The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
The future is uncertain essentially, in an extreme case all of us and every business have a situation where we would be forced to burn our cash/savings to survive a period (like Covid did to some). By cutting back all forms of spending you increase this time. It's a safe guarding measure, to weather storms, to be prepared for possibly worse. With the assets it/we know it has, it 'only' needs to come out the other side solvent to be back on track. It's a prudent/sensible move I think, possibly decades of dividends protected by holding off paying them in the short term. Also I think they are pushing it back not 100% saying they are not paying it, I think we all hope for a prompt resolution and a return to some normality but pays to be cautious at present?
They are talking about monetary tightening, will they actually do all the interest rate hikes they say?
Gold has these priced in, if they stop short it should be good for Gold. If they do all the hikes and stop QE can the economy cope, has to be a recession? Bad for polls and the solution always used so far is more stimulus....good for Gold?
Maybe!!
Thanks Sherminator, I hadn't thought of all the debt being retained by Poly for the assets they'd might have taken from them, I'd assumed they'd at least be compensated for that, in what would be such a huge government asset grab, but we all know what assumptions make!
Is the absolute worse case they are just left with the Kazakhstan assets? They can't lose absolutely everything can they?
Kyzyl was purchased in 2014 for $618.5M which is approx 1/3 of the current market cap?
Or is there a real risk of absolute zero?
You have the big ones like Barrick and Newmont, then a lot of mid caps 3-10 Billion Mc's. potentially more upside in these but small ones potentially have higher risk as naturally less mines so more impact if an issue arises. Most are down at pre pandemic levels and with the higher gold price making very good cashflow, not so many if you want to avoid US or Canadian $ ones. but these ones can provide some hedge against £'s if currently everything you have is valued in £'s it might be worth considering? obvious risk the other way too mind! Lots of the Gold guys think silver is a potential outperformer but has more risk volatility. Not that comfortable anywhere right now but gold and silver miners certainly don't seem over valued compared to other options.....
FWIW I'm with you.........just depends how long to come out the other side? If we liked it at 1300, then even better now, but short term I accept if could go lower.
Spadesasspade comment are a little perplexing? It's like saying shut up about buying iphones on a Apple share discussion board?
Isn't it reported that JPM are one of the biggest holders of physical silver, so if they could have shorts for a time and then buy cheap physical and win on the shorts too and then stop the shorts and benefit from the possible price rise thereafter? They have been prosecuted for fixing so you can only argue it's no longer happening not that all the talk here is BS https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-920-million-connection-schemes-defraud-precious-metals-and-us
Silver is an interesting one, very little talked about, but actually required for bitcoin and the digital age to work efficiently. Digital is fine, it is the modern world, but uses energy and materials still, not for the 'token' itself but to mine it, transact with etc. Silver also used to be money historically as that was usable/practical for everyday transactions.
Reversion to using it as currency is probably tin foil hat and archaic, but supply demand fundamentals could make silver perform a similar rise to bitcoin, but with an intrinsic usage value built in. Bitcoin to me is more of a belief system, and it's popularity is based on it's rising price and your increase in £/$'s. If it stands the test of time then it will become stable and then probably lose it's attraction and perhaps that's all some of the proponents are doing riding the wave? If you join the collective then your voice adds to the promotion and it potentially spirals, that's where the ponzi comparison comes from?
It's interesting how much our wealth is actually essentially totally electronic, entrusted to cloud systems effectively, it's 'crack pot' to have metals and normal for this!? All very interesting to me whatever your take on things.
re "0.41%Canaccord Genuity Wealth (International) Limited" Jaime Carrasco from there, interesting video https://www.youtube.com/watch?v=1nvzFQyNrF4
Yes I spose on a good sale the vast majority of the profit is paid for. There is still room for extra finds, higher average grades in reality, a continued precious metals increase etc? No buyer is going to pay the top of the ranges or grades and predicted metals prices, EUA will have to meet them some way down from that? Fingers crossed we find out exactly what's happening soon.
I'm a bit green to all this investing, but just reading through all the optimism, if the sale/part sale all comes to pass would you be tempted to invest in the buyer(s) of the assets? Obviously the buyers will be doing so after some massive DD and so should go on to be (more) profitable so just curious what people think. Would that be too safe/dull, one to watch etc?
Didn't it get pushed back again recently, sure I read that...........found the link below googling which I thought was interesting but doesn't confirm the push back from a brief glance
https://www.bankingsupervision.europa.eu/press/speeches/date/2021/html/ssm.sp210503~1672b8b1f0.en.html
Redtrader taking you at face value, the upside is more discovery ie extending the ore body.......so they are commencing the decline to the ore body they and Newcrest know if there and are pricing in and then simultaneously they are drilling and finding more gold around the known findings (lots of this won't be priced in) . If they find even more and it's just in the same hole then there is a chance of another half etc of a mine within this existing one, but that would be a mine with VERY little additional cost. So in very simple terms Newcrest and onbaord and pushing things forward because of the current 'knowns' and the fact they are good enough for viability, things are also looking good for the current unknowns ie the full extent of resource. Nothing is certain but that gives cause for optimism?
Cheers, and Swiss normally pretty shrewd!?
Bonker do you have a link/source for that, just curious
ADE1234, it's important to remember that most producing miners 'should' be a bit like gold on steroids on a rising gold price, as if say a miner is running 10% profit with gold at $1750 .......then if the price rises ALL that rise theoretically goes straight to extra profit. So most are a better play than plain Gold, but there are extra risks, political etc that can negatively impact a specific miner. Classic risk reward conundrum. Just like as the others you speak about re drilling that can move on results news these are even more risk reward, some strike it big and can get bought out, others strike it average flounder...the higher up the risk/reward scale the more time and effort you should put in selecting/monitoring