Close menu




June 21st, 2023 | 08:20 CEST

Financial System 3.0 saved? Deutsche Bank, Defiance Silver and Nvidia - Artificial Intelligence conquers the banking world!

  • Mining
  • AI
  • Silver
  • Banking
Photo credits: pixabay.com

We cannot help but feel a little uneasy when we see the capabilities of Artificial Intelligence, even as mere users, as demonstrated, for example, by ChatGPT. However, Big Data and related analysis tools have been used by large IT companies for years and accompany our daily lives in the background. Currently, the behaviour of financial institutions and the actions of central banks are of particular interest. They must pull out all the stops to smooth out the distortions caused by inflation, war and the interest rate explosion. A tried and tested means in the past was the creation of liquidity, but that is no longer working. Where do the opportunities for investors lie?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: DEUTSCHE BANK AG NA O.N. | DE0005140008 , DEFIANCE SILVER CORP. | CA2447672080 , NVIDIA CORP. DL-_001 | US67066G1040

Table of contents:


    Karim Nanji, CEO, Marble Financial
    "[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial

    Full interview

     

    High interest rates, little growth

    A dangerous situation has now arisen in the capital markets. Due to high inflation, the central banks were forced to implement several interest rate hikes. First and foremost, the US Federal Reserve, which has now carried out 10 consecutive rate hikes. A small surprise was noticeable last week, however, as the US Fed paused its rate hike program at 5.00% to 5.25%. Nevertheless, the so-called Fed dots did not correct significantly, indicating that the market still expects smaller rate increases in 2023, reaching around 5.6% according to the median projection. The Fed members remain hawkish, although quite a few economists had thought it possible that interest rates would not be raised but maybe even lowered this year.

    It remains questionable who can afford this high interest rate level because both companies and public budgets have their backs to the wall. Should capital market interest rates correct upwards, the risk for the American banking sector would be almost unbearable since, in this case, there would be the threat of massive write-offs on the already battered bond portfolios. As a reminder: In March 2022, the key interest rate was still just above the zero line. In order to justify all this, the Fed must remain optimistic about the economy, but the important indicators are pointing more to a recession. For example, the Philadelphia Producer Index is at a low of -13.70 points, and the much-watched Chicago Purchasing Managers Index is also on high alert, with a decline from 47.0 to 40.4. This further weakens the US dollar at 1.093 to the euro, bringing gold and silver back into focus. A wait-and-see attitude still prevails here at USD 1,954 and USD 23.9, respectively, but this should not be the case for much longer.

    Defiance Silver - Good news from Mexico again

    Those still underweight in precious metals should look closer at the Canadian junior Defiance Silver (DEF). The Company is developing several silver projects in Mexico, especially in the Fresnillo Belt. Here, more than 6.2 billion ounces of silver have historically been mined, representing about 10% of global silver production. The focus of the Canadians is the flagship project San Acacio, which is located in the middle of the Zacatecas Silver district.

    San Acacio already has an initial resource estimate of 16.9 million ounces of silver and now has new results from 4 of 10 targets drilled. Drilling has encountered the highest grade and broadest mineralization ever drilled on the property. Highs reached as much as 157.30 g/t silver at 41.83 m, including 15.96 m at 379.90 g/t AG. Within this interval is also a 26 cm sub-interval with a bonanza grade of 5510 g/t AG or 6014 g/t silver equivalent. Defiance is encouraged by these results, which confirm the hypothesis that further high-grade mineralization is present in the Veta Grande.

    Chris Wright, Chairman & CEO, comments: "We are extremely encouraged by the continued success of our drilling campaigns at the San Acacio Project. As a result of careful target acquisition and modelling work leading to several successful phases of drilling, our technical team has demonstrated the continued potential to outline a large mineral system within the historic San Acacio mine area on the Veta Grande vein system.".

    Currently, DEF shares are moving sideways between CAD 0.15 and CAD 0.17. The debt-free company still has a good CAD 5 million in cash and can intensify its explorations. With a market capitalization of less than CAD 40 million, you will not find a comparably cheap silver company with such rich resources. Collect!

    Deutsche Bank and Nvidia - Partnership in Artificial Intelligence

    On the expiration date last Friday, Deutsche Bank suffered significant losses, falling from EUR 9.85 to EUR 9.35. In contrast, the US technology company Nvidia reached a new all-time high of USD 426. With a market value of USD 1.05 trillion, Nvidia has now entered the Hall of Fame of "trillion dollar companies". There are many indications that the boom in Artificial Intelligence (AI) and, specifically, Nvidia's solutions will continue to receive significant attention.

