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To generate above average capital appreciation of its investments through a selective portfolio of securities and other instruments in the precious metals, diamond and uranium sectors.
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Since the last update Fortuna have completed their acquisition of Roxgold for approximately CA$1.1 billion ($0.9 billion) which will have an impact on GPM's top ten holdings. It will be interesting to see if GPM have retained the sizeable combined holding in Fortuna Silver Mines Inc, although I suspect it will have reduced and profits redistributed.
https://www.mining.com/fortuna-silver-to-buy-roxgold-in-884-million-deal/
https://ca.movies.yahoo.com/fortuna-roxgold-shareholders-approve-business-223000020.html
Silver exposure from holdings slightly reduced in favour of precious metal (PGM) producers, base metals and gold.
https://ncim.co.uk/wp/wp-content/uploads/2021/07/CQS-New-City-GPPM-June-2021.pdf
Inflation remains a focus for investors driven by better-than-expected economic recoveries, especially in developed markets whose post-Covid recoveries have lagged that of China.
Whilst generally positive for gold and commodities in the long run, there are some conflicting short-term implications, notably with regards to central banks’ monetary policy response as they consider shifting towards a tightening bias. The US Fed are now more openly discussing possible tapering of its US$120bn per month bond purchases and indicated that a rate increase may be appropriate in 2023, earlier than previously guided.
A strengthening of the US dollar index, which firmed around 3% over the month after FOMC minutes broached the subject of tighter monetary policy, weighed on gold, which declined around 7.2% over the month.
However, the declines occurred despite physically backed ETF holdings, which have typically been a marginal driver of the gold price, remaining static over the month and when assessed against the historic correlation with 10-year TIPS, the sharp US$130/oz decline during the month may represent a short-term correction.
The extent to which inflationary pressures are “transitory” will continue to have a significant bearing on monetary policy, and central banks may find it difficult to fine tune actions to counter potentially stubborn underlying inflation risks resulting from a combination of rising wages and pent-up demand.
In other aspects, policy actions may help spread pressures over a longer period. In this regard, China’s inflationary concerns prompted authorities to restrict speculative trading and release small quantities of base metals from the nation’s strategic reserves in order to dampen near-term inflationary pressures.
Elsewhere, Russia has expanded export tariffs to encompass nickel and aluminium in addition to some soft commodities in its efforts to limit domestic raw material inflation. Similarly, food prices have also risen sharply, prompting governments such as Brazil and Russia to restrict exports.
The World Gold Council released its 2021 central bank survey, which indicated 68% of participants recorded higher holdings than five years ago, pointing to likely further additions as a “buffer against balance of payment crises”. Gold currently makes up 16% of central bank reserves.
During the month the Fund participated in placings by ASX-listed Ora Banda and Firefinch, reinvesting proceeds from the sale of Wheaton Precious Metals.
I topped up today on the belief that Gold & Silver are rebounding , added 7500 at 51.17p - seemed rude not to at 8.5% discount to NAV! Strangely my buy is showing as a sell - tradingview charts suggest many smaller buys going through since 22nd. I wonder what the true Buy:Sell ratio is for the last few days?
I've received and read the March factsheet for an open ended fund, Amati Strategic Metals. There appears to be some interesting read through for GPM.
First off, the Amati fund is new and small at £8m.
The "Strategic" part of the fund name relates to the fact that they can invest, strategically, in any metals that take their fancy. At the moment they think copper is overpriced so they have none. They also think that gold and silver producers are the place to be at this time.
The fund has 15% cash, 52% gold, 12% silver.
The second point of interest is a chart that plots columns to show the premium/discount of a number of gold producers to the implied spot price of gold. The average shows that the price of producers has ranged between a 22% discount and a 12% premium. The average is currently at a 20% discount. Current valuations of the producers would be in balance with gold valued at $1360.
The chart lacks detail regarding the time period, however, it is clear that gold producers are currently at a discount to the price of gold; removing this discount would require a 20% increase in the price of the producers.
If the Amati team's analysis is correct, it is, in my view, very positive for GPM.
Also on the share prophets website:
“ Golden Prospect: Chairman Opens His Wallet – and you should too!”
http://tinyurl.com/3kczam25
It'll be share prophet s
what site is this from?
https://www.*************.com/views/55124/golden-prospect-fy20-numbers-released-still-a-buy-shares-will-double-in-value
The gold/silver ratio, which reached an all-time-high of 124x in March, moved back to 80x as at 27 July, which is still at the upper end of typical trading ranges over the last 50 years.
