Pan African Resources Share Discussion Threads

[stonedyou] 16/3/2023 20:35

And rigged.....

[justiceforthemany] 16/3/2023 17:35

To be fair most gold miners and the market in general has tanked a similar amount in recent weeks. For PAF a P/E of just 4 is ridiculous however. This should be trading closer to 20p but the market is and always has been psychotic and schizophrenic.

[ih_103516] 16/3/2023 15:40

Other than Eskom, does anyone here have a plausible explanation of why the share price collapsed, even with gold prices hitting near all time highs?

[stonedyou] 16/3/2023 14:30

Oh, Texas, the land of cowboys, oil wells, and now, precious metals!

According to this article, Senator Tan Parker (R) has introduced Senate Bill 1558 (SB1558) which aims to treat gold and silver as actual money, not just fancy commodities.

And why would they do that, you ask? Well, to stick it to the man, of course! This bill could be the first step in undermining the Federal Reserve's monopoly on money.


Edward Griffin explains what the Federal Reserve System actually is: "It's a banking cartel”.pic.twitter.com/PozrJRet6h

— Antonio Sabato Jr (@AntonioSabatoJr) March 15, 2023


Specie

Under this legislation, Texans could use "specie issued by the United States" as legal tender for all public and private debts contracted in the state. And don't worry, they've defined specie for us; it's "a precious metal stamped into coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions." Ah, yes, because we all use our precious metals for retail transactions on the daily.


Fourth State

If passed, Texas would be the fourth state to recognize gold and silver as legal tender, following in the footsteps of Utah, Wyoming, and Oklahoma. And let me tell you, Utah is living the high life now that they've reestablished constitutional money. They even have the United Precious Metals Association (UMPA) where you can open an account denominated in U.S.-minted gold and silver dollars! Who needs a 401k when you can invest in literal coins?


Bullion Funded Debit Cards

But Texas isn't satisfied with just having a bullion depository, oh no. They want to take it a step further and use a bullion-funded debit card that seamlessly converts gold and silver to fiat currency in the background. Because who wants to wait for their investment to mature when you can just buy a latte with gold coins?

[stonedyou] 16/3/2023 14:11

Australian gold price hits all-time record.


The Australian dollar gold price hit an all-time record of A$2874 per ounce overnight, exceeding the previous high of A$2868 per ounce recorded on 6 August 2020, according to Melbourne-based gold mining consultants Surbiton Associates.

The record Australian dollar gold price has resulted from a combination of a high US dollar gold price and a lower Australian dollar exchange rate versus the US dollar. The conventional daily Australian dollar gold price is calculated using the London Bullion Market Association’s afternoon (pm) gold price fix and the Reserve Bank of Australia’s official exchange rate.

Dr Sandra Close, a director of Surbiton Associates, said: “US dollar gold prices have surged in the last few days due to the failure of three US banks, including Silicon Valley Bank, the 16th largest bank in the US. Yesterday’s public disclosure of Credit Suisse’s problems has now further destabilised the market.”

The knock-on effect has caused investors and depositors in the US and overseas to question the stability of other banks and has caused a flight to safety.

Dr Close continued: “Gold is the ultimate safe-haven, it is no-one’s liability. If you own gold, it is not a piece of paper, not bank note and not a promise to pay the bearer – it is all yours. Also, it is virtually indestructible, easily transportable and recognised all over the world. Although ASIC costs in the mining industry are rising, some of the producers are enjoying very high margins. In the December quarter 2022, operations such as Newcrest’s Cadia, (ASIC of A$49 per ounce); Evolution’s Cowal (ASIC A$1042 per ounce) and Capricorn Metals’ Karlawinda (ASIC A$1105 per ounce) had margins well over one hundred percent and are doing very well.”

Surbiton Associates’ Media Release on 5 March 2023 highlighted the importance of the Australian dollar exchange rate and the fact that Australian gold producers are benefitting from high Australian dollar gold prices.

[stonedyou] 16/3/2023 14:06

Spain Increases Gold Bullion Coin Offering To Meet Rising Investor Demand.


