China has not the same out look as the rest of the world,when it comes to its mineral resources.
Although its the largest producer of gold at the moment,it really cares little about its production,but jealously guards its base and industrial minerals.Any western mineral miner can get a permit to mine gold there and has some freedom as to where it decides to sell its production,but when it comes to the base metal category itis almost impossible to get a permit.The Chinese believe that that asset is best left in the ground.That is why they are now expandng outwards world wide and buying up all those mineral assets as then they will have their own in reserve.
Another fallacy is that they need our know how to succeed at mining.This is simply not so,as they have been mining for two thousand years and when they need to know exactly how to mine.
Become a follower of mine on Twitter,then choose those twitterers that suit you the best of my followeres and those I follow to supply you with the best news and interests out there my twitter address is http://www.twitter.com/naomibarry
Simon has just sent me on twitter an update from JSE DIRECT also I follow CLIVESIMKINS and ALEX HOGG
Wednesday, March 24, 2010
Thursday, March 18, 2010
Update
Sake24 is taking Escom to court to force it to give its very secretive deal it originally had in the nineties with Richards Bay Aliminium smelter out to the press as conditions have vastly changed since then.
It is rumoured that Escom is supplying electricity at under cost price to the smelters.It is also rumoured that if we don't supply the smelters at all we won't have an electricty crisis,if fact we shall have a surplass of electricty.
It is rumoured that Escom is supplying electricity at under cost price to the smelters.It is also rumoured that if we don't supply the smelters at all we won't have an electricty crisis,if fact we shall have a surplass of electricty.
Monday, March 15, 2010
Update March
South Africa has fallen to fourth spot in gold production ,behind China Australia and America.
The electricty shortage in 2008 and the rising cost of production as our mines become older and deeper also weighed upon production.
Then there is a general policy in South Africa to mine the lower grade ore bodies when the price of gold rises and this is now the case.When the price falls again then the better ore bodies are mined,this is done to give continuity to mining as it is cheaper than to close mines every time the price falls.
There is expected to be a shortage in supplies of platinum in particular and in all PGMs in general during this year as the curtaling of production kicks in.The situation will probably only ease in a couple of years time as there is likely to be an increasing demand as the world recovers from the recession.
Go to the sashare2010 blogspot for twice monthly updates.
The electricty shortage in 2008 and the rising cost of production as our mines become older and deeper also weighed upon production.
Then there is a general policy in South Africa to mine the lower grade ore bodies when the price of gold rises and this is now the case.When the price falls again then the better ore bodies are mined,this is done to give continuity to mining as it is cheaper than to close mines every time the price falls.
There is expected to be a shortage in supplies of platinum in particular and in all PGMs in general during this year as the curtaling of production kicks in.The situation will probably only ease in a couple of years time as there is likely to be an increasing demand as the world recovers from the recession.
Go to the sashare2010 blogspot for twice monthly updates.
Tuesday, March 9, 2010
Update March
The Nasdaq has reached its highest point in eighteen months,since its loaded with technology shares ,it might be a good place look at shares for the future.
The gold price may be running out of steam,although there is still a small upward bias in the price.
The gold mines share prices have not picked up really since the start of this year and at best the ir prices are churning.
GOLD ETF's (EXCHANGE TRADED FUNDS) are holding up quite well .They were in part responsible for the price of gold taking off. Now there is worry that as it becomes obvious that the recession is behind us there will be a huge sell-off causing the GOLD PRICE TO TUMBLE.
South Africa - 1982 Krugerrand 1/10 Oz. Gold Coin
If you feel that you would like to hold something in gold,there are always coins that have an intrinsic value other than just being a metal hoarding exercise.Their specific history,condition and amount minted ,design also play a part.American Eagles Coins,South African Krugerrands Coins a re the best known and easiest to trade.
The gold price may be running out of steam,although there is still a small upward bias in the price.
The gold mines share prices have not picked up really since the start of this year and at best the ir prices are churning.
GOLD ETF's (EXCHANGE TRADED FUNDS) are holding up quite well .They were in part responsible for the price of gold taking off. Now there is worry that as it becomes obvious that the recession is behind us there will be a huge sell-off causing the GOLD PRICE TO TUMBLE.
