The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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All these mentioned shares have their own personal issues going on, from political to production. That all needs to be factored in b4 investing. Are these issues in hand or not is an important question? Not to mention price trends. PM price isn't the only factor to consider..
Its not just CEY.
Fres is -3.8% Hoc -2.4%.
Its normal at the moment.
Centamin is a contrarian share that is very difficult, if not impossible to predict.
Why hasn't CEY sp tracked the rise in PoG? I see inflation concerns rise feeding POG but not CEY!? Only recent news has been, what has been shared, about Capitol and WA. Both are positive for CEY
This topic was discussed earlier this year, but I thought it would be a good reminder now.
https://goldsilver.com/blog/if-stock-market-crashes-what-happens-to-gold-and-silver/
The first table in the above link suggests that gold usually increases in price as stocks crash. The large 46% decrease in gold price in the early 1980s crash is really down to the Thatcher and Reagan governments using monetay policy to reduce inflation that stoked up during the 1970s oil supply crises. Interestingly, the tech crash of the early 2000s saw the gold price increase.
At the moment, the commodity prices have pulled back from their highs while the NASDAQ has surged ahead. Note, however, that it's mainly the FAANG stocks that are rising; others such as MVIS are falling and some of the green tech stocks (FSLR and SUNW) are not blazing away. So, it's not a broad based tech rise.
Silver seems to do badly with market crashes. Silver does have industrial uses, so maybe it's not a surprise to see its price fall in a recession. Americans own a lot of silver, so they might have had to sell some during previous stock crashes, to pay the loans.
Of greatest interest is the 1970s market crash that saw a huge increase in the gold price. I would argue that that scenario is the most likely to be repeated when people ditch their Facebook shares this time around. Governments will respond to the next stock crash with yet more money printing, which will head towards commodities and precious metals. Then, the next Maggie and Ronnie show will begin all over again and I'll be ready to sell them all my gold for a ridiculously high price.
At the moment, gold and Centamin are gathering strength for the coming storm.
Shares on major European stock markets moved slightly higher during premarket trading on Friday as traders awaited the final euro area consumer price index report for June.
The previous inflation reading revealed consumer prices rose 1.9% on the year, however, policymakers expect price pressures to accelerate in the second half of the year. Nevertheless, European Central Bank reiterated in recent weeks that they will wait for a full economic recovery before removing support measures.
The DAX added 0.07% at 8:00 am CET, while the CAC 40 was up 0.08%. Meanwhile, the FTSE 100 gained 0.25% in London.
The euro declined 0.05% against the dollar at 8:05 am CET, buying 1.18049.
Breaking the News / JC
*And the pound?
Happy Friday y’al
Too late, Mr B. I was born gaga.
Ah, the sun. I feel so much better in the sun. I just hope it can keep shining here in Britain and not turn into a muggy thunderstorm too soon.
I have lot's of sun everyday.
Be careful or you'll end up gaga same as me.
Yes Mr B. Capital. I've had too much sun today, it would seem.
Hi Mr Tibbles
That sounds like our school dinners.
We weren't allowed to be naughty at school - there were too many witches on the prowl, so it was wise to behave.
Ha ha .
Think you mean Capitol.
Endeavor is bad language to many :-)
It's the lowest level of shorts they've had for a while. A wise move - the Endevour report this morning shows their Centamin contract is running nicely to plan this year. A good set of Centamin results should give the share price a lift.
Hi Red,
I remmber how the girls would annoy deputy headmistress Mrs Howard (The Gorgan) by singing this little ryme in the school playground as a line of up to six girls at a time jumped over the long skipping rope,
"Snot and gobble custard"
"Scab and apple pie"
"All mixed up with a dead dogs eye"
"Get a bit of bread and spread it on thick"
"Then swill it down with a cup of cold sick!"
Oh what fun!
Sums up the policies of our present government a treat!
Worldquant now down below the notifiable threshold after selling some yesterday...our rise today maybe partially down to them reducing still further today
B3 not in place in UK yet alas.
Hi Red
As I understand it, one of the main aims of Basel 3 is to eliminate the daisy-chain of counter-party risk attached to the leveraged/unallocated-paper-gold contracts. - The threat to the global-banking system is just too great. - I believe it was an initiative created through a meeting of minds among the G20 nations, recognising the risk and the likelihood of another banking failure. - Btw, B3 new-rules apply to all commodities not just precious-metals. - The paper board-game they have been playing has got to come to an end. - They've had a helluva run though. - Apparently, currently, the derivatives market has an exposure of almost $600trillion. - I agree with you that going forward new thinking will be in play that could well embrace gold & silver as you suggest and almost certainly going forward, we will be entering a new crypto-monetary-age. - I hardly ever offer advice, but I would advise making a start in understanding the nuts and bolts of what this will mean.
Mr Tibbles wrote: "Snot & gobble custard!".
I have never heard of that expression before. That is so funny - It's the sort of thing that brings out the kid in me.
That's the funniest line on this board this year (so far).
Please God, I never want to grow up!
Thanks Rebess for putting that link up.
I suppose the real question about Basel III and gold paper contracts is why governments are keen to allow physical gold to be held by institutions as a tier 1 asset. My own view is that down the line, (fiat) money with be linked in some way to a basket of commodities of which gold and silver will form part. Setting the printing presses alight at the first sign of economic trouble, does not solve the problem. Dealing with the problem just gets put off, and gets worse in the future. Perhaps there is some sort of recognition of this by politicians. Well, I can dream, I suppose.
If Europe and the US are abiding by the Basel III rules now, they won't allow Britain to keep avoiding them for long.
Hi Halfpenny
Time will tell, but B3 is an imposition against leveraged/ unallocated/derivative gold contracts being used as liquidity. - The new-game in town is a physical delivery-only game. - This should have an impact on physical-gold demand. - However, it's a fair question and we'll have to wait and see. - My own view is that it's bound to have an impact.
B3 won't do PM's any harm but will it do any good?
Hi Mr Tibbs - Agree, you just never know. - Interesting that reference is being made to the present era being 'The Golden age of white-collar crime'. - It's without parallel in modern monetary history.
Hi Mr Bond, I thought it would be of interest. - Highlights that the issue is around the rules for 'clearing'. - By enlarge, Basel 3 is in play.
Yes, thank you Rebess, good to know they haven't got out of Basel 3 compliance , only bought more time, hopefully not too much time because who knows what skulduggery they might come up with to keep the paper scam going!
Notice how governments are willing to bend over backwards for the very culprits who caused
most of the past !financial crashes !
Thanks Rebess explains very clearly.
They are not squeezing out of Basel 111 the Big Boys just buying more time .
Mando, why did it drop to these levels ?
No real logical reason.
Exactly the same as the markets act in general.
With CEY there was going to be a long wait until the traders could expect a jump in price. Traders get very impatient when a share is not moving.