We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Woodburne Sq | WSAG | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 3.75 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 3.75 | 3.75 |
| Top Posts |
|---|
Posted at 16/3/2012 00:29 by ro5enberg Not sure who won the battle, if there was a battle, but a nice healthy day as far as the share price was concerned.. With such a minuscule market cap, there is now only way the value can go and that is much higher. Not sure many participants have picked up the fact we now have some new hard hitting directors and a new strategy backed by some big names. The realisation will set in once name change to Stratmin Global Resources Plc becomes official and then we will start receiving some serious news and with it broader awareness. The current name has a certain stigma no doubt that prevents potential investors from taking a closer look at the game changing events here. Having said that, I anticipate a continuation of the current uptrend here in anticipation of the above. Rest assured that Jeff Marvin is not here to look after a company with such a tiny market cap and instead is here to create a company worth a few hundred million on behalf of Mr B. Based on publicly available information, most on this thread, we should have a baseline value of over 15 million and geared up to move higher awaiting news. This equates to a share price of around 25p. No ramp intended. |
Posted at 15/3/2012 11:29 by gurp Wh1spa........hopefu(prescription specs £6/pair from select specs - I like bargains, think we've got one here) but 4.54 to buy now & at least 50k available online so who knows? interesting xcap your comment re sophisticated investors, helps me feel more comfortable when I sense that is the case. at the other end of the scale I punted gmg y'day, 180% up atm but bb a farce, similar gkp & other popular bb's low m/c here a comfort, very large rises certainly not the exception these days when cos. finally come onto the radar |
Posted at 15/3/2012 10:18 by hellisreal Graphite Goes Critical: A Look At Noteworthy Canadian JuniorsBy Nathan Pearson and Rachel Harrison By now you've heard the buzz: graphite is the next hot resource stock. But why should investors care about this mineral that has gone largely ignored by the stock market since the mid 1980s? The answer lies in a compelling story of supply and demand, and a future that looks to prove heavily reliant on the new industrial applications and green technologies that graphite is an integral part of. From a skyrocketing demand for lithium-ion batteries to the futuristic promises of graphene, the graphite market is one of the most closely watched in the junior exploration industry. Graphite: Beyond the Pencil Carbon - the building blocks of life itself - consists of three distinct types: amorphous (think coal, soot and charcoal), diamonds and graphite. Graphite is then further divided into amorphous, crystalline flake and lump/vein, all occurring in metamorphic as well as igneous rocks, and varying by grade, particle size distribution (mesh) and moisture content. The valuable properties of graphite are numerous: it's an excellent conductor of heat and electricity, is extremely resistant to strong acids as well as thermal shock, is a phenomenal lubricant, is highly refractive and has the highest natural strength and stiffness of any known material. These properties make graphite the best - if not the only - choice for industrial applications such as steel manufacturing, brake linings, clutches, lubricants, crucibles, reinforcements in plastics and our favourite elementary school writing tool - pencils. Although the historical applications noted above use all types of graphite, newly emerging technologies and a rising demand for alternative energy are creating a never-before seen need for flake graphite. Major drivers include lithium-ion batteries, fuel cells, solar panels, pebble bed nuclear reactors and Proton Exchange Membrane technology. Perhaps the most exciting feature in the graphite market of the future is the development of graphene, produced when one-atom-thick sheets of graphite are separated from one another. It is the thinnest and strongest material ever developed, being two hundred times stronger than steel and several times tougher than a diamond. Property-wise, it conducts both electricity and heat better than copper. This important discovery resulted in Professors Konstantin Novoselov and Andrew Geim - the pair to first isolate graphene - winning the 2010 Nobel Prize in physics. Potential future uses of the material are numerous, from playing a major role in the evolution of LCD touch-screen technology to usage in transistors, solar cells and data and energy storage units. Some say that graphene could end up replacing silicon altogether with its ability to enable