In Asia-Pacific markets Japan's Nikkei 225 stock index fell by 7% after the Bank of Japan said it would raise its interest rates to the highest level in 16 years. In the U.S., the Nasdaq stock index went down by 3.4% last week because of companies like Amazon and Nvidia. This was the worst three-week period for tech stocks since September 2022.

Last week's decrease in stock prices was partly because companies didn't earn as much money as expected, and there were fewer jobs and more people out of work. The U.S. Federal Reserve decided to keep its interest rates the same and didn't promise to lower them in September like many people thought they would. Regulator preferred to combat inflation with higher interest rate despite of historic high records of national debt interest spending.

World wide inflation in Euro and USD-linked zones lowers consumer spending, which in turn leads to lower revenues and corporate profits and consequently to Stock market downturn. Moreover, the uncertainty associated with stagflation can lead to increased market volatility. Surprisingly, even Gold prices went down slightly (some -0,72%) indicating that cash is king and fiat cash account is better than anything else, while normally one could expect Gold to be considered as a safe haven. for those running from shares and bonds. 

As of mid-2022, the global economic landscape is characterized by high inflation rates, interest rate fluctuations, and geopolitical uncertainties, all of which traditionally increase the appeal of gold as a safe-haven asset. For an accurate and educated forecasting of future prices the following shall be monitored:

• Economic Conditions: With central banks potentially tightening monetary policy to combat inflation there is less business opportunities left open for an investor. Conventional instuments loose its attractiveness. Although the opportunity cost of holding non-yielding assets rise the persistent inflation fuels demand for gold.

• Geopolitical Tensions: Ongoing geopolitical tensions (e.g., Russia-Ukraine conflict, US-China relations) typically boost gold prices as investors seek safety.

• Fiat Currencies Fluctuations: Gold is mainly traded in US Dollars. Hence, the value of the American fiat currency inversely affects gold prices. A weaker USD makes gold cheaper for other currency holders, increasing its demand.

• Market Demand: Demand from central banks, investors, and industries (especially technology and jewelry) influences gold prices. Trends suggest strong investment demand in uncertain times.

Considering these factors, gold prices are expected to remain relatively high but volatile, with potential increases if geopolitical or economic instability intensifies.

According to the latest long-term forecast, published by CoinPriceForecast.Com, Gold price will hit USD 2,500 per Troy Oz by the end of 2024 and then USD 2700 by the middle of 2025. Gold will rise to $3,000 within the year of 2027, $3,500 in 2028, $4,000 in 2030 and $5,000 in 2034.

Bitcoin halving is an event that occurs approximately every four years, during which the reward for mining new blocks on the Bitcoin blockchain is halved. This means that miners receive half the amount of Bitcoin for verifying transactions and adding them to the blockchain.

The purpose of Bitcoin halving is to control the supply of new Bitcoins entering circulation and to maintain the scarcity of the cryptocurrency. As the reward for mining decreases, the potential for inflation decreases as well, which can help maintain the value of Bitcoin over time.

The first Bitcoin halving occurred in November 2012, when the block reward was reduced from 50 BTC to 25 BTC. The second halving occurred in July 2016, reducing the block reward to 12.5 BTC. The most recent previous Bitcoin halving took place in May 2020, reducing the block reward to 6.25 BTC. On April 19, 2024 the reward for each block of mined bitcoin was cut in half yet again to 3.125 BTC 

Bitcoin halving events typically generate a lot of attention and speculation in the cryptocurrency community, as they can have an impact on the price of Bitcoin. Some analysts believe that the halving events contribute to Bitcoin's price appreciation, as the reduced supply of new coins entering the market can lead to increased demand and higher prices.

Generative AI models forecasts the following events:

• Price Increase: Historically, Bitcoin halving events have been associated with a significant increase in the price of the cryptocurrency. This is due to the reduction in the rate at which new Bitcoins are created, leading to a decrease in the supply of the digital asset.
  
  

• Change in Miner Profitability: With the reduction in the block reward following the halving, miners may experience a decrease in their profitability. This could lead to a consolidation of mining power in the hands of larger, more efficient mining operations and relocations of data centers to regions with a lower electricity price.
  
  

• Market Volatility: As with any major event in the cryptocurrency space, the Bitcoin halving is likely to result in increased volatility in the market. Traders and investors should be prepared for significant price swings in the days and weeks following the halving event.
  