South Africa - 1982 Krugerrand 1/10 Oz. Gold Coin
If you feel that you would like to hold something in gold,there are always coins that have an intrinsic value other than just being a metal hoarding exercise.Their specific history,condition and amount minted ,design also play a part.American Eagles Coins,South African Krugerrands Coins a re the best known and easiest to trade.
Monday, February 22, 2010
March 2010
Unique Stock Exchange Trading Ideas
Cnythia Carol the CEO of Anglo is taking a stronger line with the South African government and has told them there will be no expansion in production unless they make available another 10% above the capacity that was normal before last years cuts,on a permanent basis. Last year all mines were told to cut their electricity usage by 10% causing a great loss of revenue as no expansion could take place.
On another subject note that the FTSE index and the South African ALSI index follow an almost identical course ,with minor divergances only.
Mini Update 2March
The price of IRON ORE is expected to almost double during the next 18 months and this demand is expected in EUROPE and THE AMERICAS . CHINESE DEMAND IS ALSO LIKELY TO INCREASE BUT AT A SLOWER PACE.
I hope Kumba knows what its doing when it breaks the contract to supply Mittal how ever unfair it might be.This issue should be fought in the courts. Imagine what a place the world would be if we were all able to break any contracts we don't like!
Followers can use their blog to e-mail us direct and then we shall reply,just say wether the blog is for Naomi or Barry or e-mail us direct on bvbgerard46@gmail.com
Go to http://www.sashares2010.blogspot.com/ for the March update important updates on platinum group metals.
Cnythia Carol the CEO of Anglo is taking a stronger line with the South African government and has told them there will be no expansion in production unless they make available another 10% above the capacity that was normal before last years cuts,on a permanent basis. Last year all mines were told to cut their electricity usage by 10% causing a great loss of revenue as no expansion could take place.
On another subject note that the FTSE index and the South African ALSI index follow an almost identical course ,with minor divergances only.
Mini Update 2March
The price of IRON ORE is expected to almost double during the next 18 months and this demand is expected in EUROPE and THE AMERICAS . CHINESE DEMAND IS ALSO LIKELY TO INCREASE BUT AT A SLOWER PACE.
I hope Kumba knows what its doing when it breaks the contract to supply Mittal how ever unfair it might be.This issue should be fought in the courts. Imagine what a place the world would be if we were all able to break any contracts we don't like!
Followers can use their blog to e-mail us direct and then we shall reply,just say wether the blog is for Naomi or Barry or e-mail us direct on bvbgerard46@gmail.com
Go to http://www.sashares2010.blogspot.com/ for the March update important updates on platinum group metals.
Thursday, January 28, 2010
Update no 4 2010
So the American market has blown off some steam.Yes this is all part of a recovery.Since the market has started up from its lowest point in the recession ,it has now had three reversals of between four and eight percent.This last one had two of the three days reversals of over two hundred points.
After such an event it does not take off immediately on its upward path again but hesitates while confidence has to be rebuilt.It can be said this gives one a second chance of getting in again ,if you missed the upturn the first time round.Do remember the average increase is over fifty percent from the lowest prices in the recession for the ALSI Index
Go to VEIW MY COMPLETE PROFILE then to BLOGS I FOLLOW TO VEIW MY OTHER BLOGS
I see gold stock in general and Harmony's CE0 in particular are worried about the huge costs of mining and the huge burden of repayments that has to be made.
Amplats has suffered from the report that they expected a much lower income,I should say are unlikely to gather momentum for fast increases any time soon ,although the future next uyear is very bright.
Kumba and Exxaro have a brighter future at thei stage.
MINI UPDATE 1/FEB/2010
AT A MINING CONFERENCE McCloskey of their contractor group said recently the COAL price is likely to move up within the next eight months from Aroung $124 to $200 for steam coal.This was confirmed by the Anglo american delegate.
Of great importance to South Africa is that now 75% of our Coal is exported to India and China as we are in a stragecic position and unlike other minerals are never going to loose this market.In time we should be able to export more for this ever growing market.
