casabanker
28 Oct 2015
Re: Gold and silver will be resurgent Hello Rhigos,Good to hear from you and hope you are well. I didn't give any timescale as to when any correction or collapse may occur but I feel something could well happen over the next 12 to 24 months. As an aside, I see that Portugal has had an election and voted in a radical party that is intent on leaving the EZ and it is only the President that is stopping them from taking office. If Portugal leave the EZ and maybe even the EC, then that could be a trigger for a wholesale collapse. I feel it will not take much to cause a domino effect in financials and I don't think the European banks are as well insulated as the EZ and ECB like to think. The correlation between gold and the US dollar is a little complex but I agree that when the dollar is strong as it is currently, that usually weakens the gold price due to the fact that it is priced in dollars. Although I have shown a weakness for the world economy, my main concern is for the UK. We have debt of £1.5 trillion rising to £2 trillion and if you add on public service pensions commitments the figure rises to £8 trilliion. Debt is five times GDP and due to the strong GBP the balance of payments is dire Forgive me for repeating myself but if there is a run on the pound, it will weaken causing capital flight. The only way to plug the gap is to print more money. That's where inflation could well kick in. The bubble in the bond market will burst due to capital flight and of course the equity market will also suffer. That's just one threat. We saw what happened when the Yuan was deliberatly weakened. The US equity market is very expensive currently. We all know what happens when they sneeze. I don't know what will bring about a collapse and maybe nothing will. If we carry on with low interest rates and continue racking up debt both privately and publicly, it will not be a good ending.My plan is to buy physical gold and store it in Singapore.Casa.
Larry_the_Lock
28 Oct 2015
Re: Gold and silver will be resurgent Not while they are manipulated by corrupt governments !
Rhigos
28 Oct 2015
Re: Gold and silver will be resurgent casabanker,Your views are similar to what mine were a while back when I bought RRS, however gold price has fallen. Today there was an interesting jump up at 13:50 but sadly from 18
0 it has fallen sharply and is still falling. At 18:35 was 1156. The thought that interest rates may rise in USA has had a negative effect on gold.It would seem that people are putting their money and borrowed money into housing. It is property prices that are going up not precious metals. I have been putting more money into house builders. My biggest investment in construction shares is PSN that I have been building up since 2009. Now my second largest shareholding at 5.4% of total portfolio valuation.I have heard stories that China's central bank have bought more gold for their reserves while prices low, than they have disclosed. Several central banks have increased their gold reserves.I continue to hold 6 precious metal miners but apart from FRES that I traded quite a lot they are all showing losses. I continue to hold as a hedge but there seems to be little chance of even modest inflation for a long time.
casabanker
28 Oct 2015
Gold and silver will be resurgent I think we are on the cusp of another bull market for precious metals. There is little or no appetite for the US, the UK or any other country to raise interest rates. That's not surprising when you consider the Chinese removing the dollar peg to weaken the Yuan, the continuance of QE in Japan and the EZ. This has the effect of exporting deflationary tendencies so any country raising their interest rate would effectively strengthen their currency and hurting their export performance. It makes them less competitive. However, if a currency is continually weakended in a country with a huge debt pile, it has the effect of increasing the burden. The world total debt is in the region of $50 trillion - that's $50,000 billion. The UK owes £1.5 trillion, rising to £2 trillion by 2020. The last time I saw, the US owes around $16 trillion. Does anyone think we are in a better or worse position than 2008?The UK is performing well, with the best growth in Europe. There's nothing to worry about. The GBP is strong and that keeps a lid on inflation as import prices are low. If you look at the balance of trade and the current account, the figures are dire. They have to be balanced and that is achieved by foreign investment. The UK is perceived as a safe haven and 10 year bonds pay a very low return due to demand. As you may be aware, an event out of the UK's power to control could easily upset this happy but risky position. An interest rate increase in the US, a sudden burst of inflation, ...... another financial collapse. The latter could be terminal for the GBP. The only tool in the central bank's armoury is QE. That may well be enough in the short term but we all know what happened to the Weimark Republic. Wheelbarrow currency or to be more up to date, helicopter money. The UK's debt pile is five times our GDP. The US is three times theirs. Debt was caused by the banks and financial institutions investing in dodgy assets. The various governments bailed out the banks and took on that debt on to their own balance sheets. In order to service that debt, interest rates have stayed low. What heve we done since the crash? Low interest rates have fuelled even more debt. Do we ever learn? Am I right or am I wrong. Is there a case for precious metals to rise in value?
