Highland Gold Mining Ld Share Discussion Threads

[casual47] 17/10/2018 10:54

They are a useful reminder that if you have the means to have a varied portfolio that it pays to have some of it in actual gold.

How this translates to gold miners is a whole different kettle of fish. Should there ever be a collapse of Russia then good luck to all of us still holding HGM shares.

If you look at the super rich they tend to have only a comparatively small percentage of their assets in gold. When Trump had to release financial data for his presidential campaign it was revealed he only had between $101,000 and $250,000 physical gold investments.

So while the statistic of gold vs cash is interesting, cash is still king.

[11_percent] 17/10/2018 10:40

In the last 100 years the value of the dollar spending power has gone down by some 99.6% while an ounce of gold still buys what an ounce of gold did 100 years ago.

=======

Indeed, this is an interesting statistic.

The "value" of tangible assets stays roughly the same, in terms of gold, but as more Fiat currency is created (out of thin air) it takes more of it to buy the tangible asset.

This why you need an interest rate of at least inflation, on your savings account, to just stand still.

[stevedaytrader] 17/10/2018 10:25

Loganair- inflation has, and always will exist. Gold is good as people have always and will always desire it. For example, if 10 people existed in 2 locations, and 1 location had water shortage and a predicted draught, the other people would charge more to supply the water- humans are competitive by nature.
Gold is good as it is ALWAYS wanted by people- another example is the hyper inflation in Germany and more recently Venezuela- if I'd lived in Venezuela, I'd have wished I'd have bought gold bars with all my cash before the 13,000% inflation. Keeping it in local currency has made it 13,000 less valuable.

[casual47] 16/10/2018 21:35

Not sure what you mean re. free allowance. It's a pay as you go SIM, so you load up e.g. £10 and then they deduct whatever your call cost. If you only use that SIM for international calls and not for anything else then it should be good. O2 have a pretty good coverage.

[loganair] 16/10/2018 21:35

I notice no one has commented on an earlier post of mine:

Hungary’s central bank has announced the country has boosted its gold reserves tenfold. The regulator says it wants to improve the security of the nation’s wealth and to reduce risks.

The purchase of the precious metal takes Hungary’s holdings to the highest in almost three decades, but the country is still a relatively small bullion holder. It ranks outside the top 50 globally.

“It’s a strange move, a big increase, and it seems quite high,” Timothy Ash of Bluebay Asset Management told the Financial Times.

He said that “people are struggling to understand the logic behind it,” adding that at a time when Budapest was having “challenging” relations with Brussels, the move could be viewed as an assertion of independence.


Washington’s aggressive policy against Moscow could be a sufficient reason behind the recent fall of the dollar’s share of global central-bank reserves, according to Goldman Sachs.

Russia’s Central Bank has sold some $85 billion of its $150 billion holding of the US assets from April through June, says Goldman’s strategist Zach Pandl.

The Central Bank of Russia likely sold a large portion of its dollar-denominated assets, and perhaps all of its US Treasuries held by US custodians, and transferred them to euro-denominated and yuan-denominated bonds in the second quarter,” the economist said.

According to the recent data revealed by the International Monetary Fund, share of the US national currency in the global central-bank reserves declined to 62.3 percent in the second quarter with holdings in the euro, yen and yuan gained as a share of allocated reserves.

[loganair] 16/10/2018 21:33

These 1p per minute use up your free monthly allowance or the connection is not good.

For example is one get 1,000 free minutes with ones package, that is about 17 hours of international calls at 1p per minutes will use up ones 1,000 free hours then is become something like 12p per minute after that.

I looked at O2, if ones makes many hours of international calls is actually quite expensive, there is also 60p connection charge etc however it doesn't matter how many minutes I call with my provider, I pay 5p per minute or 1p per 12 seconds and no connection charge.

[casual47] 16/10/2018 21:26

"90% of my phone bill per month is made up of international calls."

Ouch. It's worth thinking about getting a separate pay as you go SIM e.g O2 international SIM and then you only pay 1p per minute for calls abroad.

