackling Italy’s declining birth rate, while Francis has generated attention for his view that some couples nowadays prefer to have pets rather than children.

But not all of Meloni’s policies are in line with those of Francis. The same day the controversial law passed, Italy began shipping some migrant men rescued at sea to Albania, in a move that is starkly against the Church’s teaching that migrants should be welcomed and Francis’ outspoken advocacy on this topic.

This post appeared first on cnn.com

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Economy

S&P 500 and Nasdaq: New Targets and Support Levels

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S&P 500 and Nasdaq: New Targets and Support Levels

  • During this morning’s Asian trading session, the S&P 500 finds support at the 5840.0 level
  • The Nasdaq gained new support this morning at the 20200.0 level

S&P 500 chart analysis

During this morning’s Asian trading session, the S&P 500 finds support at the 5840.0 level. Additional support in that zone is the EMA 50 moving average, which influenced the index to remain stable. In the EU session, we climbed up to $5860.0, and we expect a continuation of the bullish side in the US session. On Thursday, October 17, the S&P 500 created a new all-time high at 5882.5. We managed to break above the previous high from Monday, October 14.

All signs indicate that we can expect a continuation of the bullish consolidation. Potential higher targets are 5880.0 and 5900.0 levels. If the current bullish momentum decreases, the S&P 500 could turn to the bearish side. After that, we will see a pullback below the 5840.0 level and the EMA 50 moving average. Since we lost the previous support, we must continue the retreat and look for a new one at lower levels. Potential lower targets are 5820.0 and 5800.0 levels.

 

Nasdaq chart analysis

The Nasdaq gained new support this morning at the 20200.0 level. With the support of the EMA 200 moving average, we quickly moved back above the weekly open level to the positive side and continued to the daily high at 20315.0. The index at 20250.0 forms a higher low and thus confirms determination for further recovery to the bullish side. Potential higher targets are 20350.0 and 20400.0 levels.

If there is a reduction in the bullish momentum again, the Nasdaq will have to start a new pullback. We are again forced to test the weekly open level and the support of the EMA 200 moving average. This time, we need a break of the index below to a new daily low as a confirmation of bearish momentum. Potential lower targets are 20150.0 and 20100.0 levels. This week’s Nasdaq low was at 20042.0.

 

The post S&P 500 and Nasdaq: New Targets and Support Levels appeared first on FinanceBrokerage.

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Economy

Interactive Brokers Expands Crypto Services in 2024

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Interactive Brokers Expands Crypto Services in 2024

Interactive Brokers is one of the largest American electronic trading firms, with over 2.1 million clients and 3 million trades per trading day as of 2023. The company offers trading in 150 markets, including stocks, bonds, mutual funds, options, futures contracts, options on futures, currencies, cryptocurrencies, contracts for difference, derivatives, exchange of futures for physicals, and event-based trading contracts on elections and other outcomes.

Interactive Brokers has been deeply involved in the cryptocurrency market since its boom. Depending on their plan, clients can trade either four or eight cryptocurrencies through Pacos Trust Company and Zero Hash. The four primary cryptocurrencies offered are: 1. Bitcoin, 2. Ethereum, 3. Litecoin, and 4. Bitcoin Cash. With some of the lowest fees in the market, the broker offers 24/7 crypto trading through their associated apps.

Interactive Brokers offers futures contracts for both Bitcoin and Ethereum. Bitcoin contracts are at $5 for 5 coins per contract, while Ethereum contracts cost $3 for 50 coins per contract.

IB Expands To Dubai, Offers Lowest Crypto Fees

With the opening of a new office in Dubai (16th Oct 2024), Interactive Brokers brought their presence to the Middle East. With an existing strategy of cost-effective brokerage, now magnetically attracting high net-worth investors and a range of wealth management institutes, including banks, hedge funds, and many more. This predicts a brighter future for Interactive Brokers in the global market.

Furthermore, digging deep through the cryptocurrency trades by Interactive Brokers, they tend to have the lowest trading commissions, starting from 0.12% to 0.18% of trade value with a minimum of $1.75 per order, surpassing all the competitors in the present market.

Interactive Brokers Sees 19% Growth, Expands Globally Into Crypto

With a recent quarter result, Interactive Brokers showed a whopping 19% growth over the same period last year, with revenue reported at 1.37 billion in the September 2024 quarter result. The key advantage of the broker is the talk of the town as they provide trading in cryptocurrencies, stocks, options, futures, and ETFs, which came out to be a very strategic decision compared to competitors in the market who provide either cryptocurrencies or stocks on a single platform.

Continuous strategic growth planning helped Interactive brokers benefit from global demand by entering the United Kingdom and now in Dubai, taking competitive pricing as their advantage. With the demand for crypto trading, Launching the crypto option came out to be the upper hand as it helped to attract clients ranging from small to large scale.

Prioritising security and making it up to the mark for regulatory standards helped achieve investors’ trust instantly, as it was a major concern in the cryptocurrency industry, while simultaneously providing Educational resources to help clients with cryptocurrency trading complexities, making it accessible for new investors and traders.

The post Interactive Brokers Expands Crypto Services in 2024 appeared first on FinanceBrokerage.