9/2/2010 mini update
BHP Billiton and Rio Tinto have asked China and Japan for a 40% increase in iron ore prices this year.Both Japan and China realise prices must go up,but I expect tough negotiations to follow and probably the increase will be nearer 15%
11/2/2010 mini update
It is said that the economy of China will soon overcome that of Japan. Still it will only be a third the size of the United States.
Some fear that it will eventually become the largest ecomony ahead of the United States even if it takes twenty years.There was the fear earlier that Japan would over take America.Due to many constraints this never materialised.
Now the likelyhood of this happening with China is slim as China has such a large population that must be looked after.First they must overcome several bubbles in their economy that are likely to occur.Still not having the complete free market system would mask many "bubbles" that likley to occur.At the moment their banks carry a huge debt and efforts to save them are masked and the public are not aware of the true situation.
One thing is clear is that Japan might welcome slipping into third place as then the vindictive world would concentrate on reigning in China and leave Japan to recover and its economy to thrive as they are a fully free market economy.They have been bullied mostly by the United States over the last decade and they slipped into a long drawn out recession as a result of trying to comply with the demands placed upon them.
The United States more in fustration of their own economic woes is now picking on China and there tensions building between the two.One manifestation is that the United States is suddenly worried about "human rights " some thing that not worried them for many years in the past. Google of course is also suddenly worried about Chinese interference of their programmes,also something that did not worry them in the past.
This is likely to support precious metals as there is fear that China might put pressure upon America by turning partially to gold and also withdrawing funds fromAmerica and them in turn declaring that the Chinese holdings are annexed and that their money is worthless.I am sure none of this is likely to come to pass as cooler heads on both sides of the Pacific are likely to prevail.
After such an event it does not take off immediately on its upward path again but hesitates while confidence has to be rebuilt.It can be said this gives one a second chance of getting in again ,if you missed the upturn the first time round.Do remember the average increase is over fifty percent from the lowest prices in the recession for the ALSI Index
Go to VEIW MY COMPLETE PROFILE then to BLOGS I FOLLOW TO VEIW MY OTHER BLOGS
I see gold stock in general and Harmony's CE0 in particular are worried about the huge costs of mining and the huge burden of repayments that has to be made.
Amplats has suffered from the report that they expected a much lower income,I should say are unlikely to gather momentum for fast increases any time soon ,although the future next uyear is very bright.
Kumba and Exxaro have a brighter future at thei stage.
MINI UPDATE 1/FEB/2010
AT A MINING CONFERENCE McCloskey of their contractor group said recently the COAL price is likely to move up within the next eight months from Aroung $124 to $200 for steam coal.This was confirmed by the Anglo american delegate.
Of great importance to South Africa is that now 75% of our Coal is exported to India and China as we are in a stragecic position and unlike other minerals are never going to loose this market.In time we should be able to export more for this ever growing market.
9/2/2010 mini update
BHP Billiton and Rio Tinto have asked China and Japan for a 40% increase in iron ore prices this year.Both Japan and China realise prices must go up,but I expect tough negotiations to follow and probably the increase will be nearer 15%
11/2/2010 mini update
It is said that the economy of China will soon overcome that of Japan. Still it will only be a third the size of the United States.
Some fear that it will eventually become the largest ecomony ahead of the United States even if it takes twenty years.There was the fear earlier that Japan would over take America.Due to many constraints this never materialised.
Now the likelyhood of this happening with China is slim as China has such a large population that must be looked after.First they must overcome several bubbles in their economy that are likely to occur.Still not having the complete free market system would mask many "bubbles" that likley to occur.At the moment their banks carry a huge debt and efforts to save them are masked and the public are not aware of the true situation.
One thing is clear is that Japan might welcome slipping into third place as then the vindictive world would concentrate on reigning in China and leave Japan to recover and its economy to thrive as they are a fully free market economy.They have been bullied mostly by the United States over the last decade and they slipped into a long drawn out recession as a result of trying to comply with the demands placed upon them.