transistors to operate more than twice the speed of its silicon counterpart. Limited Supply Meets Increasing Demand Because of new industrial applications and increased importance of green technologies demand for graphite is rising sharply, while supply falls behind at a startling rate. The rapid industrialization of developing nations such as India and China has contributed to a steady increase in graphite demand of five percent per year for the last decade. Between 2000 and 2011 total graphite consumed doubled from 600,000 tonnes to 1.2 million tonnes. Byron Capital Markets expects to see this figure increase to 2.6 million tonnes by 2020. Another factor in rising demand is the insatiable consumer appetite for gadgets such as laptops, cameras, cell phones, mp3 players and even power tools which all require the lithium-ion battery. Betraying its own name, the lithium-ion battery takes twenty to thirty times more graphite than lithium to produce. The only natural graphite suitable for these batteries is flake, which only makes up forty percent of the Earth's available stores. A Canaccord research report states that, "Annual flake graphite production will have to increase by a factor of six by 2020 to meet incremental lithium carbonate requirements for batteries". Additionally, we're seeing a steady rise in electric vehicles which require up to seventy kilograms of graphite per vehicle depending on whether or not it is a hybrid, while fuel cells, according to the US Geological Survey, have the potential to use as much graphite as all other uses combined. It is clear to see that our future could rely heavily on an increased supply of graphite, but the question is, where will it come from? Currently, China controls over seventy percent of the world's graphite market, but depleted reserves in older, deeper mines paired with increased consumption within their own steel and automotive industries is keeping them holding on to what they've got. The country has imposed a twenty percent export duty combined with a seventeen percent VAT and export licensing system resulting in graphite prices to rise considerably, especially when it comes to flake. As Industrial Minerals Magazine says, "The days of cheap, abundant graphite from China are over." The world's remaining thirty percent of graphite production is carried out in India, Brazil, North Korea, Madagascar, Sri Lanka and Canada. Many new graphite sources will be required to meet the burgeoning demand; it is estimated that up to twenty-five more mines worth of new production could be needed. The British Geological Survey has declared graphite a critical material and the European commission included graphite among the fourteen materials it considers high in economic importance and supply risk. It is for these reasons that graphite prices have been swiftly on the rise. Prices for graphite are determined by flake size and purity, with premium product being large flake (+80 mesh), high carbon (>94%) graphite. This grade currently commands up to $3000 per tonne-twice the price from 2010 and nearly tripling since 2008. Exploration Companies to Watch While scoping out potential exploration companies to invest in, investors will want to take note of properties that have shown near-surface, high-grade, large-flake deposits and are in politically and economically safe areas with a sound infrastructure. Canadian companies are a natural choice and there are several contenders that may offer investors some great value. Northern Graphite Another Ottawa-based junior with a bright-looking future is Northern Graphite (TSX-V: NGC), who recently closed their $4 million initial public offering with shares going for .50. Their current market cap tops off at $65.24 million and shares have already risen to $2.22 as of March 13, 2012. Northern Graphite's Bissett Creek property is located between Ottawa and North Bay, Ontario just 15 km from the Trans Canada highway. The property contains a whopping resource of 25,983,000 tonnes grading 1.81% Cg (470,300 tonnes of contained graphite) and inferred resources of 55,038,000 tonnes grading 1.57% Cg (864,100 tonnes of contained graphite) and remains open on strike and down dip. This high purity deposit of large flake graphite is comprised of fifty percent +48 mesh jumbo flake 98% C, thirty percent +80 mesh large flake 94% C, seven percent +100 mesh medium flake 94%C and thirteen percent +200 mesh small flake 94%C. This flake production has been proven in a recent Pilot Plant at SGS Lakefield. The size of the deposit paired with the high percentage of large flake within makes this property one of the leading undeveloped graphite deposits in the world. Because output will consist almost entirely of the large flake graphite that our future will rely on, Northern Graphite's product will have no problems commanding a premium