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Stock

Signal Scoreboard As Good As It Gets

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At DecisionPoint, we track intermediate-term and long-term BUY/SELL signals on twenty-six market, sector, and industry group indexes. The long-term BUY signals are based upon the famous Golden Cross, which is when the 50-day moving average crosses up through the 200-day moving average. (We use exponential moving averages — EMAs.) Intermediate-term BUY signals are based upon the 20-day moving average crossing up through the 50-day moving average, which we call a Silver Cross. On the McDonalds (MCD) chart below, you can see examples of each.

A caveat that comes with the signals is that they are information flags, not action commands. A new signal tells us to look at the chart and decide if any action is appropriate. In the case of these two crossovers, they were healthy-looking signals, with price showing clear changes of direction within each timeframe.

Next we have the DecisionPoint Market Scoreboard, which we publish daily in the DecisionPoint ALERT. It is current as of the close on October 17, 2024, and it is as good as it can get. This is good news and bad news. The good news is that the stock market is looking very healthy in terms of raw price action. The bad news is that the signal status is as good as it gets, and the pendulum will be swinging the other way, probably sooner than later.

Along with the signal tracking, we have created the Silver Cross Index (SCI) and Golden Cross Index (GCI) for each of the market/sector indexes above. The Silver Cross Index shows the percentage of index components that are on a Silver Cross BUY signal. The Golden Cross Index shows the percentage of index components that are on a Golden Cross BUY signal.

The chart below is for the S&P 500 Index. Note that both the GCI and SCI show 80 percent of S&P 500 component stocks are on BUY Signals in both time frames. This is not as strong as in 2021, but it is very solid and partially backs up what we see on the DecisionPoint Market Scoreboard.

Conclusion: We check these charts every day, and are always aware of developing weakness and potential for signals to change. In the last few weeks, I found the picture to be unusually stable, and currently with no immediately impending signal changes. This, of course, could change in a heartbeat, but, for the moment, calm prevails. As I said, when things are as good as they can get, we should be alert for conditions to start deteriorating, but so far, so good.

Introducing the new Scan Alert System!

Delivered to your email box at the end of the market day. You’ll get the results of our proprietary scans that Erin uses to pick her “Diamonds in the Rough” for the DecisionPoint Diamonds Report. Get all of the results and see which ones you like best! Only $29/month! You can also use our free trial to try it out for two weeks using coupon code: DPTRIAL2. Click HERE to subscribe NOW!

Learn more about DecisionPoint.com:

Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!

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Use coupon code: DPTRIAL2 Subscribe HERE!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2024 DecisionPoint.com

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. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

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Stock

Dell’s Bullish Climb: Should You Get In Now?

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When the market is rallying in full swing, it can sometimes be difficult to select which stocks, among the hundreds, might present the best case to buy. For spotting the strongest stocks on a technical basis, the StockCharts Technical Rank (SCTR) can be an essential tool.

There are many ways to use the SCTR Report. One would be to pull the top-performing stocks. Another strategy is to view the Top Up tab in the SCTR Reports panel on Your Dashboard to find the stocks with the biggest SCTR moves. 

Dell Technologies (DELL) may not be leading the top 10 pack, but it’s beating hundreds of stocks that happen to be rallying as of this writing. Note: this can change during the trading day.

FIGURE 1. SCTR TOP UP REPORT. Despite DELL occupying 7th place at the moment of writing, it’s still among the top stocks gaining more technical strength in the US stock market.Image source: StockCharts.com. For educational purposes.

Dell Stock’s Price Action

Dell’s upward run is a continuation of the bullish reversal that started in August, as you can see in this weekly chart.

FIGURE 2. WEEKLY CHART OF DELL. Besides the dip in August, DELL’s uptrend, however volatile, remains unbroken.Chart source: StockCharts.com. For educational purposes.

Dell’s stock price uptrend remains intact despite the volatility and dip from February through August. The stock bounced back at the 61.8% Fibonacci retracement line, which, for many investors, served as a favorably low entry point.

Note the SCTR line above the chart. You should keep an eye on a crossover above the 70 line, which marks a bullish threshold for me (more on this later).

What  Conditions Might Trigger a Buy?

Let’s switch to a daily chart.

FIGURE 3. DAILY CHART OF DELL STOCK. Watch those swing points for potential entry points.

The following are important points to note on the chart:

  • The swing points illustrate an almost textbook uptrend (blue trendline) of higher highs (HH) and higher lows (HL).
  • The green arrows mark areas of support. If an uptrend consists of consecutive HHs and HLs, then support, and potential stop loss levels, would be right below each swing low.
  • The horizontal dotted blue lines mark potential resistance levels (and, for swing traders, multiple opportunities to close out with a profit). Dell’s stock price is currently breaking above the first resistance level marked on the chart.

The Chaikin Money Flow (CMF) below the chart is above the zero line (magenta rectangle), meaning buying pressure is a dominant factor in DELL’s momentum. You would want it to remain there if you were to go long.

So, when might you consider going long?

  • If you’re not already in the position, look at the SCTR line above the chart. Wait for the SCTR line to break above 70—that’s your first signal.
  • Ensure its CMF reading remains strong and does not show signs of weakening.
  • If DELL breaks the HH>HL pattern, then the short-term uptrend is in question and may trigger a stop loss below the swing point you’ve chosen as an ideal exit (where you place your stop loss will vary according to your risk tolerance).

How To Set a SCTR Alert

On Your Dashboard, click the Charts & Tools dropdown menu.

  • Select Advanced Alerts.
  • From Alert Components, select symbol from the TICKER PROPERTIES dropdown menu.
  • Select SCTR in the PRICE, VOLUME, & SCTRS dropdown menu.

