Dear Wealth Daily reader:
For the second day in a row COMEX September copper rose to an all time high this morning touching $1.738 per pound.
Copper prices continue to climb as the labor strike at the Phoenix-based mining company Asarco, that has been going on for over five weeks, continues to feed supply concerns.
Investment fund buying has driven copper prices up over 16 percent from the start of the year.
Palladium Soon to be in Demand
Many analysts feel that the demand for palladium, platinum’s little brother, is soon going to rise.
In a conference call with precious metals analysts, Stillwater Mining president and CEO, Frank McAllister commented on "dwindling" palladium inventories.
McAllister explained that the Defense of Department logistical palladium stockpile is being sold off. He also believes that the automotive industry has depleted its stockpile.
Chinese jewelry manufacturers are using palladium to manufacture all types of jewelry at an astounding rate.
Over the past two and a half year palladium prices have been relatively flat. But as demand for the metal grows the price will inflate.
The Pentagon to Buy Body Armor for 500,000
The Department of Defense is actively seeking new body armor for 500,000American troops.
For the second time since the Iraq war began, the Pentagon is replacing body armor for U.S. troops in Afghanistan and Iraq, citing the need for better protection that can withstand the strongest of attacks from insurgents.
The effort would upgrade the protection used by more than 500,000 soldiers as well as civilian employees and news reporters.
The current replacement is expected to take several more months to complete.
Pentagon spokesman Paul Boyce said Saturday, "Obviously, the body armor is manufactured and tested to exceptionally high standards. This is not the type of technology that is readily available from a local hardware store. It’s very exact.
"But as new technologies emerge, the Army works aggressively with the commercial industry to develop, test and produce the best possible equipment for our soldiers. Members of Congress have been briefed, and they have been fully supportive," he said of the latest replacement effort.
The new armor weighs about 18 pounds, about one pound heavier than the original plates, and consists of thicker plates that could shield soldiers against stronger attacks.
No specific companies were mentioned in the statement released by the Pentagon over the weekend. However, the DOD said that the upgrades will cost at least $160 million.
Jacksonville-based Armor Holdings announced last week that the company received a contract worth $14.4 million to provide ceramic body armor.
The order is drawn from a $66 million indefinite delivery/indefinite quantity contract already in place.
This leaves $94 million open for competitors such as DHB.
Recently body armor stocks have taken a hit. But as the conflict with Iran intensifies, more orders are certain to be coming in to protect US troops.
Worldwide gasoline prices
Think gasoline is expensive in your town? Try filling up in Amsterdam.
While gasoline prices in the United States have recently hit record highs they are actually much lower than in many countries.
Drivers in some European cities are paying nearly 3 times more than those in the U.S.
In a few Latin America and Middle-East nations where oil is produced by government-controlled companies, local gasoline prices are kept low as a benefit to the nation’s citizens.
At a measly 12 cents, it’s almost worth it to drive to Venezuela to fill up your tank.
– Luke Burgess