Spain’s government has authorized funds for the production of a new series of gold bullion coins to meet the rising demand for these products. The Spanish National Coin Factory will acquire 40 million euros worth of top-quality gold pieces, which is a significantly larger amount of gold than the previous coin series.


Spanish National Coin Factory To Issue New Batch Of Gold Bullion Coins
To meet market demand for gold bullion coins, Spain is gearing up to release a new series of such coins. The Spanish government allocated a budget of 40 million euros (approximately $43 million) in February for this purpose, with the majority of funds set to be used by the National Coin Factory to procure high-purity gold to mint the coins.

The approval of a budget of 40 million euros for the new gold bullion coin series is seen as an indication of the high demand anticipated for these coins. Industry experts believe that traditional investors may show an interest in these products due to the low volatility and relatively safe nature of gold and coins. While these coins have typically been marketed to collectors, they are now attracting a broader range of investors.

Spain’s Gold Market Booms As Demand Surges
The National Coin Factory in Spain is ready to issue its third batch of gold bullion coins, which will be the largest in terms of the amount of gold that will be purchased. The remaining two batches were minted in 2021 and 2022, with a mintage of 12,000 and 15,000 units, respectively.

In contrast to the current budget of 40 million euros for the new gold coin series, the budget for the first two issuances did not exceed 10 million euros (approximately $10.7 million). These coins are sold directly by the National Coin Factory and are priced based on the current value of gold at the time of purchase and a coinage fee of 10% charged by the Factory. The price of these coins remains consistent.

The surge in demand for gold-backed investment products is not limited to Spain. The World Gold Council, a market research organization, has reported that global demand for the precious metal reached an 11-year high in 2022. While a significant portion of this demand was attributed to central bank purchases, the Council also noted a 10% increase in investment demand for gold, reaching a total of 1,107 tons.

[stonedyou] 15/3/2023 07:46

Why Own Gold at All?


5 big reasons in times like these...

ALTHOUGH I think From Russia with Love is a better movie, Goldfinger is undoubtedly the archetypal Bond film, writes Sean Ring in Addison Wiggin's Daily Reckoning.

From Bond's Aston Martin DB5 to "No, Mister Bond, I expect you to die!" Goldfinger started many of the traditions and tropes we've come to expect from Bond films.

After Auric Goldfinger murders Bond's girlfriend by suffocating her skin with gold paint, M is concerned whether Bond can go on with the mission.

M asks, "What do you know about gold, (not paint, bullion)?"

Bond coolly and inimitably replies, "I know it when I see it."

Don't we all, Commander Bond?

And that's the thing. Most people intuitively understand that gold, the yellow metal that never rusts, is something special.

But no one really explores gold beyond that point.

So let's quickly review why it's a good idea to own at least some gold.

Gold shines like the sun – is malleable and divisible and never rusts. It was the perfect metal from which to make coins.

It also has a natural supply constraint. No more than 2% of the global gold supply has ever been mined in a single year.

Gold is also no one's liability, unlike Dollars. That is, if you own gold, you don't owe anyone anything.

But the USD is often referred to as a liability because it is a debt-based currency, meaning that it is backed by the full faith and credit of the US government.

When the US government issues Dollars, it is essentially creating a liability for itself, as it is obligated to honor the value of those Dollars by providing goods and services in exchange.

Of course, the difference between what it costs to produce one hundred Dollars (about 17 cents) and the value of goods producers need to provide to acquire one hundred Dollars is called seigniorage ($100 minus $0.17 = $99.83). It's a huge profit for the USG, which is why the French coined it "the exorbitant privilege".

There are five big reasons to own gold, especially in times like these:

#1. Store of value
Gold is often seen as a hedge against inflation and currency fluctuations. It's been used as a store of value for thousands of years and has maintained its purchasing power over time.

#2. Diversification
Gold is a tangible asset that isn't directly tied to the performance of other investments, such as stocks and bonds. This makes it an attractive option for investors looking to diversify their portfolios.