pricing of $3000 per tonne. According to a NI 43-101 compliant assessment on this property, forecasted annual production at the mine will top 20,000 tonnes per year of 94% graphite. And because the project is scalable, the mine has the ability to expand as demand increases in the years to come. Timeline-wise, Northern Graphite is set to have an action-packed Q2 with the expected release of a bankable feasibility study, the first permit of the environmental and mine permitting process obtained and construction on the mine planned to commence after the feasibility study results are in. The mine will take approximately one year to complete and production is slated to commence in Q3 2013. Northern Graphite is backed by a solid management team headed-up by CEO and Director Gregory Bowes B.Sc. (geology) MBA. Mr. Bowes has gained over twenty-five years of experience in resources and engineering, and past titles include Senior Vice President, Orezone Gold Corporation; Vice President, Corporate Development and CFO, Orezone Resources Inc.; and President and CEO, San Anton Resource Corporation. His team-members include Iain Scarr B.Sc. (geology) MBA, Director; Ron Little P.Eng, Director; Jay Chmelauskas B.A. Sc. MBA, Director; Donald H. Christie, Director; K. Sethu Raman Ph.D, Director; and Donald K.D. Baxter P.Eng, President. |
Posted at 13/3/2012 12:31 by marab xcap 1. we formally change name and ticker (what's going on on that front?) That still won't tell people about the graphite investment but it might encourage some of those mentally and financially scarred by WSAG/DXR to have another look here. Still haven't got a reply to my email request for information regarding the new epic, but as we know they aren't/weren't in the UK lately. 2. full particulars of the MAD deal are expounded and released to the market, providing details of the mechanism to increase our equity interest I agree we would all like to see that, if for no other reason than to prove it wasn't such a mad investment :) 3. we give the market a corporate/investor presentation, and I think joining minesite.com (for £3000 pa i thinks) to get wide(r) coverage and a live annual presentation is well worth it. It will be interesting to see if the directors push their investments or not. They probably have the contacts to raise funds without seeking out other investors so will there be any point in doing the minesite route? 4. announcement in Q2 that first production has commenced (hopefully without delays) That would be nice, and lots of celebratory drinks of sparkling mineral water. |
Posted at 11/3/2012 09:44 by xcap "Graphite and Rare Earth Metals for the 21st Century: Jack LiftonTICKERS: FMS, NGC; NGPHF, SER Source: The Critical Metals Report Editors (2/7/12) The list of once-obscure metals and minerals that are becoming "strategic" seems to be growing daily. However, population growth and rising living standards in developing countries are driving demand for most raw materials. In this exclusive interview with The Critical Metals Report, Institute for the Analysis of Global Security Senior Fellow Jack Lifton explains how increasing demand and harder-to-mine deposits are raising prices on these essential materials. COMPANIES MENTIONED: FOCUS METALS INC. - NORTHERN GRAPHITE CORPORATION - STRATEGIC ENERGY RESOURCES The Critical Metals Report: In the last five years, investors discovered lithium and the rare earths. What will be the next big thing? Jack Lifton: The answer is graphite. Graphite has traditionally been considered a boring, mundane industrial mineral, evoking thoughts of pencils, golf clubs and tennis racquets. Investors should think again. Traditional demand for graphite in the steel and automotive industries is growing 5% annually, and graphite prices have tripled. New applications such as heat sinks in computers, lithium-ion batteries, fuel cells, and nuclear and solar power are all big users of graphite. These consumers are beginning to place substantial demands on existing production-and over 70% of that production is from China, which is no longer selling this resource cheaply to the rest of the world as the country's easy-to-mine, near-surface deposits are becoming exhausted. Graphite's criticality and potential scarcity has been recognized by both the United States and the European Union, which have each declared graphite a supply-critical mineral. Recently, the British Geological Survey ranked graphite right behind the rare earths and substantially ahead of lithium in terms of supply criticality. Clearly, there is much more to graphite than pencils. TCMR: What about graphite makes it so important to all these end-users? JL: Graphite and diamonds are the only two natural polymers of carbon. Both are very strong, can withstand extreme heat, and resist attack from chemicals and corrosion. While a