Lonmin has been one of the great stories of value destruction for investors.
Since my first warning about the company in 2012, it has lost 96% of its value.
Simply put - it's been a big one to avoid.
Crypto Revolution: How the rise of bitcoin and cryptocurrencies could turn every R2,000 you stake into R980k
My warnings on Lonmin since 2012
... ››› more
The rand started out 2017 at 13.78, and quickly strengthened to R12.42 in mid-March.
This would've negated strengthening commodity prices world-wide.
The price of copper, ferrochrome, gold and aluminium all rose during 2017.
But - fortunately for South African producers of these commodities the rand weakened yet again, now trading in the R14 range.
And that means all of these commo... ››› more
WTI Crude oil hit a low of $22 a barrel in early 2016. It then rose for much of the year, ending the year at $53.
But since the start of 2017, the oil price is down around 12% to $46.60.
So, with the oil price at lows, should you look at investing in the oil sector again?
Is demand growing fast enough or is supply still too high?
Get everyt... ››› more
The revolution in electric vehicles set to upturn industries from energy to infrastructure is also creating winners and losers within the world's biggest commodities markets.
When Tesla first passed Ford's market cap, it was a big deal.
The bigger news came later, when the electric automaker passed General Motors.
Now Tesla's technological revolution in electric cars has paid off again.... ››› more
The gold price in rand terms just hit its highest levels since April this year.
It has averaged around R16,400 per ounce for 2017, with a spike to R17,600 in April following Pravin Gordhan's axing.
More recently, the rand has weakened following yet another unsuccessful vote of no confidence in President Zuma.
At the same time, the dollar price of gold spiked with tensions between the U... ››› more
At times like this, gold and silver typically grab all the attention... And attract all the "safe" money. But there's another metal that could blast past both of these. That's because it has unique physical properties for which there is just no substitute - something its biggest consumers lose quite a bit of sleep over. It's 15 times more rare than platinum... and 30 times more rare than gold. Rea... ››› more
South Africa sits with the ‘achievement' of having 8 out of the world's ten deepest mines.
While this is clearly an achievement in engineering - it's a problem specifically for our gold mining industry.
Production costs have skyrocketed, accidents in the deep mines make it even more difficult to profit.
In fact, in the 1970's South Africa produced as much as 80% of the world's gold,... ››› more
The mining sector is in talks with mining minister Mosebenzi Zwane on 25 and 26 April 2016.
This comes after the release of the new “Draft mining charter”.
In the draft mining charter the minister of mining set new requirements for mining companies in South Africa.
You might think this doesn't affect you as an investor. But it does.
Even if you're not invested in... ››› more
Between July 2015 and 21 January 2016 the JSE's Resource's index crashed a whopping 63.89%. Mining and resource shares all over were crushed as investors clamoured over one another to shout "SELL" harder than their neighbour.
But since the end of January 2016, there have been THREE important announcements that spell the end of this downturn. At least for a couple of tiny miners on the JSE.
I... ››› more
The Rand has crashed to R16.70 a dollar.
On 30 November 2015 a Bloomberg report speculated the rand could hit R20 to a dollar.
Then on 8 January 2016 a Fin 24 report again reiterated the R20 to a dollar level for 2016 and Cees Bruggemans, a well known economist predicts we could see R22.50 to the dollar before 2018!
In short, if you're not investing in rand hedge shares you're losing mone... ››› more
I recently wrote an article detailing the unstoppable global trends that have made many people billions of dollars throughout history.
Just to recap, the trends are energy (renewables), technology, war, healthcare and demographics.
I said that these trends have been at the centre of wealth creation since the dawn of time. And as we look towards the future, these trends will continue to gener... ››› more
It doesn't seem that long ago when the prices of commodities were hitting the lights out.
But the commodities super cycle is definitely over for now.
So why were commodities doing so well? And what's changed?
Let's take a closer look…
The recovery of commodities
Back in 2000, prices of commodities hit historically cheap levels. Take zinc. When you adjust its price for i... ››› more
As the global economy recovers from the financial crisis, one sector that is still bearing the brunt is commodities.
Commodities are at multiyear lows, but this doesn't mean there aren't opportunities to take advantage of.
So where should you look to put your money in the sector?
Read on to find out…
The woes of commodities
It’s not easy to find commodities that a... ››› more
Commodity prices are at multiyear lows. It's hard to find a commodity which is thriving in the current climate.
One commodity to stay clear of at the moment is copper. If the charts are anything to go by, this metal still has a long way to fall.
Let's take a closer look at what could lie in store for the metal…
Don’t underestimate how far copper could fall
The price of c... ››› more
In the middle of last year, the oil price started its decent. This year, the price of oil has struggled to get above $60 a barrel.
In the past when demand for oil ebbed, producers pulled back production to help the price out. But this time around, producers continue to pump oil out of the ground.
This leaves the industry with a bit of a problem. What to do with all the excess oil? But this p... ››› more
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