The United States more in fustration of their own economic woes is now picking on China and there tensions building between the two.One manifestation is that the United States is suddenly worried about "human rights " some thing that not worried them for many years in the past. Google of course is also suddenly worried about Chinese interference of their programmes,also something that did not worry them in the past.
This is likely to support precious metals as there is fear that China might put pressure upon America by turning partially to gold and also withdrawing funds fromAmerica and them in turn declaring that the Chinese holdings are annexed and that their money is worthless.I am sure none of this is likely to come to pass as cooler heads on both sides of the Pacific are likely to prevail.
Monday, January 18, 2010
Update no3 2010
It seems as if Greece is not over its monetary problems yet,This is likely to keep supporting the GOLD price.The European Union also seems restless as the Greek situation is having a knock on effect.In America their government is at the moment seems able to manage their debt situation well, as the promise of things coming right is ,pushing the actual situation into the back ground so there is no likely hood of upward pressure on the yellow metal.Gold is like therefore to be range bound probably staying above $1080 per ounce for the month.Physical demand for the metal is picking up as well as various reserve banks through out the world replenish their stocks and ETF's are still in demand as nervous investors use gold as a backing currency.Industrial demand is also increasing.
The COPPER price has moved up over the last couple of months but seems now range bound.
Platinum prices are near their seventeen month highs.All the other PGM's that by the way ,are seperate metals but usually found in the same seam as Platinum prices are very high.
Now there seems to be talk of the market pulling back in America as it is believed it has overshot the conditions in the country.Every one from Motley Fool to CNN is trumpeting that there is going to be a massive pullback,almost willing it to happen.I am not certain what the motive is.Maybe just to sell their publications or genuine concern to tame the prices to make the recovery more sustainable over a longer period.I earnestly hope it is for the second reason that are suddenly taking such a negative veiw of things.This is not to say that things are alright on the ground ,by any means and yes there is likely to be a pullback soon,but i do not believe it will be massive!
They are mostly speaking about financial and commercial stocks.What will happen to resources is another subject entirely. Up to this point whenever their market has failed resource prices suddenly lurch upwards.Another point is that PLATINUM is nowhere near its highest high.About two years ago Platinum reached over $2200 per ounce in price.It is arounfd $1600 at the moment and recovering fast. PALLADIUM at one time in a spike reached over $1000 per ounce .It is now around $400 per ounce.
There is really a very small traded market for the PGM group metals and most of the major producers sell on contract.Some years ago Impala sold around 85% of their output on contract.I have no idea how much can be considered sold forward today as usually this is a well gaurded secret. It is difficult to find out who the buyers of the metals are as well as I think each group is afraid that another group might move in and try to steal their customers from under their noses.
The COPPER price has moved up over the last couple of months but seems now range bound.
Platinum prices are near their seventeen month highs.All the other PGM's that by the way ,are seperate metals but usually found in the same seam as Platinum prices are very high.
Now there seems to be talk of the market pulling back in America as it is believed it has overshot the conditions in the country.Every one from Motley Fool to CNN is trumpeting that there is going to be a massive pullback,almost willing it to happen.I am not certain what the motive is.Maybe just to sell their publications or genuine concern to tame the prices to make the recovery more sustainable over a longer period.I earnestly hope it is for the second reason that are suddenly taking such a negative veiw of things.This is not to say that things are alright on the ground ,by any means and yes there is likely to be a pullback soon,but i do not believe it will be massive!
They are mostly speaking about financial and commercial stocks.What will happen to resources is another subject entirely. Up to this point whenever their market has failed resource prices suddenly lurch upwards.Another point is that PLATINUM is nowhere near its highest high.About two years ago Platinum reached over $2200 per ounce in price.It is arounfd $1600 at the moment and recovering fast. PALLADIUM at one time in a spike reached over $1000 per ounce .It is now around $400 per ounce.
There is really a very small traded market for the PGM group metals and most of the major producers sell on contract.Some years ago Impala sold around 85% of their output on contract.I have no idea how much can be considered sold forward today as usually this is a well gaurded secret. It is difficult to find out who the buyers of the metals are as well as I think each group is afraid that another group might move in and try to steal their customers from under their noses.
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