diamond is a three-dimensional crystal structure of carbon, graphite possesses a two-dimensional flake crystal structure. Graphite is also a very good conductor of heat and electricity. Due to its amazing chemical and physical properties, new industrial, commercial and high-technology uses for graphite are constantly being discovered. The lithium-ion battery is one of the fastest-growing uses of graphite. Each one actually contains greater than 10 times more graphite than lithium. These batteries are already widely utilized in the consumer electronics industry in devices like mobile telephones, laptop and tablet computers, and media players. Other new technologies like fuel cells, will also drive demand. Fuel-cell-powered forklifts are in use in American warehouses. Some fuel-cell-powered taxis and buses are already found on city streets, and most major car companies will join Hyundai in producing fuel cell vehicles by 2015. To be clear, electric and fuel cell vehicles will not replace the internal combustion engine, however, they are part of the solution to reducing dependence on non-renewable energy resources and make a great deal of sense in many applications. Telecommunications companies are employing fuel cells around the globe for primary or backup power at cell phone towers and substations. A range of facilities, including stores, universities and business parks, are also using this clean, efficient technology for low-cost power that works independent of the grid. Fuel cells convert chemical energy from a fuel source, often hydrogen but also natural gas or even an alcohol like methanol, that chemically reacts with an oxidizing agent like oxygen to create electricity. Because they operate at relatively low voltage, fuel cells are typically placed in series or parallel circuits to increase voltage and current. Fuel cells generate fairly low levels of emissions, as well as water and heat. In large installations, this heat can be captured and used for climate control and to produce additional power through cogeneration. General Motors has already invested more than $2 billion in automotive fuel cell research and development, and is believed to be seeking additional investment from industry peers in exchange for rights to use the technology. German automotive companies BMW and Volkswagen both own stakes in SGL Carbon SE, the world's largest maker of carbon and graphite products. Just how much graphite will be required for fuel cells? The proton exchange membrane fuel cells being developed for use in cars would require 100 pounds of graphite per vehicle. The U.S. Geological Survey noted in 2010 that "large-scale fuel cell applications are being developed that could consume as much graphite as all other uses combined." Graphite is also projected to be a key component in next-generation nuclear reactors, which are expected to reach temperatures of 1,000 degrees Celsius-triple the temperature inside today's commercial reactors. Graphite is one of the few substances that can resist such heat, with initial tests by researchers at the Idaho National Laboratory indicating that it can actually absorb heat as high as 3,000 degrees Celsius. Pebble bed nuclear reactors are small, modular reactors that are safer than conventional reactors because they "die" on their own when shut down. They are fueled by tennis-ball-sized graphite spheres with uranium embedded in them. Substantial amounts of graphite are required to charge the reactor at startup, and a percentage of the balls must be replaced each year as the fuel is spent, which creates ongoing demand for graphite. China has an operating prototype and is now building the first two commercial units, with plans to have 30 by 2020. These reactors are one of the top 16 priorities in China's 2020 strategic plan. The vanadium redox battery, which offers great potential for storing excess energy generated by renewable energy sources like wind turbines and solar cells, is another notable emerging technology that would require significant amounts of graphite to produce. These batteries, which offer significant storage capacity, long life, low maintenance requirements, and a nominal environmental footprint, require some 300 tons (t) of flake graphite per 1,000 megawatt of storage capacity. TCMR: Isn't there plenty of graphite in the world to go around? JL: Natural graphite deposits can generally be characterized as one of three types: crystalline flake, amorphous or lump, also known as vein graphite. Total annual global graphite production increased substantially in the 1990s as China dumped graphite on world markets. Prices crashed and exploration and development in the rest of the world ceased. Production has now held steady for several years at approximately 1.1 million tons (Mt) as China appears to have reached the limit of its productive capacity and the commodity super cycle has soaked up excess supply. Since 2005 prices have basically tripled, and supply is tight. Graphite mining and processing is currently limited to a small handful of countries, with China, India, Brazil and Canada the leading suppliers. Only 40% of world production yields flake graphite, the most desirable type for its suitability in high-value, high-growth applications. Only flake and synthetic graphite, which is made from petroleum coke through a very expensive process, can be used in lithium-ion batteries, the current demand driver for this crucial substance. 