The screenshot below displays the alert.

Save your alert and choose how you you’d like to be notified.

To learn more about setting alerts, visit the Technical Alert Workbench support page.

At the Close

When picking stocks in a rally, tools like the SCTR report make life easier. Dell (DELL) might not be sitting at the top spot right now, but it’s climbing fast, showing some serious technical strength. Keep an eye on that SCTR line—once it crosses 70, paired with a strong CMF reading, it could be your signal to go long. Set a SCTR alert on your dashboard to catch this market opportunity.

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

13 Canadian Crypto ETFs (Updated 2024)

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Cryptocurrencies such as Bitcoin and Ethereum offer an alternative route for building and storing wealth. While directly holding these digital assets is a popular option, investors are also clamoring for financial products such as crypto exchange-traded funds (ETFs).

Canada first launched Bitcoin and Ethereum ETFs in 2021. These Canadian Bitcoin and Ethereum ETFs allow investors to place returns in tax-sheltered accounts like tax-free savings accounts or registered retirement savings plans.

“There is a high demand for a Bitcoin product that has all the features that people love about ETFs — that they trade on an exchange, that they’re liquid,” Ross Mayfield, investment strategy analyst at Robert W. Baird & Co., told Bloomberg in mid-2021.

Interest has only increased since then. Sean Farrell, head of digital asset strategy at Fundstrat, wrote in mid-2023 that the Bitcoin ETF category at large has the potential to surpass the precious metals ETF market in terms of asset value. ‘Bitcoin ETF eventually could become >$300 billion category,’ he stated in the note.

Ethereum ETFs have also picked up steam and become a major talking point. Ethereum is the most widely used blockchain technology, and Ether, the digital currency of this platform, is the second largest cryptocurrency after Bitcoin.

With that in mind, it’s worth taking a look at the currently available Canadian cryptocurrency ETFs. The list below includes 13 Ether and Bitcoin ETFs available on the Canadian market sorted by assets under management, and all data presented is current as of October 17, 2024.

1. Purpose Bitcoin ETF (TSX:BTCC)

Company Profile

Assets under management: C$2.5 billion

Billed as the world’s first physically settled Bitcoin ETF, the Purpose Bitcoin ETF launched in February 2021 and is backed by Bitcoin in cold storage. This means the fund allows investors to add and sell Bitcoin with no digital wallet required.

Hosted by Canadian investment company Purpose Investments, the Purpose Bitcoin ETF is backed by 26,429.6 Bitcoins and has a management expense ratio of 1 percent.

2. CI Galaxy Bitcoin ETF (TSX:BTCX.B)

Company Profile

Assets under management: C$829.06 million

Launched in March 2021, the CI Galaxy Bitcoin ETF was born out of a partnership between cryptocurrency leaders Galaxy Fund Management and CI Global Asset Management. Galaxy Fund Management is part of Galaxy Digital, a diversified financial services firm with a focus on digital assets and the blockchain technology sector.

The ETF’s objective is to give investors exposure to Bitcoin via an institutional-quality fund platform, as its holdings are wholly Bitcoin and are kept in cold storage. At 0.4 percent, this fund boasts one of the lowest management fees of all the crypto funds on the market.

3. Fidelity Advantage Bitcoin ETF (TSX:FBTC)

Company Profile

Assets under management: C$575.6 million

The newest Bitcoin fund on this list, the Fidelity Advantage Bitcoin ETF, launched in November 2021. It offers the security of Fidelity’s in-house cold storage services for its holdings.

While it previously had a management fee of 0.4 percent, in line with the CI and Galaxy funds, the Fidelity Advantage Bitcoin ETF lowered it in January 2024 to an ultra-low management fee of 0.39 percent.

4. CI Galaxy Ethereum ETF (TSX:ETHX.B)

Company Profile

Assets under management: C$434.46 million

The CI Galaxy Ethereum ETF, another collaboration between CI and Galaxy, offers investors exposure to the spot Ethereum price through Ether holdings in cold storage. The fund launched on April 20, 2021, the same day as two of the other Ether ETFs on this list.

At the time, CI Global Asset Management suggested that “owning Ether is similar to owning a basket of early-stage, high-growth technology stocks.”

The CI Galaxy Ethereum ETF has notably low management fees of just 0.4 percent.

5. Purpose Ether ETF (TSX:ETHH)

Company Profile

Assets under management: C$350.6 million

The Purpose Ether ETF is a direct-custody Ether ETF that launched on April 20, 2021. This fund holds 98,079.44 Ether, which it stores in cold storage.

The Purpose Ether ETF offers investors exposure to the daily price movements of physically settled Ether tokens with a management fee of 1 percent.

6. Evolve Bitcoin ETF (TSX:EBIT)

Company Profile

Assets under management: C$246.24 million

Evolve ETFs partnered with cryptocurrency experts, including Gemini Trust Company, CF Benchmarks, Cidel Bank & Trust and CIBC Mellon Global Services, to launch the Evolve Bitcoin ETF. The fund, which holds its own Bitcoin, has a management fee of 0.75 percent.

Launched a week after the Purpose Bitcoin ETF, its holdings of Bitcoin are priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for Bitcoin denominated in US dollars.

7. 3iQ CoinShares Bitcoin ETF (TSX:BTCQ)

Company Profile

Assets under management: US$223.62‪ million

Launched in March 2021, the 3iQ CoinShares Bitcoin ETF tracks the price movement of Bitcoin in US dollar terms, and holds its Bitcoin assets in cold storage. This ETF has a management fee of 1 percent. Figures for this ETF were accurate as of September 30, 2024, according to the fund’s website.

