We chatted to IronRidge Resources' CEO Vincent Mascolo who explains why the company has become a lithium explorer. Watch the video here.
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I,ve got a fairly good idea what's happening here Quady and it's nothing to do with any of that.
Novice or it could be nothing happening at the moment.
Lots of news coming, as Zoros has posted, however we are all waiting for the PFS and CFP.
So some time to wait.
And blockchain technology GST : 0 )
Oh wait, are we all suddenly getting bored with this stock LOLzz... That is exactly what someone is trying to do, Bore the shares out of P.I hands I wonder why !!! Hold tight
Still keeping an eye on it Bubble, thank you.
Quady that's why I also invested in infra,green technology in shipbuilding and wind turbines
There are fears that inflation is going to get out of hand. However, some MPC members believe rising unemployment and business failures will ensure that inflation remains close to its official 2% target in the coming years. I take that to mean that the Government won’t want to see inflation rising, interest rates going up, and the inevitable housing collapse.
Business rates going up next week will ensure that SMEs are slaughtered - big tech will win again.
I don't see this Colonel, I think we are going to have an unusual Conservative budget.
We have businesses coming out of Covid, and with Furlough coming to an end, if we are not careful, the mass lay offs will start. Some businesses will never restart.
Therefore I think it's going to be a jobs budget.
Firstly to protect jobs and then to create new jobs, for a changing economy.
I think the word we will hear more of is Green.
This will be a green budget, with an emphasis on the green economy.
Something also needs to happen on housing.
Anyone else think Sunak might be planning to launch an attack on investors in budget with CGT allowance removed and or raise CGT to 40%?? As the budget is March 3rd, he'd be causing huge panic selling if the measures were to kick in from April 6th 2021. So perhaps his plan is to announce changes taking effect from April 6th 2022 which will basically have investors planning their tax strategies this year and well before March 2022. If SOLG does ever get a bid I just hope it's well before April 2022 otherwise it could have 20%+ value wiped off it in 'pocket' terms.
Looks like he's going after Corporation tax for sure.
The best idea of all would be to go after all the Tory associated business mates group who have made billions out of sweet contracts and hit them with a one off tax as wouldn't want anyone to be doing 'well' out of something like covid would we Sunak!! Mmm.
Zoros, that link is ridiculous, I have seen presentations like this for the last ten years.
Gold and Silver is going to rocket, and the end of FIAT currencies.
It is all rubbish.
If you understood how FIAT currency works, you would say that borrowing is high, but they are asset backed and when we get defaults, their is a correction.
Minute 25:30...and later 27:30 says it all really!
More Importantly --- When will SOLG SP increase?
Thank you Iceberg for a well voiced opinion on Basel 3. I have no idea why people believe rubbish written about the effects of Basel 3 on the gold price.
Having implemented Basel 1 and 2, as well as managed the daily transfer and monitoring of the T1 account for a global bank. I can't see that many will hold gold, a) its costly to store. b) most bank use their T1 asset pool. For example the bank I worked for, would use the 8bn or so during the day, then at 4pm UK time it would transfer the money to cover the T1 back to the ECB account, then use it again the next day. A bending of the rules, but within them, as the money covering The T1 was measured at midnight each day. During the day it would be used to cover all kinds of positions, mostly to other banks, who would have to pay it back by 3pm.
If you think about it, a bank like Deutsche Bank, would make payments for hundreds of banks around the world each day. most of the banks would have open positions with DEUT which would need to be settled through EBA, SWIFT, Target etc. why not use your T1 money, that you have to put aside to do this, during the day? Which is in fact what all the large banks do. I know this is what BARC, DEUT, JPMO, HSBC, CITI do. You can't if its gold.
It makes a mockery of the entire requirement, but was within the rules. If you've got Gold, you can't do this. You can't collateralise against it. You can't do jack. Also if gold went down in value, you would have to keep topping it up with other Tier 1 category instruments, banks wouldn't want this level of uncertainty.
The relevant point for commercial banks under Basel 3 is the NSFR, for which purpose of gold will be classified 85% required stable funding factor, increased from 50%. This makes it more costly to hold gold as an asset because the funding requirement is higher. The US position under Basel 2 and 3 is that gold can be 0% RSF if the holding is offset by gold liabilities, so holding physical and selling paper short.
I think the interesting thing is that central banks have been buying gold for several years now. Don't think Basel 3 is going to cause commercial banks to suddenly start buying gold, as it will be costlier to fund.
From £200 to £1500 and back to £1200 over the last 20 years and that is with all the $US manipulation of gold to keep the whole system from imploding. So Gold has been a one way bet for me!