321energy.com owner Bob Moriarty recently commented, "If you believe in lithium-ion batteries, you would do far better by investing in a good graphite company than a good lithium company. . .With demand for graphite growing at 50% per year and prices reaching $2,500-3,000 a ton, the future for graphite companies with actual projects is excellent." TCMR: What about the introduction of graphene, single-atom-thick sheets of crystalline flake graphite? How will the use of this material in phones and touch screens impact demand? JL: Professors Kostya Novoselov and Andre Geim of the University of Manchester were awarded the 2010 Nobel Prize in Physics for their work with graphene. British Chancellor of the Exchequer George Osborne recently committed ~$80 million (M) to graphene research, a quest embarked on by almost every major research center and university as well as hundreds of companies, from IBM and Intel to Silicon Valley startups. Graphene is being studied for use in ultra-high-speed microprocessors, as it conducts electricity at a rate 30 times faster than silicon. IBM is examining whether graphene's magnetic traits will allow it to be utilized in medical devices to spot diseases in their earliest stages. The company is also working with the U.S. Department of Defense's Defense Advanced Research Projects Agency to investigate whether graphene can improve mobile phone efficiency, wireless signal clarity and radar quality. Nokia is researching graphene's potential use in cell phones and touch screens, with the latter usage expected to become commercialized relatively soon, potentially in a foldable phone. One U.S. Department of Energy researcher believes that graphene's energy storage potential will lead to the development of batteries that will triple the range of today's electric vehicles without increasing battery size or weight. In collaboration with South Korea's Sungkyunkwan University, Samsung researchers have created a flexible touchscreen several feet wide from "printed" graphene that could eventually be commercialized in strong, lightweight, flexible solar cells, touch sensors and flat-panel screens, perhaps maybe even directly integrated into clothing. While research-and-develop TCMR: If the price goes too high will manufacturers simply engineer graphite out of their products? JL: At the recent Graphite 2011 conference in London, Colin Cooper of Graphexel Ltd. said "new technologies [are] unlikely to overtake the graphite market demand for traditional end uses-such as refractories, metal casting, and lubricants-as the fundamental need for graphite in these lower value sectors [is] not going away." However, these traditional industrial users will find themselves competing for supply with those producing new technologies as there are very few, if any, economically feasible alternatives available and very little recycling of graphite. The main technology that these traditional uses will be competing with in the near term is rechargeable lithium-ion batteries. Graphite serves as the anode in lithium-ion batteries, and there is no substitute for it in this application. Due to their advantages relative to other battery types-including their comparatively light weight, lack of memory effect, slow self-discharge rate and environmental safety-the lithium-ion battery industry is growing 30 to 40% annually as products such as power tools, consumer electronics, and hybrid and all-electric vehicles switch from other, inferior battery technologies. Already, plug-in electric vehicles like the Chevy Volt, Nissan Leaf and Tesla Roadster rely on lithium-ion batteries, and the gasoline-electric hybrid models that have used nickel-metal hydride batteries for the past decade are making the transition to lithium-ion technology. The electric vehicle market is expected to grow as much as 20% annually by 2020, with expectations that between 36M such vehicles will be manufactured in 2020, each of which will require approximately 40 pounds of graphite for the battery system alone. Both U.S. President Barack Obama and Chinese leaders have stated that they want to see 1 million electric vehicles on the roads by 2015. An estimated 1 Mt additional graphite will be needed annually by 2020 for electric