8. Purpose Bitcoin Yield ETF (TSX:BTCY)

Company Profile

Assets under management: C$114.8 million

The Purpose Bitcoin Yield ETF uses a covered call strategy to generate yield for investors, which involves writing call options on Bitcoin. Call options give the buyer an option to purchase an asset at a specific price on or before a specific date.

Its structure allows the fund to earn income from option premiums while providing investors with exposure to Bitcoin’s price movements. Its distributions are paid monthly.

9. Evolve Ether ETF (TSX:ETHH)

Company Profile

Assets under management: C$74.32 million

The Evolve Ether ETF offers investors an easier route to investing directly in Ether. The fund’s holdings of Ether are priced based on the CME CF Ether-Dollar Reference Rate, a once-a-day benchmark index price for Ether denominated in US dollars. As with the Evolve Bitcoin ETF, the Evolve Ether ETF has a management fee of 0.75 percent.

10. Purpose Ether Yield ETF (TSX:ETHY)

Company Profile

Assets under management: C$63 million

Like the Purpose Bitcoin Yield ETF, the Purpose Ether Yield ETF offers investors an opportunity to invest in Ether while also generating yield. Purpose Investments lends a portion of its Ether holdings to institutional borrowers and earns interest on those loans.

Investors who purchase shares of this ETF receive a portion of the interest earned in monthly distributions.

11. 3iQ CoinShares Staking Ether ETF (TSX:ETHQ)

Company Profile

Assets under management: C$‪54.5 million

Following the success of its Bitcoin ETF, 3iQ Digital Asset Management launched its CoinShares Ether ETF in April 2021. This fund has a similar objective, offering exposure to Ether and its daily US dollar price movements. It also has a management fee of 1 percent.

Figures for this fund were accurate as of September 30, 2024, according to the fund’s website.

12. Evolve Cryptocurrencies ETF (TSX:ETC)

Company Profile

Assets under management: C$45.1 million

The Evolve Cryptocurrencies ETF launched in September 2021 as the first multi-cryptocurrency ETF, providing combined exposure to both Bitcoin and Ether.

This product from Evolve ETFs allows investors to diversify their crypto portfolios and provides indirect exposure to the two coins, weighing them by market capitalization and rebalancing its holdings on a monthly basis. Bitcoin makes up the majority of its portfolio.

While this ETF has no management fee, the underlying funds that hold both Bitcoin and Ether have management fees of 0.75 percent plus applicable taxes.

13. Fidelity Advantage Ether ETF (TSX:FETH)

Company Profile

Assets under management: C$20.7 million

Following the successful launch of its Bitcoin fund, Fidelity brought its Advantage Ether ETF to market in September 2022, making this the newest Ether ETF in Canada. Its holdings are stored in Fidelity’s in-house cold storage.

The Fidelity Advantage Ether ETF has a management fee of 0.4 percent.

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

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5 Best-performing Copper Stocks on the TSX in 2024

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Many Canadian copper stocks are performing strongly in 2024, thanks in part to several tailwinds for the sector this year.

Copper prices saw gains during the first half of the year, and supply concerns and rising demand caused the metal to surge to a record COMEX high on May 20, reaching US$5.20 per pound, or US$11,464 per metric ton (MT).

The price has since eased to US$4.37 per pound or US$10,296 per MT as of October 16, but remains elevated compared to 2023 prices.

Demand has remained strong due to energy transition sectors, but lower treatment charges from Chinese refiners during the first half of 2024 caused refiners to cut output. This bottlenecked the overall copper supply, introducing further pressure to the market.

Against that backdrop, how have TSX-listed copper companies performed? Learn about the top five best-performing copper stocks in 2024 by year-to-date gains below. Data for this article was retrieved on October 16, 2024, using TradingView’s stock screener, and only companies with market capitalizations greater than C$50 million are included.

1. Taseko Mines (TSX:TKO)

Company Profile

Year-to-date gain: 80.16 percent
Market cap: C$970.99 million
Share price: C$3.32

Taseko Mines is a copper producer and developer that holds a portfolio of assets in British Columbia, Canada, and Arizona, US. Its primary asset is the Gibraltar copper mine, which is located in Central BC.

Gibraltar is Canada’s second largest open-pit copper mine after Teck Resources’ (TSX:TECK.A,TECK.B,NYSE:TECK) Highland Valley mine. It boasts an 85,000 metric ton per day processing capacity, and in 2023 the mine produced 123 million pounds of copper.

On March 25, Taseko fully acquired Gibraltar after entering into an agreement with Dowa Metals and Mining (TSE:5714) and Furukawa (TSE:5715) to purchase the remaining 12.5 percent interest in the property. The company said the agreement was mutually beneficial as both Dowa and Furukawa are divesting away from copper-mining investments.

On June 1, Taseko suspended operations at Gibraltar for 18 days due to strike action from union workers. After approximately two weeks, the company and union came to terms on a new agreement, which the union ratified on June 19.

In the company’s second quarter 2024 financial and operational performance update released on July 31, Taseko reported that Gibraltar had produced 20.2 million pounds of copper during the quarter, an 8 percent decrease from Q2 2023. The total for the first two quarters came to 49.9 million pounds, 3.2 percent less than the 53.1 million pounds through the first six months of 2023.

