Pan African Resources Share Discussion Threads

[plasybryn] 10/1/2023 13:07

Could it be Basel 111. Gold now a tier one asset

[stonedyou] 10/1/2023 13:00

BRICS undermine dollar hegemony with gold purchases.

Central banks have been accumulating the precious metal at a record rate.


Just before the New Year, the Financial Times ran a piece noting that central banks were accumulating gold at a rate not seen in 55 years. In the third quarter of 2022, analysts estimate that almost 400 tonnes of gold were bought by central banks. That much gold would take around 16 semi-trailer trucks to transport.

In November, traders in the gold market noted that there was a huge buyer entering the market and purchasing very large volumes of gold — a so-called ‘whale’. In December it was revealed that this whale was the Chinese central bank. But it wasn’t just the Chinese buying gold. Other buyers include Turkey, India, Uzbekistan, Egypt, Qatar, and Iraq. It is worth noting that many of these countries have expressed an interest in joining the BRICS+ alliance.



Why are central banks snapping up gold? Most commentators recognise that it is due to geopolitical turmoil. Jonathan Guthrie at the FT, for example, argues that “gold is the currency of fear and mistrust,” and that “the democratic west and the authoritarian east are pulling apart amid mutual recriminations”. Guthrie is certainly correct that a geopolitical schism is taking place, but since when is gold the currency of mistrust? Throughout history gold-backing has been used to buttress trust in currencies — when sterling was the global reserve currency it was said to be “good as gold”.

Our period of paper currency is the exception rather than the rule, and it only started in 1971 when the US dollar link to gold was broken. It was 1967 which saw levels of gold purchases by central banks comparable to what we observed at the end of 2022. All of this raises the obvious question: what if these purchases signal the beginning of the end of the paper dollar as the global reserve currency?

It seems unlikely that the countries buying gold are going to try to give their currencies gold backing. But it appears probable that the immediate cause of the rush for gold is an attempt to diversify out of dollars. Since the United States seized Russia’s dollar reserves after the invasion of Ukraine last year, other countries have grown distrustful of holding dollars as they fear that they, too, could see their reserves seized in the future. Hence the race for gold.

Perhaps there is no plan behind the current gold rush, but it may be read in retrospect as the beginning of the evolution of a new global monetary order. It could be the first step toward this reshaping of the landscape, as countries around the world try to find alternatives to the dollar. The West is learning a hard and fundamental lesson: financial systems are built on trust, and if they are weaponised they lose the trust required to maintain their dominance. It would be strongly in our self-interest to attempt to rebuild faith in our financial system if we want to protect our global power.

[cinoib] 09/1/2023 17:31

To add, we are just 50 points from an all time high on the ftse.

[stonedyou] 09/1/2023 12:19

PBOC boosts Gold purchases by 30 tonnes in December..



The People's Bank of China (PBOC) published on its website over the weekend that it bumped up its holdings of Gold by 30 tonnes in December, following an increase of 32 tonnes in November.

In doing so, the Chinese central bank’s gold reserves increased to 2,010 tonnes

Previously, the PBOC reported an inflow of gold in September 2019 and October 2016.

Market reaction

Gold price is getting an additional boost from the encouraging report from China, closing in on the highest level since June 2022 at $1,879.At the time of writing, Gold price is adding 0.47% on the day to trade at $1,876.

[astjgroom] 06/1/2023 21:27

Hi Cinoib, do you really believe the worst is behind us? For me it's just beginning, Inflation, unemployment, smaller GDP, higher taxes, war, high energy prices, strikes, the list is pretty endless...

[lovewinshatelosses] 06/1/2023 19:50

I shaved a few here too, along with a couple of my other holdings. Just replenishing the reserves in the hope/expectation of having new or existing buying opportunities at lower prices than today. While my p/f is loving this market rise, my head does not trust it one bit! Good weekend all.

[cinoib] 06/1/2023 18:03

cleto, well let's hope so, but I dumped a few yesterday in favour of something more stable for which the short term outlook is bright as the recession starts to peter out. In my book, which have read a few times now. The worst is now behind us.

