Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Svend, we are of similar minds. I would like to see a share price of at least £25. Given the quantity of money printing, gold should be at $2500 an ounce which would put a rocket beneath Poly. That said there are dark forces at play. There have been coordinated efforts by governments globally to suppress the gold price while they have largely ignored Crypto. Bitcoin aggregate value exceeded silver last week for the first time ever. Personally I think that the international finance elite misjudged the threat of gold, allowing a far more dangerous alternative to Fiat the opportunity to establish itself and prosper. Criminals, terrorists and tax evaders prefer crypto to for obvious reasons. If and when the balance is redressed and, given the cultural significance of gold in Africa, India, China, and South America, not to mention deeply embedded inflation, the future is bright, golden even. I hope that all our hopes are realised and that you and SIDI have a pleasant weekend. GLA.
Smithy, when they stop printing and retire some of the excess supply.
SIDI you are manic. I have 2 Poly holdings, one in the money, and one loosing 3K but I received a USD dividend to offset the loss. I take a macro view; in a world of universal debt peonage, market manipulation, QE and imaginary value viz Crypto, gold has got to go higher. When gold rises the miners, especially those with the lowest production costs, will increase exponentially. Thus, Poly is a good bet in the medium term regardless of the current fluctuations. Sit back relax and ignore the turbulence. We shall arrive at our destination on schedule. GLA.
MB, I am in Aviva and DLG which I see as a decent bet with strong dividends so I concur with first 2 picks but CLG is Clipper Logistics I assume which has a lousy yield and a poor PE. Where do you see value in that? Other financials I am tracking include MNG and ABDN which are both a bit flaky but pay great returns as long as they don't disappear a la Lloyds.
23, a period called the 'Brown Bottom' in gold bug circles. 400 tonnes at around $250 an ounce. Half our holding with Messrs Miliband and Balls as wing men. Incredible. Rumour has it that the sale was an attempt to drive gold down to prevent a major US Bank going bump due to its derivatives position but who knows.
MV be fair, Sir Reginald did use some of his windfall profits to refurbish stables and rebuild a cricket pavilion on his estate. Such selfless largesse must be applauded. I believe that George Osborne's father-in-law is also a champion of Socialist values.
Hardly Falky, just a more expensive world which causing those with fewer means to make tough choices between food and heat. It was ever thus. You just need to make investment decisions that take into account the dwindling purchasing power of cash. Personally I am looking to put money into shares rather than having it sat in a bank account shrinking. Many people are doing the same calculus; if my cash is going backwards I might as well spend it, which adds to the inflationary problem especially when you run up against supply constraints. There simply are not enough safe places to secure your wealth!
Inflation is hugely understated due to manipulation using devices such as hedonic adjustment and excluding items such as healthcare, education and housing not to mention focus on CPI rather than RPI. Check out John Williams on Shadowstats.com. The country was in uproar when fuel went to 90p per litre in the late 90s. It now looks as though it like energy prices are taking off again. Oil will be $100 plus a barrel by Christmas. We are already seeing wage increases predicated on inflation and that is the point of conception where the cycle begins. Governments around the world are all spouting lies about the transitory nature of the increase. You can't print and distribute that much money and expect it to stay beneath the mattress.
I have been following your discussion and am also deeply sceptical about the validity/ practicality of Bitcoin. Intellectually I see many advantages; beyond government control, transferable, portable, divisible, finite etc. Satoshi's white paper is visionary and blockchain technology renders conventional banking redundant, yet in the corner of my mind I hear a small but persistent whisper that something is not quite right. I feel like Jack being offered magic beans in return for his cow. Ultimately governments will combine to legislate unsanctioned crypto out of existence. It will become a 21st Century allegory of moonshine in the prohibition era. There is also the fundamental flaw that it is near impossible to spend Bitcoin on daily transactions. I understand that Ethereum has enhanced functionality. Gold may be a barbarous relic but its value is corelated closely to panic in periods of economic turmoil. Winter is coming. Thus I have Poly shares along with oil and mining stocks. GLA.
It is less than 50:50 because transaction costs tilt the scales against you and you are betting against bots with access to endless data. The market rises on open and falls before the close to crystallise positions. It also does well in January and dumps in Sept-Oct. At month ends and quarters it also falls. The rhythms are patterns the bots observe as are the responses to ghost trades and media posts. The game is rigged massively against small day traders like Californian and Australian gold prospectors of yore. GLA
Neil, surely a return of the dividend would do wonders for the share price. I bought in anticipation of yield and have been sadly disappointed. Does anybody think the dividend will be reinstated soon? GLA
I suspect that the great 50p by Friday debate may resume shortly.
Interest rates perform several functions; they indicate the time value of money, measure risk, imply future trends, and reward prudence. The current low rates have caused enormous bubbles and distorted global markets. Rates of 3-5% would bring our world back into focus but Governments can't allow normality to return because the G20 would all be bust and businesses would tank. Debt is the air we breath in this crazy world that rewards risk and encourages profligacy.
Plato, Perhaps you missed the news about the Blairs 'avoiding' £300K stamp duty? People of every colour and political persuasion have invested in property because there are few alternatives if you want to maintain capital; shares are a gamble, bonds and cash are negative in real terms. The incentives have driven people into property along with the media, who have made property ownership so culturally significant.
Emerald, perhaps we could recycle the hot air generated by Parliament or the Party conferences? Failing that I know the Masai tribe use dried cow dung as a fuel source. Again we could utilise all the BS emanating from our political classes. If all else fails we could just dig an enormous hole and jump in to benefit from ground source heat.
£3.41 Emerald
£3.46 JPWilliams
£3.49 Share-Ninja
£3 53 Stockready1
£3.55 Charlesrixon
£3.56 KPMAN?
£3.57 Baffled
£3.60 licker
£3.80 spights
MrJim, a similar thing happened at my local council offices in Harrogate. The people who process the property searches went on a go-slow to protest about changing working conditions i.e. they were not allowed to take pillows into the office or wear pyjamas. Consequently, buyers desperate to complete before the end of the stamp duty threshold were screwed. A large proportion of the public sector need to be culled. They are over-paid, under-employed, excessively-pensioned, entitled and vocal parasites.
Stockready1, On balance I think that your analysis is spot on. Roughly 11 years into an uninterrupted growth phase means we are well over due a correction. The distorted reality of the past 18 months, due to Covid measures, has created greater demand and adversely affected supply chains. We must also acknowledge the impact of climate change, peak oil and growth within the emerging markets.
Large parts of Africa, South America, Asia and the Middle East are seeking improvements in basic living standards vis-à-vis sanitation, mobile phones, computers, refrigerators, roads, education, air conditioning, housing and food. There will be considerable demand side pull. Commodities are a safe bet.
I am also exposed to tobacco, PMs, FIRE, Pharmaceuticals and MKS which I see as a recovery stock with Tech exposure and a possible take over target. The pendulum will surely swing towards dependable boring value shares rather growth stock with no track record or profitability.
I am mainly in UK stocks which I feel are under valued relative to peers as evinced by the recent flurry of US PE activity in the retail and engineering sectors.
Sit tight and keep your nerve. GLA
I suspect that there will be a special dividend at circa 0.65 p. Less than we want but more than we anticipate.
Yea yea yea and I have some really great Evergrande bonds to sell you plus Theranos and Archegos. It is about balance, risk, analysis and personal circumstances. Morons who assume everything is simple generally lack the brains to realise their own limitations. Why don't you go and lionise Elon Musk and Tesla on Wallstreetbets?