Golden Prospect Precious... Share Discussion Threads

[atlantic57] 01/3/2022 11:09

The shoot out between the fed and the markets is the key in my view in respect of interest rate decisions.

[fordtin] 28/2/2022 19:52

Biggest portfolio shuffle for quite a while;

31 January 2022
The Company has exposure to 49 issues


31 December 2021
The Company has exposure to 62 issues

[fordtin] 28/2/2022 19:50

Golden Prospect Precious Metals Limited
Investment Commentary January 2022

"Precious metals were a little weaker on the month, with mining names trading down on interest rate concerns, but have since shown more encouraging signs. Sentiment towards safe havens have improved in February, supported by the inflationary back drop and tensions between Russia and Ukraine.

As inflation rates have surged globally, Gold’s role as a form of inflation protection has been questioned versus the expectation for more rate hikes. The general view is inflation is good for gold and rate hikes are bad. If we look historically, Gold has actually performed well during periods of inflation, despite rate hikes, which we break down by looking at the four such cycles since World War 2. This was most notable in the late 1970’s when inflation pressures were the greatest. Between 1976-80, Gold increased 396%. It gained to a lesser extent in 2004-06 and 2016-18, with only the hiking cycle in 1986-89 marking a fall in price.

Physical holdings in ETFs gained 1.4% in January, the first material addition in seven months. This is important as a key swing driver of incremental demand, especially against an already strong physical Gold market. The World Gold Council indicated total Gold demand surged 49% y/y to 1,147t in 4Q21, the highest level since 2Q19 and bringing full-year demand to 4,012t (+10% y/y). This was driven by
strong jewellery, central bank, and bar and coin demand. Jewellery demand should remain resilient as countries reopen, as highlighted by Gold imports to India up 153% to $55.7bn in 2021.

Palladium prices were supported by concerns over potential Russia/Ukraine conflict. Russia, represents ~40% of forecast 2022 global palladium production (ahead of South Africa) with Norilsk Nickel the primary Russian producer."

[papillon] 26/2/2022 00:22

MoneyWeek: The price of gold spiked yesterday, then collapsed – what happens next?.


Excellent article. Well worth reading.

[papillon] 25/2/2022 13:33

The American intelligence was correct, King_Baller. Biden said weeks ago that Russia would invade Ukraine. He also stated that they would wait until the Winter Olympics, in China, were over. Putin doesn't want to upset the Chinese! 😁
These Western sanctions could lead to recession. That could mean interest rates won't rise as expected. Tie that in with inflation and it's a perfect storm for gold & silver. I agree with you. GPM is the place to put your £'s.

[fordtin] 25/2/2022 13:25

Steve - hope you took notes, it was just a sneak preview ;-)

[steve73] 25/2/2022 13:00

Thanks Fordtin... useful to be able to see what the prices will be in Dec '22... ;-))

[vacendak] 25/2/2022 12:19

The NAV update was not earth shattering indeed. It has not shaken off its discount and it is still far off its 60p+ heydays.

[king_baller] 25/2/2022 12:11

Yesterday/today was a bear market bounce / retail risk on move. The higher energy prices due to the Ukraine crisis are increasingly bad news for future global growth, which was already due to slow from march onwards. This is very bullish for gold. You just have to look forward a couple of months. Not many better places to put £ to work right now than GPM.

I stupidly bought some Russian stocks earlier in the week, believing consensus that Russia was just trying to gain leverage. But no. Putin has gone full crazy. Used the bounce to sell out this morning.

[papillon] 25/2/2022 09:04

Back to normal for the gold price today.

[fordtin] 24/2/2022 20:02

re ! at last.
sorry Dave, not sure how long the December factsheet has been available, I took my eye off the ball and only remembered to look yesterday.

Oh well, can't help feeling the time might be ripe to take a renewed interest in gold and gold miners. Better late than never, give me a shout if I miss the January update ;-)

[stevieweebie2] 24/2/2022 14:09

be interesting to see tomorrows NAV. dont expect todays will light any fuses.

[vacendak] 24/2/2022 14:05

Yep, doing its job - at long last - of ensuring our portfolios do not sink as fast as they could without it as a component.

[davebowler] 24/2/2022 10:07

! at last.


22/02/2022


The unaudited net asset value (NAV) of the company is noted below in pence per share.

Pence per share
Golden Prospect Precious Metals Limited (TIDM:GPM): 49.88

[fordtin] 23/2/2022 10:04

December 2021
Investment Commentary

The gold price closed the month up 3% benefiting from the outlook that inflation will remain stubbornly persistent with US CPI rising to 6.8% for November and expectations for a further rise to 7% in December. However, despite this, related equities were little changed over the month and the Fund NAV slipped (0.7%) in December versus a (1.9%) sterling decline registered by the GDXJ.

Inflation pressures and the extent to which this provokes more hawkish central bank monetary policy response were the primary factors influencing commodity prices and broader markets over the month.
Against a backdrop of robust US GDP growth and strong employment data, subsequent FOMC commentary indicated that upward price pressures could last longer than expected and confirmed a doubling in the pace of FED tapering, to US$30bn per month, implying the process of quantitative easing should cease by March. Setting the scene for interest rates to rise sooner than previously anticipated, the FOMC’s median rate projections were revised up in its quarterly update with approximately three rate increases expected this year and a further three in 2023. However, indicative of the degree to which this has already been anticipated, the dollar index ended the month virtually unchanged while precious metal prices gained. Markets also took the rising number of Covid-19 cases in their stride, likely due to the less stringent lockdown measures, such as the UK’s reduced isolation period.

Useful contributions by Firefinch, which is progressing the spin out of its lithium asset, and Fortuna Silver, which belatedly received it official permits to continue mining at its San Jose operation in Mexico, helped offset seeming disinterest.

[atlantic57] 22/2/2022 18:24

Why Gold stocks have not surged ahead.

[papillon] 21/2/2022 23:06

I don't know what he's on, but I hope he's correct! 🤣

[atlantic57] 19/2/2022 21:04

Thanks pap it does not like to transpose
Links without editing

[atlantic57] 19/2/2022 19:07

hxxps://thedailygold.com/video-3-leading-indicators-to-watch-for-gold-breakout/

Jordan Roy - Byrne

[papillon] 19/2/2022 17:00

"Looking at the bigger picture, gold has created a significant 12-year cup and handle pattern, which would be completed once the $2100 level has been breached on a monthly closing basis. There are not too many examples of a multi-year cup and handle pattern in the major markets, and investors should understand how bullish this pattern can be when it occurs over a long period of time. The current cup and handle pattern in gold projects to a technically measured upside target of around $3,000."

This comment is from the above article. I've been going on about this bullish Cup & Handle pattern forming on the longer term gold chart for a long time!! I feel vindicated!