The S&P 500 was the best performer (up 1.8%) amid a stronger than expected jobs report from the U.S.

Prices of mainstream metals (except nickel) remained flat as well. Nickel prices, which have been very volatile in the past few weeks, dropped 2.5% last week, after reporting a 7% gain in the prior week. Nickel demand is driven by batteries, but the recent price volatility is primarily due to drastic changes in inventory levels, primarily on the SHFE (Shanghai).

As noted last week, due to vaccine hesitancy, vaccination rates decline significantly once a country reaches the 60% mark. We believe governments worldwide have to come up with initiatives to encourage more vaccinations.

Gold and silver remain well positioned for H2-2021. Central banks have started increasing their gold purchases, and the trend is expected to continue (see chart below) amid the global economic recovery.

Last week, Canadian cannabis stocks underperformed relative to their U.S. peers due to positive developments for the U.S. medical cannabis sector.

On June 29, 2021, the California Senate approved a bill to legalize possession of psychedelics.

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Companies Mentioned:

Azarga Uranium Corp., Eskay Mining Corp., South Star Battery Metals, White Rock Minerals Ltd., American Manganese Inc., Vista Gold Corp., Chatham Rock Phosphate, TAAT Global Alternatives Inc., Kontrol Technologies Corp., Diginex Limited