[loganair] 16/10/2018 21:24

F2 - As I mentioned phone bills are one of the few services that have decline in price on a like for like basis, however i doubt they will continue to decline much further.

My family lives all over the world, the older members still use landlines so around 50% and some months 90% of my phone bill per month is made up of international calls.

[casual47] 16/10/2018 21:19

EE. Though I haggled, it's not one of their available contracts.

If you spot a deal just call your provider and ask to be put through to the disconnect team (or whatever they are called) and ask them if they can match it.

If you don't call your mobile/broadband/etc provider every year or so (or when contract is nearing end) then you are probably overpaying (and subsidising people like me).

These guys have good info + the good deals:

These are some of the deals available now so maybe your current provider can match them (all have unlimited text):

iD Mobile: 1GB, 500 mins: £5/mth
Plusnet: 1.5GB, 2,000 mins: £6/mth
iD Mobile: 4GB, 500 mins: £8/mth
Plusnet: 4GB, 3,000 mins: £8/mth
iD Mobile: 7GB, 500 mins: £10/mth
Plusnet: 6GB, 3,000 mins: £10/mth

[fangorn2] 16/10/2018 21:09

"I don't pay for texts, data or even phone calls anymore, i just pay 5 quid a month and still have most of my minutes/data left unused."

Sacre bleu

Who is your provider, and what contract are you on?

[loganair] 16/10/2018 20:21

Buying a house is most probably the most expensive thing a person ever buys.

I would not say that household stuff is a lot cheaper. if you ever watch Open all hours, crisps 3p a packet, the same packet today costs 70p.

A lot of house hold stuff, the price hasn't risen, however for the same price the quantity has gone down. Last year comfort softer £2 for 1.5ltrs this year £2 for 1.26ltrs giving a price rise of 19%. Washing up liquid same price, less quantity up 12%, shampoo up 15%.

Clothes use to be 100% cotton, now 70% cotton 30% man made fibre, smaller pockets or no pockets at all so not comparing like for like, quality for quality.

Taking a plane can not be compared as with many other products one has to compare quality and quantity - to compare like with like.

When I was first a pilot we never left base with even the smallest maintenance issue, now days planes depart base often with 10 or 20 things that need repairing. Luggage, food etc was also provided in ones ticket, now one may have to pay £60 to take one piece of hold luggage return and a further £15 on food and beverages per sector. Passenger has more leg room. Pilots were also properly rested, with 1 hour turn rounds, now days pilots are flying maximum hours with minimum rest and just 25 minute turn rounds. If there is any sort of delay or technical problem, in the past another aircraft could be brought in very quickly or a rested crew brought in whereas today one delay, knocks on to a further delay down the line therefore what one pays to day and the service a passenger gets today can not be compared with yesteryear.

Phone bills have substantially reduced over the past 10 years, due to many more people using their mobile phones therefore cheaper per unit however I think over the next 10 years we'll not see too much more of a decline in phone bills as we are past the best of any price reductions.

In many things one may think of as cheap or even free, they are not as the customer is now the product. To get things cheap the customer is selling there personal information so again one has to be careful to compare like for like.

[loganair] 16/10/2018 19:03

What I'm saying is there is no such thing as 'Inflation', prices do not go up, it is the Value of Money that goes Down.

In the last 100 years the value of the dollar spending power has gone down by some 99.6% while an ounce of gold still buys what an ounce of gold did 100 years ago.

[stevedaytrader] 16/10/2018 18:21

Interesting stat Loganair- but it all depends on what you compare with what... interesting nonetheless :-).

[ken tennis] 16/10/2018 17:31

Loganair the statistics in your post 13224 very interesting I like stats like that it puts things in perspective as to what's really happening with AU price.

Regards Ken

[loganair] 16/10/2018 16:40

Hungary’s central bank has announced the country has boosted its gold reserves tenfold. The regulator says it wants to improve the security of the nation’s wealth and to reduce risks.