A crusher relocation project and general maintenance at one of the mine’s concentrators, alongside the strike, were the cause for the decreased production in H1. According to the company, it expects production in the second half of the year to be stronger now that operations are back online.

The announcement also provided an update on development progress of Taseko’s Florence project; all key permits are now in place for commercial production and construction has commenced. The company expects the first production from the site in Q4 2025, with an annual copper production of 85 million pounds.

Shares of Taseko reached a year-to-date high of C$4.12 on May 21.

2. Hudbay Minerals (TSX:HBM)

Press ReleasesCompany Profile

Year-to-date gain: 74.66 percent
Market cap: C$4.86 billion
Share price: C$12.68

Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada. It also has projects in Peru and in the US.

According to Hudbay’s Q2 results, the Constancia copper mine and neighboring Pampacancha satellite pit in Peru produced a combined 19,217 metric tons of copper in the three months ending on June 30.

In Canada, Hudbay’s 75 percent owned Copper Mountain mine in BC produced 6,719 MT of copper, and its wholly owned Snow Lake operations in Manitoba produced 2,429 MT of copper despite forest fires causing interruptions at the Lalor mine. Both mines also produce gold and silver, and Snow Lake produces zinc as well.

In addition to its mining assets, the company is advancing its Copper World project in Arizona, US. In its report for the first quarter, the company indicates that it is continuing to work on getting final state permits for the site and expects to receive them sometime in 2024. When complete, Copper World is expected to have a 20 year life.

According to a March 28 annual reserve and resource update, Copper World holds proven and probable average grades of 0.54 percent copper from 385 million metric tons.

In an August 29 release, Hudbay announced it had received an aquifer protection permit from the Arizona Department of Environmental Quality. The company said the permit marks a key milestone and brings the project one step closer to being fully permitted.

The company is also working on its Mason project in Nevada, US. Hudbay is developing Mason as a long-term future asset, and expects it to have a 27 year mine life. A resource estimate shows measured and indicated resources of 2.22 billion MT at an average grade of 0.29 percent copper, and inferred resources of 237 million MT grading 0.24 percent copper.

On May 24, the company announced the completion of an upsized bought-deal offering, generating aggregate gross proceeds of US$402.5 million. The company said it intends to use the funds for near-term growth initiatives and to accelerate development at Copper Mountain.

Shares of Hudbay reached a year-to-date high of C$14.15 on May 21.

3. Alta Copper (TSX:ATCU)

Company Profile

Year-to-date gain: 72.22 percent
Market cap: C$53.89 million
Share price: C$0.62

Alta Copper is a copper exploration company that is working to advance its flagship Cañariaco project in Northern Peru. The project includes the Cañariaco Norte and Cañariaco Sur deposits and the Quebrada Verde prospect.

On May 15, the company released figures from an optimized preliminary economic assessment. In the report, the company indicates a base case pre-tax net present value of US$4.1 billion with an internal rate of return of 32.4 percent based on copper prices of US$4 per pound, along with all-in sustaining costs of US$1.96 per pound.

On the production side, Alta reported that the projected mine life is 27 years, with average annual metal production in the first 10 years of 347 million pounds of copper, 70,000 ounces of gold and 1.5 million ounces of silver.

The most recent announcement from the project came on October 10 when Alta announced its drill permit application was approved by the Ministry of Energy and Mines of Peru. The permit will allow the company to drill 42,400 meters in phases of 10,000 meters to be commenced prior to Q2 2025.

The company said the drill programs will be used to cross and fill recently identified zones of mineralization extending to depth in the Canariaco Norte deposit, which were not included in the current mineral resource estimate.

It also said it had received Certificates of Non-Existence of Archaeological Remains on Surface from the Ministry of Culture of Peru.

Shares of Alta reached their year-to-date high of C$0.79 on May 21.

4. Capstone Copper (TSX:CS)

Company Profile

Year-to-date gain: 66.9 percent
Market cap: C$7.9 billion
Share price: C$10.62

Capstone Copper is a mining company with a portfolio of assets in the US, Mexico and Chile.

Capstone’s wholly owned Pinto Valley copper mine in Arizona, US, is fully permitted until 2039 and is expected to produce 58,000 to 64,000 MT of copper in 2024. Capstone acquired Pinto Valley from BHP (ASX:BHP,NYSE:BHP,LSE:BHP) in 2013, and the mine has produced more than 4 billion pounds of copper since it began operating in 1972.

Capstone is the sole owner of the Cozamin copper-silver mine in Zecatacas, Mexico, which has a 1,000 MT per day throughput and is projected to generate 22,000 to 24,000 MT of copper in 2024. It also holds the Mantos Blancos copper mine in Antofagasta, Chile, which underwent an expansion in 2021 to extend its mine life significantly.

In addition, the company owns a 70 percent stake in the Mantoverde mine in the Atacama region of Chile, with the remaining 30 percent owned by Mitsubishi Materials (OTC Pink:MIMTF,TSE:5711).

Having first produced saleable copper concentrate from Mantoverde on June 25, the company achieved commercial production on September 21, with 30 consecutive days of 32,000 metric tons per day throughput.

In addition to activities at the Mantoverde mine, Capstone released an updated feasibility study for its Santo Domingo project, which is located 35 kilometers northeast of Mantoverde. The study indicated an after-tax net present value of US$1.7 billion, with an internal rate of return of 24.1 percent and a payback period of 3 years.

