Wall Street analysts expect Reliance (RS) to post quarterly earnings of $2.80 per share in its upcoming report, which indicates a year-over-year increase of 26.1%. Revenues are expected to be $3.38 billion, up 8.2% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a comp ...

Core Insights - The stablecoin market is currently dominated by USD-pegged stablecoins, which account for approximately 99% of the total market capitalization of over $306 billion, despite the emergence of alternative models [6][19] - The collapse of algorithmic stablecoins like TerraUSD has led to a cautious approach towards purely algorithmic models, with a shift towards stability through real liquidity and cross-chain reliability [1][7] - There is growing interest in diversified stablecoin designs, such as those pegged to baskets of currencies or commodities, as a means to reduce reliance on the U.S. dollar [8][14] Stablecoin Models - Algorithmic stablecoins have faced significant scrutiny following high-profile failures, leading to a preference for models that utilize collateral and liquidity [1][7] - Non-USD stablecoins have struggled to gain traction, with only three in the top fifty by market cap, highlighting the dominance of USD in the stablecoin ecosystem [3][6] - Tether's Alloy, a token over-collateralized with gold, represents an attempt to diversify away from the dollar, but has not gained significant popularity, with a fully diluted valuation of under $50 million [8][9] Market Dynamics - The dollar remains the primary reserve currency, but its long-term dominance is increasingly questioned, with geopolitical factors pushing discussions around de-dollarization [4][19] - The stablecoin market's reliance on USD is partly due to inertia and convenience, as institutions find it easier to adopt familiar USD-pegged models [5][19] - The potential for basket-pegged stablecoins to provide more stability in volatile markets is recognized, especially in countries with high inflation [14][15] Future Outlook - There is a belief that as political tensions rise, the trust in the dollar may decline, potentially leading to greater de-dollarization and a more diverse stablecoin landscape [18][19] - The success of alternative stablecoin models will depend on market acceptance and the ability to provide long-term stability over short-term convenience [19][20] - The evolution of stablecoins may lead to a coexistence of USD-backed and local stablecoins, balancing global liquidity with local monetary needs [20][21]

Core Insights - Tether has emerged as a significant player in the gold market, holding 116 tons of gold as of September 30, making it the largest single holder of gold outside of major central banks [2][3][5] - The surge in gold prices this year, which increased by approximately $2000, coincided with Tether's accelerated gold purchases, indicating a potential influence on market dynamics [5][7] - Tether's strategy involves supporting two different tokens with gold reserves, reflecting a complex motivation behind its gold acquisition [10][13] Group 1: Tether's Gold Holdings and Market Impact - Tether's gold holdings are valued at around $14 billion, comparable to the official reserves of countries like South Korea and Hungary [3][5] - In Q3, Tether purchased about 26 tons of gold, accounting for 2% of global gold demand during that period and 12% of known central bank purchases [3][8] - The demand from Tether is believed to have tightened supply in the short term and influenced market sentiment, potentially driving speculative investments into gold [5][11] Group 2: Future Projections and Regulatory Challenges - Tether plans to purchase approximately 100 tons of physical gold by 2025, supported by an expected profit of nearly $15 billion this year [8][9] - The recent passage of the GENIUS Act, which prohibits stablecoin issuers from using gold as reserve assets, raises questions about Tether's increasing gold reserves despite regulatory constraints [10][14] - Tether's ambition to promote tokenized gold as a viable alternative to fiat-backed cryptocurrencies reflects a long-term vision, despite current market challenges [13][14] Group 3: Risks and Speculative Nature of Gold - The intertwining of cryptocurrency and traditional safe-haven assets like gold introduces risks, particularly if stablecoin demand reverses, leading to potential sell-off pressures on gold reserves [11][12] - The volatility of cryptocurrencies contrasts with the perceived stability of gold, raising concerns about the speculative nature of gold as an investment in the current market environment [11][12] - Tether's approach to tokenized gold aims to address the challenges faced by retail investors in holding physical gold, but demand for such products remains limited [13]

Core Insights - Tether, a major stablecoin issuer, has emerged as a significant buyer of gold, holding 116 tons valued at approximately $14 billion, making it the largest single holder of gold outside of central banks [1][3][5] - Tether's gold purchases have influenced gold prices, contributing to a 56% increase in gold prices in 2025, with its buying activity aligning closely with price surges [3][5] - The intertwining of cryptocurrency and traditional safe-haven assets like gold raises concerns about potential market volatility and the risk of speculative bubbles in gold [3][7] Group 1: Tether's Gold Holdings and Market Impact - As of September 30, Tether's gold holdings are comparable to the official reserves of countries like South Korea and Hungary, with its purchases accounting for 2% of global gold demand in Q3 [1][5] - Tether's gold buying activity has increased significantly, with its purchases representing 14% of central bank gold purchases in Q2 and 12% in Q3 [5][6] - The demand from Tether is expected to continue, with plans to purchase an additional 100 tons of gold by 2025, supported by its projected profits of nearly $15 billion this year [5][6] Group 2: Regulatory and Strategic Considerations - Tether's strategy involves using gold to back two different tokens, USDT and Tether Gold (XAUt), with a total of 116 tons of gold in reserves [6][10] - The recent GENIUS Act prohibits stablecoin issuers from using gold as reserve assets, yet Tether has increased its gold reserves, raising questions about its long-term strategy [6][10] - Tether's ambition to create a gold-backed cryptocurrency aims to provide a more accessible way for retail investors to hold gold, despite current regulatory challenges [10][11] Group 3: Speculative Risks and Market Dynamics - The relationship between gold and cryptocurrencies reflects concerns over currency devaluation, but the volatility of cryptocurrencies poses risks to the stability of gold as a safe-haven asset [7][11] - Jefferies predicts increased demand for gold from the stablecoin sector, but the unpredictable nature of the crypto market could lead to significant pressure on gold prices if demand shifts [7][11] - Tether's efforts to promote a gold-backed value exchange system face skepticism, particularly regarding the transparency and security of its gold reserves [11]

Financial Performance - Net sales for Q2 2025 reached $3.66 billion, marking a 5.0% increase from Q1 2025 and a 0.5% increase year-over-year [2][5] - Non-GAAP gross profit margin was reported at 29.9%, slightly up from 29.7% in Q1 2025 [7] - Pretax income increased by 16% from Q1 2025 to $304.3 million, while net income attributable to Reliance was $233.7 million, up 17% year-over-year [2][34] - Earnings per share (EPS) for Q2 2025 was $4.42, an 18% increase from Q1 2025 [2][34] Sales and Market Dynamics - The company sold a record 1,615.0 thousand tons in Q2 2025, a 4.0% increase year-over-year, despite a 0.9% decline from Q1 2025 [5][9] - Average selling price per ton sold increased by 6.1% compared to Q1 2025, exceeding the company's guidance [6][7] - Demand for non-residential construction, the largest end market, improved, and is expected to remain healthy in Q3 2025 [10] Cash Flow and Capital Allocation - Cash flow from operations was $229.0 million in Q2 2025, reflecting a significant increase of 255% from Q1 2025 [16] - The company repurchased $79.9 million of common stock in Q2 2025, with a total of $143.0 million returned to shareholders through dividends and share repurchases [18][17] Business Outlook - Reliance anticipates a seasonal decline in tons sold of 1.0% to 3.0% in Q3 2025 compared to Q2 2025, but an increase of 3.0% to 5.0% compared to Q3 2024 [19] - The company expects average selling prices in Q3 2025 to remain stable, with potential fluctuations in carbon steel and aluminum prices [19]