vehicles and other emerging applications. TCMR: If current annual flake production is around 400,000 tons, where will all this new production come from? JL: This booming demand will require more than a doubling of current global graphite production to meet the needs of traditional markets like North America and Europe, as well as such emerging markets as China, India, Russia and Brazil. Total graphite production across the globe has been consistent in recent years at approximately 1.1 Mt annually. China's production is suitable only for industrial applications such as steelmaking and lubrication rather than high-tech uses like batteries and graphene. China already imports a significant amount of the graphite mined in North Korea. Fortunately, graphite reserves are present around the world, though many sites would require several years of development and significant investment to begin production. Countries known to have reserves of highly valuable flake or crystalline graphite include Austria, Norway, Germany, Italy, Madagascar, Sri Lanka, Russia and Canada. Governmental bodies have shown increasing concern about graphite's importance. The U.S. Department of Homeland Security's Critical Foreign Dependencies Initiative lists Chinese graphite mines as essential sites that would damage American interests if attacked. Graphite was also determined to be high in terms of both economic importance and supply risk in a 2010 European Commission study of 41 raw materials....." theaurreport.com |
Posted at 10/2/2012 18:24 by engelo m4riola: thanks for your corrections!Leaves us with Consmin 20.3% @ 3p, AUM 4.8% & ?,'New investors' 7.2% @ 3.25p . This adds up to 33.3%, but possible that AUM are one of the 'new investors' at 3.25p and the other(s) don't need to declare as under 3%. Anyhow imo they all think they're onto a good thing, and who am I to disagree.... |
Posted at 10/2/2012 15:50 by engelo marab: let's see/guess what we do know.Consmin own 21.87% and paid 3.0 for them. Sahney owns 14.4% (avoided telling us the price paid or when bought) AUM own 4.8% 'New investors' own 7.2% the last 3 are up to date, Consmin's holding will have been diluted by 7.2 % so now about 20.3% This adds up to 46.7% Interestingly, if 'new investors' shares were handed out to AUM with a top up to Sahney this would be in the 39.5% range. It seems clear to me (dyor) that (a) all the above are acting together and (b) that they have largely paid something in the range of 3p to get them. So it seems rude not to take a few off the table at to-day's price, which I have done! I don't believe any of this team are in this to lose money and so (assuming we lose the preemption vote I'm not too worried if they display the sort of skill and energy that the graphite investment represents.t |
Posted at 05/2/2012 16:04 by marab EDIT thanks to gregpants I have now discovered why some non blue posters could post to the BOB thread and others couldn't. If you search through the PBB button only blues can post, but if you search from the FREE BB non blues can post. Apologies for the inconvenience.I have started a new thread to help investors decide which online broker to use and I would be grateful for any advice posters might have in that respect. Some of you have been trading shares for years and have probably tried most of the available sites, so I hope you will share your opinions and help other investors find the best online broker. I will be posting this on a few threads, because if no-one knows about it it ain't going to achieve much, so if it annoys you please say so on the HAM thread. BOB Best Online Brokers - |
Posted at 10/1/2012 15:22 by jojo_jo marab, They clearly want outside investors (private and institutional) or, again, why bother. So they must be willing to share the spoils, and costs, with those investors. Once listed they could well re-finance to recoup if they wanted. Global Gold may want to repay the $2.5m they borrowed off ABB, fairly quickly. Like Abramovich and other Oligarchs, Bogolyubov could well be trying to expatriate his money. Things have a habit of being confiscated in the FSU and Russia! $5m is peanuts for the likes of ConsMin I guess, unlike you and me. Looking at the figures already being bandied around, the capital structure of WSAG could end up looking like this impo: £5m>GlobalGold, £5m>ConsMin, £5m>WSAG = £15m total. Remember this is a clean shell with a few million in net assets. Looks feasible. I'm sure it's all being thrashed out as we speak. All IMPO. Jo. |