[cielos] 06/1/2023 13:15

The Gold shares have been in a bad shape for some time, maybe soon will be the time to start moving higher with the gold price.

[cinoib] 06/1/2023 12:51

NTV, you are not alone, but had some crumb of comfert this morning with Nano.

[ntv] 04/1/2023 21:10

I have bought some in the last couple of days. hopefully it will break higher to help compensate for my O/G losses. Not a good last 3 or 4 months for me and not a good start to the new year either. Bah humbug

[linton5] 04/1/2023 15:55

Laggard this stock I see compared to others might be worth taken some before it tries to catch fres

[astjgroom] 04/1/2023 11:21

$1900 will make a significant difference for all miners IMHO

[cinoib] 04/1/2023 09:21

Seems we are trying to move forward a little as gold heads for $1,900 here's hoping the trend continues. $2,000 by end of month would be nice.

[stonedyou] 03/1/2023 11:14

Gold prices in India today jump to highest in over 2 years.


Gold prices in India rose to over two-year highs, tracking firm global rates. On MCX, gold futures were up 0.6% to ₹55,546 per 10 gram while silver jumped 1.4% to ₹70,573 per kg. Gold had hit record highs of ₹56,200 in August 2020. In global markets, gold today jumped to six-month high with the dollar index remaining steady. A weakness in US dollar makes greenback-priced bullion more attractive for overseas buyers. Spot gold was up 0.8% at $1,838.69 per ounce while spot silver rose 1.1% to $24.25.


“Dollar index trend has been weak for 3 months and Gold prices have taken a better outcome from the falling dollar as prices of Gold have seen a 10% jump in last quarter of 2022 with prices rose from 50000 to 55000 in MCX," said Jateen Trivedi, VP Research Analyst at LKP Securities.

[lovewinshatelosses] 29/12/2022 13:23

I agree the share price action feels 'off'. Not adding further, for now. Hopefully it will be a decision I regret!

[cinoib] 29/12/2022 13:11

Something not quite right here, we still keep drifting down inspite of $1800 being broken.

[stonedyou] 28/12/2022 10:41

Russia's largest bank issued gold-backed digital financial assets.


Russia’s largest bank Sber — formerly known as Sberbank — reported the first issue of gold-backed digital financial assets (DFAs). The bank considers DFAs to be a “great alternative” to investments amid dedollarization.

On Dec. 26, Sber published the news about its first issue of gold-backed DFAs. A diversified metals seller and manufacturer, Solfer, became the first investor to obtain the issued assets. Gold-backed DFAs represent certifying monetary rights, whose price and volume depend on gold prices.

According to juridical documentation of the issuance, the bank will provide up to 150,000 DFAs for potential investors to buy. The DFAs will be available to acquire until Jul 30, 2023. The document mentions “the high risks” for investors, ingrained in such kind of assets, including “the risk of illiquidity.”

The first deputy chairman of the Executive Board at Sber, Alexander Vedyakhin, claims these kind of DFAs to be an alternative to traditional investments amid the dedollarization, caused by the international financial sanctions, imposed on Russia in the aftermath of its invasion to Ukraine:


“We expect the number of corporate clients on our platform to grow rapidly and plan to expand the product line of digital financial assets.”

[mrscruff] 27/12/2022 14:57

Hi I am new here but sold PAF in 2013 at the same or higher share price as today (maybe much more, there was equity raising I was involved in). I think I was right to be out of this and gold. Looking to re-enter gold now and was really disappointed with the lack of share price growth. As rubbish as PAF seemed I see net debt has been massively reduced since those days so...

This should result in dividend growth and the company must also do more regular distributions, but I have much to catch up on research-wise.

[spaceavenger] 24/12/2022 17:31

Even my posts are rigged. I didn't spell market with a capital M. Pahhhh

[spaceavenger] 24/12/2022 17:30

Merry Christmas to all you followers of the totally rigged gold Market. Totally rigged EVERYTHING if you ask me, but you don't.

[justiceforthemany] 23/12/2022 17:39

No that is nothing new.
Solar plant mitigates that in any case.
ZAR gold price is what matters to PAF and it is up 10% year on year.