  

• Adoption and Interest: The Bitcoin halving event is likely to attract increased attention from mainstream media, investors, and the general public. This could lead to a further increase in adoption and interest in Bitcoin and other cryptocurrencies.
  
  

Overall, the Bitcoin halving in April 2024 is expected to have a significant impact on the cryptocurrency market, with potential consequences of short term devaluation against fiat and then long term price increases accompanied with market volatility. Investors should carefully monitor the market leading up to and following the halving event to make informed decisions about their holdings.

Geological Overview

Regional Geology:

1. • The Copperbelt region lies within the Lufilian Arc, a geological feature formed during the Pan-African orogeny. The arc is characterized by a series of folded and faulted sedimentary rocks, which host extensive copper and cobalt mineralization.

   • Copper deposits are primarily stratabound, occurring within the Katanga Supergroup's sedimentary sequences. The Lower Roan Group, in particular, is renowned for its rich copper sulfide ore bodies, predominantly chalcocite and bornite.

Types of Deposits:

1. • Sediment-Hosted Stratiform Deposits: These are the most significant and economically viable types in the Copperbelt. They typically occur as tabular, bedded deposits in sandstone, shale, and carbonate rocks.

   • Supergene Enrichment: Secondary enrichment processes have upgraded many primary sulfide deposits, creating rich zones of copper oxide minerals near the surface, which are easier to extract and process.

The Copperbelt region of Zambia is renowned for its rich and diverse mineral deposits. While copper is the dominant resource, the area is also home to several other economically significant minerals. Here are the key minerals that may be mined in the Copperbelt area:

Cobalt

• Associated with Copper Deposits: Cobalt is often found in conjunction with copper in the Copperbelt, particularly within the same ore bodies.

• Economic Importance: Cobalt is crucial for rechargeable batteries, especially in electric vehicles and electronic devices.

Nickel

• Associated Mineral: Although less abundant than copper and cobalt, nickel deposits are present and can be economically viable.

• Usage: Nickel is used primarily in stainless steel production and various alloys.

Zinc and Lead

• Occurrence: These minerals can be found in the sediment-hosted stratiform deposits, though they are not as predominant as copper.

• Industrial Applications: Zinc is used for galvanizing iron and steel, while lead has applications in batteries and radiation shielding.

Precious Metals

• Gold: Gold occurrences are often associated with copper deposits in the Copperbelt region.

• Silver: Typically found as a byproduct of copper mining.

Manganese

• Regional Deposits: The Copperbelt also has notable manganese deposits, particularly in areas adjacent to the copper mines.

• Usage: Manganese is essential in steel production and other industrial applications.

Uranium

• Byproduct: Uranium can be found as a byproduct of copper and cobalt mining.

• Nuclear Industry: It is used as fuel for nuclear reactors and in various industrial applications.

Iron Ore

• Occurrences: Iron ore deposits, although less significant than copper, are present in the region and contribute to the mining sector.

• Applications: Iron ore is crucial for steel manufacturing.

Gemstones

• Emeralds and Other Gemstones: Zambia is also known for its gemstone deposits, particularly emeralds, which are found in areas adjacent to the Copperbelt.

• Market Value: Gemstones are significant for both domestic and international markets.

Potential and Opportunities

Vast Mineral Reserves:

1. • Zambia’s Copperbelt holds some of the largest copper reserves in the world. The region has been a major copper producer for decades, with extensive untapped deposits still available for exploration and development.

Increasing Global Demand:

1. • The global shift towards renewable energy and electric vehicles is driving unprecedented demand for copper, essential for electrical wiring and components. This trend is expected to continue, boosting the economic viability of copper exploration and mining projects.

Technological Advancements:

1. • Advances in exploration technologies, such as geophysical surveys, remote sensing, and geochemical analysis, have enhanced the ability to locate and evaluate new mineral deposits. These technologies enable more efficient and accurate exploration in the Copperbelt.

Government Support and Regulatory Environment:

1. • The Zambian government has recognized the importance of the mining sector to the economy and is actively working to attract foreign investment. Recent regulatory reforms aim to create a more favorable and transparent environment for mining operations, reducing risks and encouraging exploration activities.

Infrastructure Development:

1. • The Copperbelt region benefits from relatively well-developed infrastructure, including transportation networks, power supply, and water resources, which are crucial for large-scale mining operations.