The figures were based on an annual copper production of 106,000 metric tons for the first seven years.

Shares of Capstone reached a year-to-date high of C$11.20 on May 17.

5. First Quantum Minerals (TSX:FM)

Press ReleasesCompany Profile

Year-to-date gain: 65.06 percent
Market cap: C$14.57 billion
Share price: C$17.86

First Quantum Minerals is a copper mining and development company with a global portfolio of assets.

Its primary asset is the Cobre Panama mine, located west of Panama City, Panama. The mine boasts 3 billion metric tons of proven and probable reserves and represents 1 percent of the world’s copper supply. The mine was ordered to close down in November 2023 after the Panamanian Supreme Court invalidated an extension to the mine’s license.

In a December 2023 release, the company said it was working on developing a closure plan for the mine; however, it also noted that it was pursuing all appropriate legal avenues to protect its investment and rights.

In its Q1 results, released on April 24, First Quantum said it was continuing to work on a preservation and safe management plan for Cobre Panama, and was also working to deliver the 121,000 metric tons of concentrate that remains on site.

Due to the ongoing situation in Panama, the company noted that it had undergone a refinancing program to improve its balance sheet and liquidity. This program included working out a prepayment agreement with Jiangxi Copper (SHA:600362,HKEX:0358) for US$500 million, the completion of a US$1.6 billion senior secured second lien at 9.38 percent due in 2029 and the issuance of 139.93 million common shares to raise US$1.15 billion.

In the company’s second quarter results, First Quantum reported the production of 102,709 metric tons of copper, down from 84,466 MT produced in Q2 2023. The production drop was largely attributed to the closure of Cobre Panama, which contributed 90,086 metric tons during the quarter last year.

The company is also operating several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine and Enterprise nickel mine. First Quantum noted that production may be impacted in 2024 due to severe drought conditions in Zambia caused by El Nino, which has reduced water levels in the Kafue and Zambezi rivers. The government declared a national emergency in March, and power generation in the country has been impacted.

First Quantum has been working to mitigate these challenges and has entered into offtake agreements with third-party traders for power sourced from the Southern African Power Pool. Due to increased power curtailments since the Q1 release, the company has had to increase the amount of power sourced from regional sources to 193 megawatts from the original 80 megawatts.

The increase has pushed the expected copper cash costs up to US$0.06 per pound from US$0.03 per pound. First Quantum says it will be able to sufficiently substitute curtailed power with imports for the duration of the emergency. The energy deficit is expected to ease with Zambia’s next rainy season, with hydro generation recovering by early 2025.

Shares of First Quantum reached a year-to-date high of C$20.00 on May 21.

FAQs for investing in copper

Is copper a good investment in 2024?

Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper’s price has climbed to new all time highs in 2024, bringing many stocks with it.

Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.

What is copper used for?

Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.

Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.

How to invest in copper?

Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.

For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange.

How to invest in a copper ETF?

Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.

In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.

There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).

How is copper priced?

The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.

How is copper processed?

Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.

The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.

Where is copper mined?

Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.

Article by Dean Belder; FAQs by Lauren Kelly.

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

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

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How Would a New BRICS Currency Affect the US Dollar? (Updated 2024)

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The BRICS nations, originally composed of Brazil, Russia, India, China and South Africa, are looking to establish a new reserve currency backed by a basket of their respective currencies.

All eyes are on the upcoming 2024 BRICS Summit taking place October 22 to 24 in Kazan, Russia. The BRICS nations are expected to continue their discussions of creating a potentially gold-backed currency as an alternative to the US dollar.

The potential BRICS currency would allow these nations to assert their economic independence while competing with the existing international financial system. The current system is dominated by the US dollar, which accounts for about 90 percent of all currency trading. Until recently, nearly 100 percent of oil trading was conducted in US dollars; however, in 2023 one-fifth of oil trades were reportedly made using non-US dollar currencies.

Central to this ongoing situation is the US trade war with China, as well as US sanctions on China and Russia. Should the BRICS nations establish a new reserve currency, it would likely significantly impact the US dollar, potentially leading to a decline in demand, or what’s known as de-dollarization. In turn, this would have implications for the United States and global economies.

During the first US Presidential Debate between former President Donald Trump and current Vice President Kamala Harris on September 10, Trump doubled down on his recent pledge to impose strict tariffs on nations seeking to move away from the US dollar as the global currency. He is taking a particularly strong stance against China, threatening to slap 60 percent to 100 percent tariffs on Chinese imports if elected.

It’s still too early to predict when a BRICS currency will be released, but it’s a good time to look at the potential for a BRICS currency and its possible implications for investors.

In this article:

Why do the BRICS nations want to create a new currency?

The BRICS nations have a slew of reasons for wanting to set up a new currency. Recent global financial challenges and aggressive US foreign policies have prompted the BRICS countries to explore the possibility. They want to better serve their own economic interests while reducing global dependence on the US dollar and the euro.

When will a BRICS currency be released? There’s no definitive launch date as of yet, but the countries’ leaders have discussed the possibility at length. During the 14th BRICS Summit, held in mid-2022, Russian President Vladimir Putin said the BRICS countries plan to issue a ‘new global reserve currency,’ and are ready to work openly with all fair trade partners.

In April 2023, Brazilian President Luiz Inacio Lula da Silva showed support for a BRICS currency, commenting, “Why can’t an institution like the BRICS bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries? Who decided that the dollar was the (trade) currency after the end of gold parity?”