The purchase of the precious metal takes Hungary’s holdings to the highest in almost three decades, but the country is still a relatively small bullion holder. It ranks outside the top 50 globally.

“It’s a strange move, a big increase, and it seems quite high,” Timothy Ash of Bluebay Asset Management told the Financial Times.

He said that “people are struggling to understand the logic behind it,” adding that at a time when Budapest was having “challenging” relations with Brussels, the move could be viewed as an assertion of independence.


Washington’s aggressive policy against Moscow could be a sufficient reason behind the recent fall of the dollar’s share of global central-bank reserves, according to Goldman Sachs.

Russia’s Central Bank has sold some $85 billion of its $150 billion holding of the US assets from April through June, says Goldman’s strategist Zach Pandl.

The Central Bank of Russia likely sold a large portion of its dollar-denominated assets, and perhaps all of its US Treasuries held by US custodians, and transferred them to euro-denominated and yuan-denominated bonds in the second quarter,” the economist said.

According to the recent data revealed by the International Monetary Fund, share of the US national currency in the global central-bank reserves declined to 62.3 percent in the second quarter with holdings in the euro, yen and yuan gained as a share of allocated reserves.

[casual47] 16/10/2018 16:08

Big swings gold vs e.g. S&P500

[uknighted] 16/10/2018 15:26

LA Interesting, but I don’t follow your point regarding 1965 unless you meant to say “average priced house 53 years ago”.

[casual47] 16/10/2018 15:26

Gold standard had nothing to do with UK house prices quadrupling since 1995

[casual47] 16/10/2018 15:09

Loganair, does that gold-house price thing work also for e.g. buy gold to the value of an average priced house in 1965 then will it be the same value as an averaged priced house in say 1985?

I think what has happened to the house prices in the last two decades or so is perhaps rather exceptional.

Clearly the value of a lot of consumer goods has dropped significantly e.g. computers, so in some areas there is actually a deflation

[loganair] 16/10/2018 15:05

Has anyone noticed on this thread how the price of gold closely correlates to the average house price in the UK.

25 years ago instead of buying an average priced home, one bought gold, those same amount of ounces today would still buy one the average priced house.

If one goes back further, to 1965 and instead of buying an average price house, bought gold instead, believe it or not this same amount of gold would buy you the average priced house 25 years ago and the average price house today.

Therefore this suggest there is no such thing as inflation, over the past 50 years prices have not go up rather the value of money has gone down while the value of gold has remained constant.

[stevedaytrader] 16/10/2018 08:25

Thanks Casual47- I put in some money and hgm divis into CEY- I think one set of decent results will pull this up a lot, but it could go down before then, but the risk/reward is balanced in favour. I see the markets going up too from this blip although the dollar will weaken in my view and gold will rise a bit, the FED will ease up a bit- the mood words will become a tad more dovish which will help this. I thin kHGM will rise towards around 160 when the ftse starts to increase again. At the mo, I continue to hold my HGM and CEY, but may short the CEY ones to gain more between now and their next results.

[casual47] 15/10/2018 19:01

Thanks ;)

I think the stronger impact on the HGM share price next couple of months will be whatever the sector-wide movement is rather than momentum from within. CEY had a bit more catching up to do so it has had a stronger rise but it is now also rising with the tide, as it were.....imo.

I personally think there is likely to be a pullback over the next few weeks in the sector and consequently HGM and CEY. I don't have the gut feeling that "the market" is really convinced about the strength of gold. I can see the dollar and US stock markets rally after the mid terms. For what it's worth, my money is on much better than expected results for the republicans.

Depending on what gold and the sector do I can see CEY veer toward 90p again, at least until the BOD have provided guidance on 2019, which isn't due until end of the year. The main spectre there is whether the production impact will carry over into 2019. Guidance will help on that but they may have to deliver before it stops spooking the market (I.e. q1 results).

HGM this side of Christmas I think will bob along. Depending on any pullback maybe play footsie around the sma50 (high 130s)