Challenges and Considerations

Regulatory and Political Risks:

1. • While Zambia has made strides in improving its regulatory framework, political and economic stability remains a concern for investors. Consistent and transparent mining policies are essential to maintain investor confidence, especially those without strong local support.

Environmental and Social Impacts:

1. • Mining activities can have significant environmental impacts, including land degradation, water pollution, and biodiversity loss. Responsible mining practices, including thorough environmental impact assessments and sustainable resource management, are critical to mitigate these effects.

Skills and Expertise:

1. • The mining industry requires a skilled workforce and technical expertise. Investing in education and training programs to develop local talent is vital for the sustainable growth of the mining sector.

Future Outlook

The geologic exploration potential of Zambia’s Copperbelt is immense and remains one of the most promising regions for copper mining in the world. As the global demand for copper continues to rise, driven by the green energy transition and technological advancements, the Copperbelt is well-positioned to attract significant investments in exploration and mining.

The Copperbelt region of Zambia is a mineral-rich area with a wide array of valuable resources. Copper and cobalt dominate the mining activities, reflecting the region's historical and economic significance in the global mining industry. However, the presence of other minerals like nickel, zinc, lead, gold, silver, manganese, uranium, and iron ore, as well as gemstones, enhances the region's geological diversity and economic potential.

As exploration technologies advance and global demand for these minerals increases, the Copperbelt's role as a major mining hub is likely to expand, driving economic growth and development in Zambia. Sustainable mining practices and strategic investments in infrastructure and workforce development will be essential to fully leverage the region's mineral wealth.

To fully realize this potential, a collaborative approach involving the government, private sector, and local communities is essential. Transparent and consistent regulatory frameworks, investment in infrastructure and skills development, and commitment to environmental sustainability will be key factors in unlocking the Copperbelt's mineral wealth.

With strategic investments and responsible mining practices, Zambia’s Copperbelt can continue to be a major contributor to the global copper supply, driving economic growth and development in the region for years to come.

Geological Overview

East Africa:

1. • Great Rift Valley: Extending from the Red Sea down through Ethiopia, Kenya, Tanzania, and Mozambique, the Great Rift Valley is a geological marvel. This tectonic plate boundary is characterized by extensive volcanic activity, leading to rich deposits of rare earth elements, gemstones, and geothermal energy resources.

   • Cratons and Greenstone Belts: The Tanzanian Craton, for example, is an ancient geological formation rich in gold and diamonds. Greenstone belts, which are typically found within these cratons, contain significant amounts of gold and base metals such as nickel and copper.

South Africa:

1. • Bushveld Complex: Known as the largest layered igneous complex in the world, the Bushveld Complex is incredibly rich in platinum group metals (PGMs), chromium, vanadium, and other minerals. It supplies a significant portion of the world's PGMs, essential for automotive catalytic converters and various industrial applications.

   • Witwatersrand Basin: Famous for being one of the largest gold-producing regions globally, this basin has also produced significant quantities of uranium. The gold deposits are primarily found in ancient conglomerate reefs, formed over two billion years ago.

   • Karoo Basin: This sedimentary basin holds vast coal reserves and has potential for unconventional gas resources, including coalbed methane and shale gas.

Potential and Opportunities

• Mineral Diversity: The geological diversity of East and South Africa means a wide variety of minerals can be explored. These range from precious metals like gold and platinum to industrial minerals and rare earth elements essential for modern technology.

• Technological Advancements: Modern exploration technologies, such as remote sensing, geophysical surveys, and advanced drilling techniques, have significantly improved the ability to locate and assess mineral deposits. These technologies are particularly beneficial in regions like East Africa, where access and infrastructure can be challenging.

• Untapped Reserves: Many areas within East and South Africa remain under-explored. Political stability and improved regulatory frameworks in countries like Tanzania, Mozambique, and Zambia are creating a more favorable environment for foreign investments in geologic exploration.

• Economic and Infrastructure Development: Investment in exploration and mining can drive substantial economic growth, creating jobs, and improving infrastructure. The development of transport networks, power supply, and other essential services can benefit local communities and stimulate broader economic activity.

Challenges and Considerations

• Regulatory and Political Risks: While some countries in the region have made significant strides in improving their mining regulations, political instability and regulatory uncertainty can still pose risks to investors. Transparent and consistent regulatory frameworks are crucial for attracting and sustaining investment.