In the lead up to the 2023 BRICS Summit last August, there was speculation that an announcement of such a currency could be on the table. This proved to be wishful thinking, however.

‘The development of anything alternative is more a medium to long term ambition. There is no suggestion right now to creates a BRICS currency,’ Leslie Maasdorp, CFO of the New Development Bank, told Bloomberg at the time. The bank represents the BRICS bloc.

South Africa’s BRICS ambassador, Anil Sooklal, has said as many as 40 countries have expressed interest in joining BRICS. At the 2023 BRICS Summit , six countries were invited to become BRICS members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. All but Argentina officially joined the alliance in January 2024.

In recent years, the US has placed numerous sanctions on Russia and Iran. The two countries are working together to bring about a BRICS currency that would negate the economic impacts of such restrictions, according to Iranian Ambassador to Russia Kazem Jalal, speaking at a press conference during the Russia–Islamic World: KazanForum in May 2024.

Some experts believe that a BRICS currency is a flawed idea, as it would unite countries with very different economies. There are also concerns that non-Chinese members might increase their dependence on China’s yuan instead. That said, when Russia demanded in October 2023 that India pay for oil in yuan, India refused to use anything other than the US dollar or rupees. Russia is struggling to use its excess supply of rupees.

What would the advantages of a BRICS currency be?

A new currency could have several benefits for the BRICS countries, including more efficient cross-border transactions and increased financial inclusion. By leveraging blockchain technology, digital currencies and smart contracts, the currency could revolutionize the global financial system. Thanks to seamless cross-border payments, it could also promote trade and economic integration among the BRICS nations and beyond.

A new BRICS currency would also:

Strengthen economic integration within the BRICS countriesReduce the influence of the US on the global stageWeaken the standing of the US dollar as a global reserve currencyEncourage other countries to form alliances to develop regional currenciesMitigate risks associated with global volatility due to unilateral measures and the diminution of dollar dependence

How would a new BRICS currency affect the US dollar?

RomanR / Shutterstock

For decades, the US dollar has enjoyed unparalleled dominance as the world’s leading reserve currency. According to the US Federal Reserve, between 1999 and 2019, the dollar was used in 96 percent of international trade invoicing in the Americas, 74 percent in the Asia-Pacific region and 79 percent in the rest of the world.

According to the Atlantic Council, the US dollar is used in approximately 88 percent of currency exchanges, and 59 percent of all foreign currency reserves held by central banks. Due to its status as the most widely used currency for conversion and its use as a benchmark in the forex market, almost all central banks worldwide hold dollars. Additionally, the dollar is used for the vast majority of oil trades.

Although the dollar’s reserve currency share has decreased as the euro and yen have gained popularity, the dollar is still the most widely used reserve currency, followed by the euro, the yen, the pound and the yuan.

The potential impact of a new BRICS currency on the US dollar remains uncertain, with experts debating its potential to challenge the dollar’s dominance. However, if a new BRICS currency was to stabilize against the dollar, it could weaken the power of US sanctions, leading to a further decline in the dollar’s value. It could also cause an economic crisis affecting American households. Aside from that, this new currency could accelerate the trend toward de-dollarization.

Nations worldwide are seeking alternatives to the US dollar, with examples being China and Russia trading in their own currencies, and countries like India, Kenya and Malaysia advocating for de-dollarization or signing agreements with other nations to trade in local currencies or alternative benchmarks.

While it is unclear whether a new BRICS currency would inspire the creation of other US dollar alternatives, the possibility of challenging the dollar’s dominance as a reserve currency remains. And as countries continue to diversify their reserve holdings, the US dollar could face increasing competition from emerging currencies, potentially altering the balance of power in global markets.

However, a recent study by the Atlantic Council’s GeoEconomics Center released in June 2024 shows that the US dollar is far from being dethroned as the world’s primary reserve currency. ‘The group’s ‘Dollar Dominance Monitor’ said the dollar continued to dominate foreign reserve holdings, trade invoicing, and currency transactions globally and its role as the primary global reserve currency was secure in the near and medium term,’ reported Reuters.

Ultimately, the impact of a new BRICS currency on the US dollar will depend on its adoption, its perceived stability and the extent to which it can offer a viable alternative to the dollar’s longstanding hegemony.

Will BRICS have a digital currency?

BRICS nations do not as of yet have their own specific digital currency, but a BRICS blockchain-based payment system is in the works, according to Kremlin aide Yury Ushakov in March 2024. Known as the BRICS Bridge multisided payment platform, it would connect member states’ financial systems using payment gateways for settlements in central bank digital currencies.

The planned system would serve as an alternative to the current international cross-border payment platform, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, which is dominated by US dollars.

“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,” Ushakov said in an interview with Russian news agency TASS.

How would a BRICS currency impact the economy?

A potential shift toward a new BRICS currency could have significant implications for the North American economy and investors operating within it. Some of the most affected sectors and industries include:

Oil and gasBanking and financeCommoditiesInternational tradeTechnologyTourism and travelThe foreign exchange market

A new BRICS currency would also introduce new trading pairs, alter currency correlations and affect market volatility, requiring investors to adapt their strategies accordingly.

How can investors prepare for a new BRICS currency?

Adjusting a portfolio in response to emerging BRICS currency trends may be a challenge for investors. However, several strategies can be adopted to capitalize on these trends.