Posted at 10/4/2011 13:44 by drrichard From Kefi thread, cyberpostGold and silver fever grips investors By Jennifer Hughes, Jack Farchy and Gregory Meyer Published: April 8 2011 19:08 | Last updated: April 8 2011 19:08 When Jean-Claude Trichet announced a quarter-point jump in interest rates this week, gold and silver prices dipped as the European Central Bank chief emphasised his inflation-fighting focus. But the two well-known inflation hedges were only temporarily dented by the tough talk; on Friday silver pushed above $40 a troy ounce for the first time since 1980 and gold pushed to a new all-time high in nominal terms at $1,474.19 The metals' rallies have clear links to rising fears about inflation. But recent predictions for silver to hit $50 and gold to breach $1,500 are based on more than just these fears. "Both markets actually have surplus supply. Demand for both is good particularly industrial demand for silver but this isn't enough to absorb all the supply," says Suki Cooper, precious metals analyst at Barclays Capital. "That leaves the rest down to investor demand." Investors have indeed been piling in. Holdings of gold to back exchange-traded funds the popular way for retail investors to gain exposure jumped 19.9 tonnes on Thursday alone in the biggest single inflow since late January, according to Barclays. On the same day, holdings of silver jumped 42 tonnes to another record at 15,554 tonnes. Interest itself has been triggered by a range of factors, not least geopolitical tensions. After a weak January, prices of the metals spiked higher in February when the unrest that toppled governments in Tunisia and then Egypt sent investors scrambling for havens. During the financial crisis, investor fear manifested itself in strong demand for physical holdings. In spite of recent turmoil, there has not been the same scramble to buy physical supplies this time round. "The fear factor is not as key right now," says Osvaldo Canavosio, a hedge fund analyst at Man Investments in New York. "At the height of the financial crisis, in precious metals there was a bit of a panic to hold physical." Yet the haven buyers were out in force again on Friday, watchers said, as investors braced for a potential shutdown of the US government if last-ditch talks between Republicans and Democrats fail to reach agreement. Retail investors are showing particular interest in silver coins in many countries, including the US. Last month the Utah state legislature passed a bill accepting US gold and silver coins as legal tender and other states are considering similar legislation in a direct rebuke to the Federal Reserve and its ultra-loose monetary policy. "Utah has crossed the Rubicon, others are likely to follow suit," says Daniel Brebner at Deutsche Bank. Analysts and investors now see $1,500 gold and $50 silver as likely to be breached in the coming months, as the potential for looser monetary policy for longer in the US weighs on the dollar. Commodities, including gold and silver, are typically priced in dollars so a weaker dollar boosts raw materials prices. The euro hit a 14-month high of $1.4443 against the dollar on Friday. Some gold bugs are even betting on a third round of quantitative easing, dubbed QE3, by the Federal Reserve, after its current scheme ends in June. "Expectations that QE2 could be followed by QE3 are higher in the gold market than in other markets," says Edel Tully, precious metals strategist at UBS. This could leave gold investors setting themselves up for disappointment. "I would expect gold to march to $1,500 sooner rather than later," says Ms Tully. "Towards the end of this quarter gold could hit a stumbling block if QE2 ends." An end to QE would tighten US monetary policy but it would be a small step compared with the inflationary impact of soaring oil and food prices, which have pushed real US interest rates nominal rates minus inflation to negative levels, analysts say. "Gold is ultimately dependent upon real rates, which are a function of both inflation expectations and monetary policy," says Jeffrey Currie, head of commodities research at Goldman Sachs, which forecasts gold will hit $1,625 by the end of the year. "A top in gold prices will only become apparent when the risks of sovereign default are behind us with a clear and successful exit of the stimulus we've seen over the last few years." Negative real rates are not just a US issue; the same is true in China where demand for bullion is skyrocketing, bankers say. "The cost of carry [the difference between interest on deposits and non-interest bearing gold] is zero," says Walter de Wet, head of commodities research at Standard Bank. "It incentivises money to be invested in assets." Analysts are, however, less confident on silver, whose move higher has been so dramatic that many believe a sharp correction could soon be on the cards. "I'm less convinced we're going to remain so high, if only because we're expecting a generous increase in mine supply," says James Steel, commodities analyst at HSBC. "Short-term, we could go higher, but it's increasingly vulnerable to a correction." |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