    Deutsche Bank had already considered the AI topic in 2022 and announced a multi-year innovation partnership with Nvidia. With AI and parallel established machine learning, the aim is to accelerate the digitalization and modernization of the financial services sector. With Deutsche Bank's financial expertise and Nvidia's leading position in AI and accelerated computing, various AI-enabled and regulatory-compliant services will be created. The new partnership will also benefit Deutsche Bank's cloud transformation.

    "Artificial intelligence, machine learning and the use of data will fundamentally change banking. Our partnership with NVIDIA is further evidence that we are committed to harnessing these opportunities for the benefit of our clients," said Christian Sewing, CEO of Deutsche Bank.

    The partnership was preceded by several months of preparation: the companies tested several potential use cases, particularly in three areas: the development of risk models, high-performance computing and the design of a virtual avatar. To enable customers to experience Deutsche Bank in a whole new way, Deutsche Bank is working with Nvidia-Omniverse Enterprise. This is an open computing platform for the development and operation of metaverse applications as well as various AI services. With it, lifelike virtual assistants and digital avatars can be developed. What a new banking world!

    While the Nvidia share is still seen as having potential, Deutsche Bank has failed to reach its resistance at EUR 10.50 for the time being.

    The history of recommendations for the Nvidia share always points upwards. Meanwhile, the median price target of 49 experts is USD 446, with 41 analysts issuing a buy recommendation. Source: Refinitiv Eikon from 19.06.2023

    The DAX blue-chip index is now stuttering at its old high of around 16,300 points. What is striking about this upward movement is that it is only supported by a small number of stocks worldwide. Such situations have already occurred historically. Therefore, caution is advised with technology stocks, while increasing investments in gold and silver stocks may appear to be a good hedge.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by André Will-Laudien on July 9th, 2025 | 07:25 CEST

    1,000 tanks for NATO - another 150% with armaments and gold? Rheinmetall, Dryden Gold, Hensoldt, and RENK in focus

    • Mining
    • Gold
    • Defense
    • Investments

    The news hit like a bombshell. NATO plans to deploy up to 1,000 modern main battle tanks along its eastern flank. Amid growing tensions with Russia and against the backdrop of the ongoing war in Ukraine, the defense alliance is sending a clear signal of deterrence. The plan is part of a comprehensive rearmament program to strengthen what is called "Forward Defense." Germany, Poland, and other Eastern European member states, in particular, are set to serve as logistical and operational hubs. It is not just about tanks; ammunition, spare parts, and maintenance infrastructure are also to be built up on a large scale. In addition, the defense sector will see investments of over EUR 1 trillion over the next decade. Reason enough for the next price explosion at Rheinmetall and Co. Security is also likely to be the reason for the impressive gold rally since the beginning of the year. Where will it end?

    Read

    Commented by Fabian Lorenz on July 9th, 2025 | 07:10 CEST

    Almonty Industries: The NASDAQ countdown is on! Everyone wants a piece of the Tungsten Gem!

    • Mining
    • Tungsten
    • Defense
    • Investments

    The countdown to Almonty's IPO on the NASDAQ is underway. The reverse split took place on Friday, and further details were released yesterday. A capital increase of around 10% is being supported by renowned banks. The fresh capital is intended to be used to extend the value chain. This move should enable Almonty to consolidate its position as the most important tungsten supplier in the West. The share price is responding with a spectacular rise. In addition, Europe appears to be slowly awakening to the issue of critical raw materials. Almonty stands to benefit from this as well. The outlook for this tungsten gem remains bright. The share price performance is more than just FOMO; it is based on geopolitical and operational fundamentals.

    Read

    Commented by André Will-Laudien on July 8th, 2025 | 07:20 CEST

    Attention: Critical Metals as Future Boosters! thyssenkrupp, Power Metallic, Hensoldt, and Nordex

    • Mining
    • Lithium
    • CriticalMetals
    • Defense
    • renewableenergies

    The start of the second half of the year is bringing new record highs, but volatility remains high. The stock markets are currently in turmoil, with prices changing direction almost daily. This is driven by new headlines about trade tariffs, geopolitical power games, and the question of global security. While the world is currently focused on armed conflicts, a key issue is increasingly coming to the fore for stock market traders: critical metals. These raw materials, ranging from rare earths and copper to gallium and titanium, are the backbone of modern technologies, green transformation, and military strength. In the defense industry, shortages of critical metals could now become a strategic risk, a fact that many still underestimate. Western industrialized nations are therefore increasing efforts to secure raw material sources and reduce their dependence on geopolitically fragile suppliers. Where are the new high-yield champions for your portfolio?

    Read