Just in: The South African Reserve Bank just lowered interest rates by another 1%, the second time in a month.
This puts the South African repo rate at a historic low!
We can write essays about what the lower interest rate means for business and consumers. But in short - lowering interest rates historically has meant one thing for gold. Its price goes up!
And as you can see in the c... ››› more
The gold price sits at R23,044 an ounce - with its recent all time high at R23,721 per ounce.
In early 2018 gold was below R16,000 an ounce. So the shiny metal is up around 44% in 2 years!
This is being driven by the weak rand, as well as a rising dollar gold price.
Within mere months I expect we will see the rand gold price hit R26,000 levels.
... ››› more
Q. "Hi Timon, I have a question about the article you sent out on Monday with the five reasons you expect the gold price to rally.
Do you believe that the Coronavirus outbreak is another reason to get into gold and why?"
A. There does seem to be a strong correlation between the spreading of the virus versus the increase in the gold price.
In fact, on Friday we saw gold move... ››› more
Crazy to think we are near the end of January, and already I'm seeing green signals flashing on my screen.
In fact, the main sector that is showing major upside to come is in resources.
It looks like resources will be the trading and investment darling for 2020.
And what better way to start than with a strong prediction with the leader of all resources - GOLD.
Today I'm going to re... ››› more
In October 2019 the US Federal Reserve Bank announced that instead of shrinking its balance sheet by $50 billion a month it is now PRINTING $60 billion worth of money extra per month!
That's right… The bank was in the process of unwinding the nearly $4 trillion worth of money it printed to get the US economy going following the 2008 financial crisis.
Now it is printing more money each mo... ››› more
Right now there's one sector I'm particularly excited about on the JSE.
I recently banked a 150%+ gain from a share in less than 4 months in this sector, and I believe it has only started running.
I'm talking about Gold…
And while the shiny metal itself has delivered investors very good returns over the years, right now gold miners are in an even better position to profit.
Let me... ››› more
The rand is at R15.37 to the dollar - the weakest we've seen since the Zuma era. We can blame this on NHI, EWC or a string of other three lettered government policies that aren't business friendly.
But at the end of the day the whole world is running scared right now.
Thanks to the US trade war, negative bond yields in many European countries and increasing world debt.
In fact, for t... ››› more
By definition, Penny Stocks trade at R10 or less and they're typically small companies with big growth potential.
These investments are attractive because small share price moves translate into large percentage gains - or losses if you pick the wrong stock. In short, these are volatile investments, so you're advised to use caution.
But if you're looking for one of these top penny stock com... ››› more
Russia is hoarding gold. The country has bought around 230 tonnes of gold since the start of 2018.
What's more - back in the year 2000 Russia held 830 tonnes of gold - its gold reserves now total more than 2,119 tonnes!
Russian central bank gold reserves are soaring
In fact, there are reports that the Central Bank of Russia is studying a proposal to create a gold-b... ››› more
The last time gold was at $1,400+ was back in August 2013.
But on Tuesday 25 June 2019 it hit a high of $1,436 to an ounce.
Currently the gold price has pulled back a bit from this sharp rally and sits at $1,408.
But here’s the thing – on 28 May gold sold for $1,276 an ounce. So the shiny metal is up 10.3% since then.
What’s behind this ... ››› more
In August 2018 the gold price traded at $1176. Since then it's shot up in a near straight line, hitting $1307 on Tuesday 29 January…
For South African's the current gold price is even more significant…
You see, in rand terms the gold price is very close to its one year high…
In February 2018 the gold price was R494,365 per kilogram. Today it sits at R572,615 per kilogram.
... ››› more
The JSE was up 3,6% last week, adding to gains from the week before. The All Share index is now up 5% in two weeks, Resources 8,2%, Industrials 4,6% and Financials up 1,3%.
January is known to be a month with larger moves than normal, double digit figures are quite common. Watch out for the reversal in February. 2016 was a case in point…
Commodity Prices were firm with good gains from Pla... ››› 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
Since the result of the Brexit referendum came in last week, investors have watched millions disappear from the companies in their portfolios. This week, it's the South African financial stocks that took the brunt of the impact.
- Nedbank (JSE: NED) is 4% lower this week
- Standard Bank (JSE:SBK) fell 4%
- Barclays Africa (JSE: BGA) also took a 4% knock
- While FirstRand (JSE: FSR) fell ... ››› more
Over the last two months we've seen the gold price trickle from its low at $1,053 to $1,292 an ounce.
South African investors worldwide are piling into gold stocks.
This is a big problem according to my analysis.
You see, South Africa might have been the world's biggest gold producer, but not anymore!
In 1970, South Africa produced over 67.7% of the world's gold production.
But now it... ››› more
Major news websites like Bloomberg, Forbes, CNBC, Moneyweb have been ranting about gold's major rally. It's gained more than 20% so in 2016.
Even here, in MoneyMorning, we've been punting gold as a crucial investment to own in 2016. I've been jumping on the gold wagon myself since 2015.
But today I don't want to talk about gold.
I want to talk about another lucrative alternative inves... ››› more
Gold stocks have suffered with the fall in the price of the yellow metal.
Since gold started to fall in value in April 2013, investors have taken $54 billion out of gold exchange traded products. That takes holding to their lowest level since 2009.
Yet in spite of investors shunning gold and a looming interest rate hike in the US, there are four main factors that suggest the time is coming t... ››› more
The time may be nearing to buy gold stocks.
Gold stocks have had a very rough ride since the price of the yellow metal started its decent. This means there are a lot of gold producers trading at fantastic levels.
So how can you buy the best stocks on the market once the price of gold starts to climb?
Read on to find out…
The relationship between gold and stocks
Over the past fe... ››› more
With the plunge in the gold price, gold stocks have also suffered.
When prices start to get really low, many investors start to wonder if a recovery is on the cards and whether it's a good time to invest.
So when should you consider investing in gold stocks?
Read on to find out…
Gold stocks have followed the gold price lower
Since peaking in 2011, the gold price has ebbed lowe... ››› more
If you're thinking about investing in gold, it's a good idea to have a look at the factors behind its price first.
These factors include supply, demand, trend and sentiment.
With these factors in mind, where is the price of gold headed for the rest of the year?
Let's take a closer look…
Gold so far this year – the driving factors
During the first quarter of this year... ››› more
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