mineral resources has been
over done. One finds it is
usually the overseas mutual
funds that are the most
skittish. (See the rest of the article below the Alerts and notes)
Utah in the United States passed a law a couple of years ago to make trading in SILVER and GOLD COINS LEGAL TENDER. Now Arizona is considering similar legislation.This all very revelent in the light of the Cyprus government seizing bank deposits of its citizens.
Now in Utah the holdings of silver and gold which private citizens use as currency has doubled.There is no tax upon currencies .This can have a stabilising effect upon Gold and silver.The coins are valued at their intrinsic value which varies daily.Many are kept in depositries or as we keep our coins at home.Then a coin card can be swiped.
We hope tht government does not fall into the trap the rest of Africa has in believing the mines are making a killing when they have an extra big pay out of dividends to their share holders as this is an event that happens rarely these days.They forget that a mining company can go years with out paying a dividend and such an event compensates the long suffering shareholders for their patience.They should stop talking about "windfall taxes" !
1.The poor performance of the Rand is now caused by our foreign exchange deficit.The immediate way to improve the deficit is to attract more investment capital to South Africa,a difficult task as there are government politicians that discourage investment by their utterings at every turn.Also the tax regime on foreign investment should be made less onerous.A great many countries are vieing for these funds by giving all kinds of incentives.
2.The wild cat strikes at EXXARO over production bonuses is regrettable.This can lead to coal shortages and electriccal shortages this winter.
DAY 13 PM
THE STRIKERS ARE STARTING TO RETURN TO WORK.UNFORTUNATELY WILD CAT STRIKES SEEM TO BECOMING THE NORM ON ALL KINDS OF MINES FOR FRIVILOUS REASONS.THIS MUST BE BROUGHT UNDER CONTROL
SHARES ON THE DOW HAVE REACHED THEIR HIGHEST POINT EVER.IF ONE REALISES THAT THE LAST TIME THAT THEY REACHED THAT POINT WAS FIVE YEARS AGO THEN REALLY THEY STILL HAVE A WAY TO GO THEY REALLY BECOME OVERBOUGHT.
THE PE RATIO NOW AVERAGES AROUND 14. AT THE HEIGHT OFTHE DOTCOM BUBBLE IT WAS AROUND AN AVERAGE OF 19.
THAT SAID,IT MUST BE REMEMBERED THAT ITS THE FED PUMPING MORE MONEY INTO THEIR ECONOMY(US $) THATS LETTING THEIR SHARE PRICES RISE AS ITS THE ONLY PLACE THEY CAN GET A DECENT RETURN ON THEIR CAPITAL.THEIR ECONOMY IS STILL SLUGGISH.
NOTE 1.The latest updates are at the bottom of the index list above
NOTE 2.Visit the NEW page six of Small/Mid cap shares on index above for the latest share movements.
NOTE 3.In the absence of Naomi I am updating Technical analysis this month-Barry see above.
NOTE 4. The Platinum report has been replaced by THE GOLD AND PLATINUM REVEIW . See the First new report above.
The major resource holding companies and mining groups continue to hold and increase their holdings when appropiate as now bargains abound.Since 1894 when Gold was first discovered in South Africa the mining of all kinds of resources has been fairly turbulent.How ever those that stayed invested were justly greatly rewarded.Of course our government does not always act in the best interests of mining and should be critisised for their actions,but it is worth mentioning that it is not government policy to nationalise the mines and this stance is unlikely to change.As with most of the world at the moment there is a great deal of discontent with a high unimployment rate.As the world recovers there will be more opportunity for jobs in industry and mining and then tensions are likely to ease.