The Golden Prospect Precious Metals fund now holds 25.6% in silver to benefit from the rebalancing in the gold / silver ratio.
Silver demand in industrial use is increasing, primarily electronics, which stands to be a beneficiary of the 5G build-out and general reopening of the global economy. It is also used in photovoltaic solar cells and as a catalyst to produce hydrogen for fuel cells, making it an essential element and beneficiary of “green” focused fiscal stimulus proposed by the ECB and the Biden administration.
https://ncim.co.uk/wp/wp-content/uploads/2021/02/CQS-New-City-GPPM-January-2021.pdf
Bargain. I topped up at 44p yesterday. I like that they added a bunch of silver miner exposure.
It's that time again!
Gold clearly out of favour but we are currently trading at more than a 20% discount to NAV. This represents a clear buying opportunity for any investors with even a passing ability to be just a little bit patient. ;)
Pms are taking a backseat whilst Crypto’s are in the Limelight, Even I. Dyed in the wool Goldie have made a few nice gains on the crypto’s spread betting, unfortunately Private’s no longer allowed to deal in crypto’s since Friday. Still it was good while it lasted, today we are seeing the consequences of bitcoins free range as more buyers are trying to cash out. I personally think left alone bitcoin would replace dollars but it was never going to be left alone to become the death to The USAs Means of having the rest of the world prop up a broken and bankrupt country. I think when the dust settles all the crypto money will find its way into Precious metals. Predict $3000 oz by this time next year. Anyway enough cliches from me Onward to £1 or more gla
as if all the metal shares are going to excel over the near and hopefully longer future
30 th November if you had not exercised any sub shares you owned or sold in the market they became worthless. The 5% rise must be a the market realising these are at a way to large discount to NAV. Not aware they have been given authority to purchase and cancel shares. Anyway onward prospectors.
If you only recently bought GPM you won't have any sub shares unless you bought them on market separately
I bought into GPM a few months ago and received nothing from my broker (Tilney) about exercising any sub offering. To be honest I was not fully aware of what it was until the chat on the forums. Should I have contacted my broker with instructions?
With gpm trading at such a discount to NAV would it not be sensible for managers to use some of the new funds to purchase own shares. The underlying assets are available ar a discount in gpm share price.
Also mentioned in Money Week, Gpm picked as most likely to benefit from commodities super cycle. Can possibly see this as trading at a premium to NAV by mid 2021, possibly even bagging. Much better to let the professionals run the slide rules rather than trying to wean nuggets of truth from a mountain of lies. Definition of a gold miner, “a liar standing next to a hole in the ground”.
JPM says resumption of super cycle underway led by developing countries. Main beneficiaries are oil and industrial metals, but PM's not far behind particularly with dollars demise. I suggest you hitch your wagon to copper or nickle miners although the yield on some oilers demands a second glance.
Today's RNS gives details of the sale of unexercised subscription shares:
10,336,782 have been sold for £4.77m. That's 12% of the full share count.
If my maths is correct, that equates to 46.14p each. It doesn't look as though holders who failed to exercise their subscription shares will get anything.
Hopefully, the buyers of the rump will be long term holders, however, I doubt if that will be the case. I suspect they'll look to dump their new shares fairly promptly in order to get a profit around 5%-10%. Why wouldn't they want to make that sort of return in a week?
If my view is correct, I think this will hold the shares back in the short term.
only 2/3rds of subs taken up this means the nav is better than if all the diluted subs were acquired. Think this will go to 55p without any increase in underlying holdings, although with the last two days gold increases factored in it should really be trading at about 57 to 58p Time will tell if I'm right. Long term this is the main play in gold futures.
Correction to 14:23 post penultimate line
' paying prices greater than reflected in gpm share price '
Have recently sold other stocks to make cash available for subscription, £40k. Have until tomorrow with Barclays to decide. Had eye on MCL ,had brekkie found jumped up 24% now, eye on CEY as well, too much action coming at the one time. Another thing with the subscription is the wait for shares to be credited to account, 14 days.
Peel Hunt increased holding by,c ½%. Anyone trying to buy number of shares represented by gpss on conversion, in the market, would surely exert upward pressure on price all other things being equal. Think we'll only get a steer on sp after gpss converted or not. If converted what's best use of funds, buying more shares of cos. where the share price is already discounted in the gpm, that is paying prices greater than reflected in gpm nav, or buying shares of gpm and thereby reducing that discount.