Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Loved reading your stuff very much mirrors my own thoughts and the difficulties of being a contrarian? The last time I followed my gut feeling was when I placed a 500 e-w bet on the 1974 Derby winner SNOW KNIGHT at 50/1. Everyone said I was crazy. Now I am betting on GOLD. I have sold all bar one of my shares (TESCO) and into small Gold miners preferably with little debt. SHG should do well and my largest holding in in a small (very) gold stock GOLDPLAT (GDP) which is still below the radar and seriously UNDERVALUED. But please do your own research. Their must be a market crash sometime this year as the Covid-19 situation has a long way to run. The dollar must come under serious pressure helped along by China and to a lesser extent Russia? The Gold run may last for years. I makes me sad to think that so many are going to suffer but I have to back my feelings and go with it. The Markets are still heading upwards which is just plain crazy? Gold seems to have broken the important 1800 markand hopefully will continue to where I know not with a few dips on the way.
Colonel, I think the problem (if we can call it that) is that none of the mainstream financial channels advocate buying PMs or mining stocks. They don't even talk about it. It's like the entire asset class doesn't exist!
"Buy Amazon. Buy FaceBook. Buy Apple. Buy Tesla". Even, "Buy oil: it's due a recovery", but it's never "Buy gold. Buy gold miners". Gold has been THE BEST performing asset of any class since the turn of the millennium, but it's NEVER recommended by the MSM. Whilst individual stock performance will vary, everyone here will appreciate the great run that (most) mining stocks have had over the last 12-18 months. Despite the dearth of support for the sector across the MSM, I believe we are only just getting started here. GDX at 400? 500? We shall see...
I'm a contrarian by nature & I know it can be hard sometimes: to be the lone voice.....to go against the herd.....to doubt your own convictions when EVERYONE else is telling you that you're not only wrong, but you're crazy. Well, as a gold holder (average £955 p/oz), silver holder (average £12.12 p/oz) & mining sector investor since late last year, I'm very happy to say that I've backed my instincts & indeed have since gone "knackers-deep" into the PM sector. Unfortunately, very few people want to know & refuse to contemplate that nagging doubt within them that won't quite go away, no matter how much MSM TV they watch.
I find this forum very informative & it's good to find like-minded individuals who see things the same way. I think most people here are here for the same reason: they see the system is collapsing & they sense the opportunity. I believe what's coming is apocalyptic & I believe it is planned (although that's not a discussion for this forum).
Fiat currency will do what it always does: go to zero. All you have to do is take a look around at the world today & there can be little doubt we are now in the advanced stages of that. That's why narrative control is so important right now. This will be the greatest wealth transfer in human history. Those here are (I believe) in the best position to make sure that that wealth transfer works in their favour, & not against them. Eventually, the masses will catch-on & pile-in. We could all be sitting on 10-baggers before that happens, though.
GLA.
A 35% devaluation in the $USD would take AUX to $USD2500 a Troy Ounce and that is before you even get to the debasement that gets you that kind of devaluation in the first place and the inflation it gives the US and the rest of the world at the same time which will make AUX rocket over and above the $USD2500 IMHO.
The US is probably in for a very bad month or two, it will have to lock down more states to contain the spread of COVID-19, if they don’t, you will be looking at a rampant COVID-19 spread during the fall / winter at the same time as the Flu Season, a probable collapse in the US Healthcare System at least in some heavily populated states and a dollar that will be trashed under a mountain of useless printed dollars.
Colonel,
I agree with you except for one thing, & if I'm right, it's good news for all here. I don't ever see gold going back to $1300 p/oz. Or even $1500 p/oz for that matter. You're right: gold traded in a very tight trading range from mid 2016 - mid 2019, & even before that, it was very aggressively capped at $1350, having made multiple attempts to break this level & failed.
As we all know, we finally broke-out of that trading range last year. What fundamentally changes the dynamics now (IMHO) is the unprecedented level of money printing (read "debt creation", as all global currencies are debt-based) that is being undertaken around the world. Even if the virus disappears tomorrow (which it won't), the trillions upon trillions of newly-created debt is here to stay. Indeed: I believe it's only just getting started, & global governments will borrow, & central banks will print, MAGNITUDES MORE.
My personal target for gold is £4000 p/oz (& yes: that's £s & not $s) & £135 p/oz for silver. Whilst that seems crazy ATM, there is actually historical precedent for percentage moves of that scale; we just need to look at what happened during the last financial crisis (when gold rose 450% from 2006 to 2011). The only reason gold pulled-back from its $1920 (2011) peak was because central banks around the world were able to convince everyone that they would unwind QE. There is no way people are going to buy that this time around.
For now, the market is distracted & continues to gorge itself on the torrent of new money that is being pumped into the "economy", but reality, when it dawns, will be harsh & quick. The average investment portfolio ATM has just 1% invested in PMs or PM-related assets. The long-term average is 4%. At the height of the GFC, that rose to 7%. Even if we just return to the long-term average, there is potentially a mountain of money that will be looking for a home in gold, silver, etc.
I defer to your knowledge of Shanta & am very grateful (as are others, I'm sure) for your insightful posts, without which, it's true to say, I would not have invested here. I'm VERY happy to be onboard here (at 12p) & believe the future is very bright. Just keeping some powder dry should we get another March-style pull-back (which I fully expect).
GLA.
Buys near 14.50p.
15p+ next week imo.
Building my stake here now.