Well done.Big day for my two ASX African gold plays -
https://www.barchart.com/stocks/quo...&sym=PRU.AX&grid=1&height=500&studyheight=100
https://www.barchart.com/stocks/quo...&sym=WAF.AX&grid=1&height=500&studyheight=100
So the below chart starts at 20 June 2019 when POG broke above long term resistance, and indexes the price of silver with gold. I deliberately stopped it at 4 March 2020 as had we not had the benefit of hindsight, then silver looks to have got the jump on gold on a decent uptrend. Alas, it was very shortlived.I am not much of a chartist and I agree with rederob, that the starting point makes a huge difference to the relative performance of two instruments. But I saw the Gold and Silver performance displayed on a website amongst other commodities and currencies, so decided to post it below:
View attachment 102572
Not just me:I see $2000 as a staging point to nearer $3000 over the next 3 years.
This is one of the problems of mining investments in some foreign nations.Uh oh
Thin end of the wedge perhaps? Tin foil hats all round?
1. As the dust settles over equity markets, investors will come to realise that massive debt burdens will need to be unwound before overall profitability returns.
2. I therefore see the second half of 2020 being exceptionally strong for gold prices.
and, a report the Chinese partners in Porgera aren't too pleasedUh oh
Thin end of the wedge perhaps? Tin foil hats all round?
ABC has obtained a copy of a letter sent this week to the Prime Minister from the chairman of the Zijin Mining Group, Jinghe Chen. In it, Mr Jinghe describes the decision not to grant the lease extension as "shocking" and that he is "saddened" by the impact it will have on employees and locals. The letter outlines that Zijin is "one of the largest metal mining companies in China, with operations in 12 countries", where he says the company makes significant economic and social contributions.
Mr Jinghe writes that Zijin had "great confidence in PNG's mining sector" when it invested in Barrick Niugini Limited in 2015. "Zijin has invested hundreds of millions of dollars in Porgera mine and the investment is one of China's largest in PNG," the letter reads.
I'm more on board with the deflation view, or maybe deflation then high inflation some time later.... maybe.1. That you mentioned 'equity markets', I am taking that to mean debt burdens held by listed companies. You seem to be implying that the cost of capital (debt) is somehow going to impede profitability? With the cost of debt at historical lows, how do you come to that conclusion? To support that conclusion, really you are stating that demand will remain at or close to current levels. This could be due to the massive spike in unemployment. So potentially, companies profitability could be impacted.
Zero consumer spending however is not inflationary, it is deflationary. Companies declaring bankruptcy is deflationary. Gold does not do well in a deflationary environment.
Last week's COT:
View attachment 103158
View attachment 103159
Still no Commercial support for either. Gold went pretty much nowhere this week. This rather suggests that this week's COT will show a similar picture to last week's.
jog on
duc
1. I'm more on board with the deflation view, or maybe deflation then high inflation some time later.... maybe.
I took on some physical last year and was considering more this year, but I'm going to hold off. My view is that it will get hammered at some point this year and I reserve the right to change my opinion at any time.
(This view excludes trades in paper derivatives)
There is hundreds of people buying and selling gold and silver on another online forum similar to this one everyday. Nearly everything that gets put up for sale gets sold for above spot price. Then there is non stop selling on other online platforms like ebay, gumtree and market place on facebook. So it does get back into the market sometimes. On the hand there are hoarders of gold and and silver. They just buy and rarely sell. My Mother was one these people and then when she passed it was my job to sell her precious metals. Since that time I have got into buying and selling gold and silver as a hobby. There is not many hobbies out there where you can actually make a profit out of doing what you like doing.Is it just me or is this type of gold never going back to the market until deaths or financial ruin knock on the door?I do not expect to ever see people rushing to offload their physical bullions and this may place a floor on the POG.
This is true but something very fundamental has happened. The bullion shops where some of us buy our silver have sold out all of their bars and coins. Premiums have gone up from $4 to $5 an oz to $9 and $10 an oz. There is a huge backlog of orders that they can not make delivery of for 2 Months or more. As soon as anything comes into the bullion shops it is sold immediately. In December 19 I bought a 10 oz Silver Bullion Coin for $286, yesterday I sold it $399. The problem is there is not much physical metal available in the bullion shops and this has caused the premiums to balloon upwards. The less there is of something the more people seem to want it. So in fact, selling any bullion that I have now is more profitable than anytime in the last 3 years.Silver doing nothing. Not even back above the March high.
1. This is true but something very fundamental has happened.
2. The bullion shops where some of us buy our silver have sold out all of their bars and coins. Premiums have gone up from $4 to $5 an oz to $9 and $10 an oz. There is a huge backlog of orders that they can not make delivery of for 2 Months or more. As soon as anything comes into the bullion shops it is sold immediately. In December 19 I bought a 10 oz Silver Bullion Coin for $286, yesterday I sold it $399. The problem is there is not much physical metal available in the bullion shops and this has caused the premiums to balloon upwards. The less there is of something the more people seem to want it. So in fact, selling any bullion that I have now is more profitable than anytime in the last 3 years.
It may or may not be. I don't care as all I do is buy and sell it at a profit and it works for me. I have been doing this for quite some time.I simply consider that as the 'Toilet Roll' effect.
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