Invest in commodities like gold and silver as a hedge against currency risk.Gain exposure to BRICS equity markets through stocks and ETFs that track BRICS market indexes.Consider alternative investments such as real estate or private equity in the BRICS countries.

Prudent investors will also weigh these strategies against their exposure to market, political and currency fluctuations.

In terms of investment vehicles, investors could consider ETFs such as the iShares MSCI BIC ETF (ARCA:BKF) or the Pacer Emerging Markets Cash COW 100 ETF (NASDAQ:ECOW). They could also invest in mutual funds such as the T. Rowe Price Emerging Markets Equity Fund, or in individual companies within the BRICS countries.

Simply put, preparing for a new BRICS currency or potential de-dollarization requires careful research and due diligence by investors. Diversifying currency exposure, and investing in commodities, equity markets or alternative investments are possible options to consider while being mindful of the associated risks.

Investor takeaway

While it is not certain whether the creation of a BRICS reserve currency will come to pass, its emergence would pose significant implications for the global economy and potentially challenge the US dollar’s dominance as the primary reserve currency. This development would present unique investment opportunities, while introducing risks to existing investments as the shifting landscape alters monetary policy and exacerbates geopolitical tensions.

For those reasons, investors should closely monitor the progress of a possible BRICS currency. And, if the bloc does eventually create one, it will be important watch the currency’s impact on BRICS member economies and the broader global market. Staying vigilant will help investors to capitalize on growth prospects and hedge against potential risks.

FAQs for a new BRICS currency

Is a BRICS currency possible?

Some financial analysts point to the creation of the euro in 1999 as proof that a BRICS currency may be possible. However, this would require years of preparation, the establishment of a new central bank and an agreement between the five nations to phase out their own sovereign currencies; it would most likely also need the support of the International Monetary Fund to be successful internationally.

The impact of its war on Ukraine will continue to weaken Russia’s economy and the value of the ruble, and China is intent on raising the power of the yuan internationally. There is also a wide chasm of economic disparity between China and other BRICS nations. These are no small obstacles to overcome.

Would a new BRICS currency be backed by gold?

While Russian President Vladimir Putin has suggested hard assets such as gold or oil, a new BRICS currency would likely be backed by a basket of the bloc’s currencies.

That said, speaking at this year’s New Orleans Investment Conference, well-known author Jim Rickards gave a detailed talk on how a gold-backed BRICS currency could work. He suggested that if a BRICS currency unit is worth 1 ounce of gold and the gold price goes to US$3,000 per ounce, the BRICS currency unit would be worth US$3,000, while the dollar would lose value compared to the BRICS currency as measured by the weight of gold.

Importantly though, he doesn’t see this as a new gold standard, or the end of the US dollar or the euro.

“(With) a real gold standard, you can take the currency and go to any one of the central banks and get some gold,” Rickards said at the event. “With BRICS they don’t have to own any gold, they don’t have to buy any gold, they don’t have to prop up the price. They can just rise on the dollar gold market.

How much gold do the BRICS nations have?

As of Q2 2024, the combined central bank gold holdings of the original BRICS nations plus Egypt (the only nation of the five new additions to have central bank gold reserves) accounted for more than 20 percent of all the gold held in the world’s central banks. Russia, India and China rank in the top 10 for central bank gold holdings.

Russia controls 2,335.85 metric tons (MT) of the yellow metal, making it the fifth largest for central bank gold reserves. China follows in the sixth spot with 2,264.32 MT of gold and India places eighth with 840.76 MT. Brazil and South Africa’s central bank gold holdings are much smaller, coming in at 129.65 MT and 125.44 MT, respectively. New BRICS member Egypt’s gold holdings are equally pauce, at 126.57 MT.

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

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ASML Lowers 2025 Guidance, Triggering Chip Stock Losses

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Netherlands-based semiconductor equipment giant ASML Holding (NASDAQ:ASML) experienced its largest single-day share price drop since 1998 after sharing a weaker-than-expected 2025 forecast.

The company plummeted about 16 percent on Tuesday (October 15) after releasing its Q3 report and guidance for next year. Its results were published a day earlier than expected due to a technical error.

CEO Christophe Fouquet said in a press release that ASML expects total net sales of 30 to 35 billion euros next year, which is in the lower half of the range mentioned at the company’s 2022 investor day.

‘While there continue to be strong developments and upside potential in artificial intelligence (AI), other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected,’ he said.

ASML, which is known for supplying lithography machines to semiconductor manufacturers such as Taiwan Semiconductor Manufacturing Company (NYSE:TSM), Intel (NASDAQ:INTC) and Samsung (KRX:005930), said its customers currently have a cautious mindset due to the market dynamics outlined by Fouquet.

Total net sales for Q3 came in at 7.5 billion euros, slightly beating expectations; however, net bookings for the quarter were reported at just 2.6 billion euros, significantly below market forecasts of 4 to 6 billion euros.

ASML’s share price decline weighed on other tech stocks that have benefited from the surge in demand for advanced chips, but are now facing potential headwinds if chipmakers scale back investments.

Several semiconductor manufacturers have delayed capital expenditure plans due to lower-than-expected demand in consumer electronics and smartphones. Intel previously announced major workforce cuts geared at helping it save US$10 billion in 2025, affecting orders for ASML’s lithography tools. Similarly, memory chipmakers have shifted their focus from expanding capacity to improving technological efficiency, contributing to fewer orders for new systems.

ASML has also faced limitations in selling its most advanced lithography tools to China due to US-led export controls.

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

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