But also Quady just think with the next QE/operation twist and Commercial Banks have no capacity to increase their reserves and this will lead to negative interest rates regardless of the Fed, which will take the $ a lot lower and light up gold again.......this is why ex CEO Pierre Lassonde is seeing $15k in a few years and Jim Sinclair £50k in 4 years. I'm not saying it will have the same spending power but I wouldn't bet on the US Dollar which is the other side of the bet to Gold!
Zoros the article is wrong, as Redknight says it doesn't have to be tier 1.
Do you understand capital lending ratio 1, and why Basel 2 was a disater.
You are reading part of it with no understanding.
When we went to Basel 2 in 2005, it meant that the capital that was held by banks, was cut by nearly 2/3rds.
sipptrader under Basel 3 gold goes from 50% to 85% not 100%.
Just think about the timescale, if is was even remotely correct. buying gold would be a one way bet. It's not.
"...Zoros the post on basel 3 you posted is incorrect, gold will not be moved to become a tier 1 asset, tier 1 refers to the lending ratio's...."
Try this as well:
"...Currently, paper gold is not a 1st tier asset. Only fully allocated physical bullion that has no counterparty risk attached that qualifies as a first-tier asset..."
Stop fiddling around the edges with lending ratio's....Physical gold will become a Tier 1 asset as of March 2021.
Banks will revalue gold. Gold will go exponential as a consequence to absorb everyone's debt.
Quady if you mean that $15k gold is rubbish because it should be $50k then I agree with you. If you mean less than $15k then I will stick with the views of the CEOs of Gold Mining cos. rather than Quady.
Why don't you say what you really mean...?
This is bizarre...and suggests to me that the SP is being 'played'...
The SP barely moved to reflect the copper price move from $3.54 to $4.37 from Feb 5 to Feb 25...(up 23%)
SOLG 22.78 to 22.80...up less than 0.1%...
During the same period, however, gold fell 1.3%...
Today gold has fallen 3.7%, copper has fallen 4.2% and SOLG has fallen 5.7%...
I still think its the name that is the problem...SolGOLD...on volume of only 5.6 million shares (although much of that was towards the close...)
Its the fear factor again...
Even at $4.12/lb, $1718 an ounce and $26.2 an ounce, the GROSS value of the Alpala reserves alone is $130 BILLION...
Redknight read what I said, I said that gold is not classified as Tier one on capital lending ratio one. So this 15,000 dollars an ounce price is rubbish.
The Bank of International Settlements under Basel-III changed the status of gold as a reserve asset effectively on April 1, 2019. Gold used to be viewed by the banks as a risky asset and classified under “Tier-3”, which meant it was considered risky and could only be carried on the books at 50% of the market value for reserve purposes. Naturally, gold has historically been classified as a Tier 3 asset because its value fluctuated. To the extent that the value was reduced for reserve status by 50% ensured that there was little incentive for banks to retain gold as a reserve asset regardless of their beliefs.
Since the BIS reclassified gold as a “Tier-1” asset, its value is now no longer reduced but is reflected as 100%. Now people assume banks will run out and buy gold. The problem is that it is not a fixed price on the balance sheet but it is regarded only as a 100% of market value. While some claim that this makes Gold a “riskless” asset in the eyes of world banking authorities, they fail to note it is market value. Cash does not fluctuate $1 is still $1 regardless of what it buys.
Quady...instead of talking nonsense why don't you stick to being an actuary...
You clearly know nothing about Basel 1,2 or 3 and banks capital requirements...unlike those of us who qualified as bankers and treasurers and Directed Financial Services companies...
Basel Capital Adequacy ratios dictate the amounts of capital banks and similar institutions have to hold to manage the risk of, for example, lending...
Gold can be both a Tier 1 and a Tier 3 Asset under Basel 3, but there are strong reasons why countries and banks have been buying gold in anticipation of Basel 3...
Here is a 'layman's article'...
"On January 31 of this year, the World Gold Council revealed that global central banks, in response to the Basel III rule changes and growing political and market uncertainty, added 651 metric tonnes of gold to their reserves in 2018. This is a 50-year record, and represents a 74% year-over-year increase in net purchases. It is also probable that current institutional demand is reflective of the harsh reality facing the gold mining sector. The trifecta of declining resources, compounding regulatory and environmental burdens increasing the time to production, and few to no new major discoveries will lead to supply shortages. The explosive growth in monetary demand for gold and the dramatic decline in gold production will certainly buoy the price well into the future – independent of broader market conditions. "