Rhigos
18 Sep 2015
AngloGold and Randgold Come Together AngloGold and Randgold Come Together to Revive Obuasi Mines[link]
Rhigos
18 Sep 2015
Bloomberg comments on Rangold [link] Europe, equity markets opened lower after the decision. The least punished of the indices was the U.K.'s FTSE - helped in part by Randgold, which rose with gold prices and comments from CEO Mark Bristow.
II Editor
18 Sep 2015
NEW ARTICLE: Fed doves keep investors guessing "So, the Federal Reserve lost its bottle and decided to keep US interest rates unchanged. It was hardly a surprise, and, as is often the case with heavily-hyped decision days, the immediate response by markets has been something of a ..."[link]
itssoconfusing
16 Sep 2015
Re: Just survive drop TTBought into RRS today, should be one of the great survivors of the sector.itsso...
tornadotony
02 Sep 2015
Just survive drop [link] think they held on by fingernails on last day.
tornadotony
01 Sep 2015
FTSE 100 Relegation Zone [link] tipped to go down as two new stocks expected to enter FTSE 100.Major fall is likely for Randgold with PE adjustment to FTSE 250 company. Likely drop could be 800 points. TT
tornadotony
29 Aug 2015
Randgold to likely to stay in FTSE 100 No other FTSE 250 company has moved into automatic promotion. Rightmove is within a frction of a percent to overtake Randgold but no other company has made much progress. Barring a major fall on Tuesday, Randgold should retain its position.Between now and Christmas it needs to move back up to the 4300 range as it will only take 3 FTSE 250 companies to perform well and move up say 8-10% and Randgold would be relegated at the next review if they stay 3900-4000 or slip lower.
armature
25 Aug 2015
PMs rigging [link]
tornadotony
20 Aug 2015
Problem with Randgold to note [link] 3920p Randgold was just 3 places away from automatic relegation from FTSE 100. It certainly needs this rally as not to join Weir Group. If another company in FTSE 250 gets automatically promoted Randgold has to battle above the FTSE 98th share place.Any demotion is quite damaging for Randgold. A risk to be aware of. Review date is 2 September. TT
tornadotony
06 Aug 2015
RNS gives 58 Cents per share They have $109M in cash which is less than CEY and Acacia but more than most other miners. Q2 was a 6 cents beat on target. Overall it should hold above 3600. Who knows when gold will recover.
weblogic
01 Aug 2015
Re: The Greek malaise other global iss... I think the plan is to very slowly increase rates over the coming couple of years, to maybe 2% or so... This may not bounce the markets, but might set them back say 5% if other data starts to show reactions.. ie, jobs data and trade deficit numbers..etc..RRS is supposedly on a high multiple, so doesn't come cheap...but is rated a strong business, so I understand..Rises in rates should cause Gold to decline, I believe... I think the market has pencilled in a low of maybe $1000 oz How that pans out remains to be seen..As you say, debt is a big imponderable...it does seem the Yanks can just keep brushing this under the table. Printing money...?Maybe the strong $ is providing the handle that keeps the US economy in check..The other factor supporting the Yanks is low energy costs.. I strongly suspect that trade deal with Iran was more about nailing down Oil prices than about Irans nuclear threats...The Yanks are doing trade deals at present, and I guess they hope to boost there trade...I see Mr Obama is touring Africa trying to drum up business..Other political issues could trigger market volatility....like the Greek crash... if that comes.I see the IMF have signalled big concerns, so we`ll see how that runs..Unless some fundamental restructuring within the EU happens, its bound to continue to cause major jitters..Other factors in the global scene are simmering just below the surface...