• Environmental and Social Impacts: Mining activities can have significant environmental and social impacts. Responsible exploration and mining practices are essential to minimize these effects, including thorough environmental impact assessments, sustainable resource management, and community engagement.

• Infrastructure Limitations: In many parts of East Africa, infrastructure remains underdeveloped. Poor transport links, limited access to power, and inadequate water supply can hinder exploration and mining operations. Investment in infrastructure is essential to unlock the full potential of the region's mineral resources.

• Skill and Expertise Shortages: The mining industry requires a skilled workforce and technical expertise. Developing local talent and investing in education and training programs are vital to support the growth of the sector and ensure sustainable development.

Future Outlook

The geologic exploration potential of East and South Africa is immense. As global demand for minerals continues to rise, driven by technological advancements and the transition to a green economy, the region's rich and diverse mineral resources will play an increasingly important role. Strategic investments in exploration, infrastructure development, and sustainable practices will be key to unlocking this potential.

Governments, private sector players, and international investors must collaborate to address challenges and create an enabling environment for geologic exploration. With the right policies and investments, East and South Africa can harness their geological wealth to drive economic growth and development, benefiting both the region and the global economy.

Holding funds in physical Gold has its pros and cons. Among them are the following: 

Pros:

• Tangible Asset: Physical possession provides a sense of security and protection from voluntary actions of a government (compared to fiat instruments).

• No Counterparty Risk: Ownership of physical gold eliminates risk associated with financial institutions.

• Privacy: Over the counter transactions can be private and untraceable (although large amounts con verted into fiat will be easily discovered by authorities).

Cons:

• Storage and Security: Safeguarding physical gold can be costly and inconvenient.

• Liquidity: Selling physical gold might not be as quick or efficient as trading securities. Some traders will require melting the metal at certified refinery of their choice, which also inflates the transaction costs.

• Premiums and Markups: Buying physical gold often involves higher premiums and transaction costs. Purchasing it shall be done only from a trusted party procuring the metal's purity who charge their fees.

There is an alternative for acquiring and keeping physical Gold - metal-backed Securities (equity traded funds (ETFs), Mutual Funds, Gold Certificates and Stocks etc.). 

Pros:

• Liquidity: Easily traded on regulated stock exchanges, providing quick access to cash.

• Convenience: No need for physical storage, seller reliability, purity or security concerns.

• Diversification: Exposure to a variety of gold-related investments (e.g., mining companies) within one security.

Cons:

• Counterparty Risk: Reliance on financial institutions introduces some risk.

• Management Fees: ETFs and funds usually charge fees, which can erode returns over time.

• Indirect Ownership: Investors do not own physical gold but rather a legal representation of it.

For both physical Gold and regulated securities backed by it there is an alternative - Gold-Backed Cryptocurrencies, such as PAX Gold (PAXG), Tether Gold (XAUT) and others that offer a centralized digital asset backed by physical Gold deposited reserves.

Pros:

• Digital Convenience: Easy to trade and transfer, combining the benefits of gold and cryptocurrency - usually lower transaction fees compared to regulated securities markets.

• Transparency: Blockchain technology ensures transparency in transactions and holdings at a level as good as regulatged markets.

• Fractional Ownership: Investors can buy small fractions of gold lots, thereby making it accessible to a broader range of investors.

Cons:

• Regulatory Risks: Cryptocurrency markets face evolving regulatory landscapes, which can impact gold-backed tokens. In prospective it may lead to higher associated costs, more strict declaring requirements etc.

• Security Concerns: Despite blockchain security, digital assets are vulnerable to hacking and cyber threats as they require no legal intermediaries for transfer and usually block-chain transactions are irreversible.

• Market Volatility: Cryptocurrencies are known for their price volatility caused by Governmental actions and compomised Crypto-Exchanges, which can also affect gold-backed tokens despite the underlying asset's stability.

Conclusion

Investing in gold, whether through physical assets, securities, or cryptocurrencies, offers a hedge against economic and geopolitical uncertainties. Each investment form has its advantages and drawbacks, suited to different investor preferences and risk tolerances.

• Gold Bars and Coins: Suitable for those valuing tangible assets and privacy, willing to manage storage and liquidity issues.

• Gold-Backed Securities: Ideal for investors seeking liquidity, convenience, and diversification without the hassle of physical storage.

• Gold-Backed Cryptocurrencies: Appeals to tech-savvy investors who appreciate digital convenience and fractional ownership but are aware of regulatory and security risks.