#3. Safe haven
During times of economic and political uncertainty, gold is often seen as a safe haven asset that can help protect wealth from market volatility and systemic risk.

#4. Potential for appreciation
While gold doesn't generate income like stocks or bonds, it has the potential to appreciate in value over time. This makes it an attractive option for investors looking to take advantage of price fluctuations in the gold market.

#5. Cultural significance
Gold has a long history of cultural significance and has been used for ornamental, ceremonial, and religious purposes for thousands of years. Owning gold can therefore hold sentimental value for some individuals.

So owning even a bit of gold always makes sense.

But right now, it makes even more sense because of recent price movements.

In March 2022, an ounce of gold traded up above $2065. Then the price fell to November's low of $1610.

It started to rally hard from there to reach about $1970 at the beginning of February. For some reason – probably the realization that the Fed will continue to hike – gold fell to its present price of roughly $1830.

But far from thinking there's more downside, nearly all my colleagues are looking at the upside.

Well, if you use the unadjusted high from 1980, that price is $850. But adjusting that $850 to 2023 Dollars gives you $3074.

That's 67% upside. And that's if you just buy physical gold. If you trade gold futures, ETFs, or gold mining companies, your upside can be much higher.

My friend and colleague Dan Amoss put together a great chart for Strategic Intelligence readers.

It shows a deeply inverted yield curve right now. That is, short-term rates are higher than long-term rates.

That happens in deep hiking cycles.

The thing is, when the hiking stops, and the yield curve snaps back to normal (long > short) from an inversion, gold tends to rally hard and fast.

We think that will happen sometime near the end of the year.

So now is the perfect time to buy gold if you haven't already. Really, I don't think you have missed the big move yet!

And there are other geopolitical events worth mentioning. Because more and more central banks are scoffing up gold to hedge against a USD collapse.

And if central banks are buying, the price will certainly get driven up. Sooner or later, USD hegemony will be a thing of the past. The only way you can protect yourself against that is to own gold.

There are some compelling reasons to own gold right now.

It's underpriced, has huge upside, and is about to get back to the adult's table in currency products.

History may look back on the Bretton Woods era and say, "Paper, schmaper..."



Publisher of Agora Financial, Addison Wiggin is also editorial director of The Daily Reckoning.

[lovewinshatelosses] 14/3/2023 21:04

Sadly not. I bought some more FRES and a maiden purchase in First Majestic the other day, so did not want to add yet more risk to my p/f, which is already heavily PM-weighted. IMO, if the Fed pivots (and whatever they do, the BOE and ECB will basically copy), or pauses rate hikes, then that will probably be bullish for PM's. In addition to the wider equity markets. A 25 basis point raise and markets will be slightly down I think, because this has already been priced in largely. More than that and everything is getting hit, including the miners. Given how poorly they have managed the situation for several years (indeed, IMO as far back as the GFC), I would not bet against them raising rates while going on another QE splurge at the same time. I do not know what effect that would have on markets - and I am trying to keep plenty of dry powder back...but it is difficult!
Still to be convinced that the banking sector crisis has been fully contained. I hope it has, but let's see how the next few months pan out.
Ideally, this one will power on to 20p, so I can take a decent top slice and re-balance the p/f again, but realistically it will take some time. Not on margin, so can hold and wait. And add further if those lower numbers do return.

[cinoib] 14/3/2023 18:40

Lovewin, hope you topped up at 13 this a.m. as I think 12 is out.

[stonedyou] 14/3/2023 16:22

Tuesday, March 14, 2023

Daily report

The US stock markets only stabilized
temporarily on Monday, but the major indices
once again closed in the red. In the Far East,
too, the markets reacted to the continuing
concerns about the effects of the collapse of
the Silicon Valley Bank with partly significant
markdowns. The upcoming central bank
meetings of the ECB and the Fed are thus likely
to become even more explosive and market
observers consider a slower pace of interest
rate hikes possible again. Today, in addition to
the turbulence in the US banking sector, the
focus is on US inflation data, which could
influence the Fed's decisions.
Gold and silver prices have risen sharply
recently, driven by safe haven demand in a
very choppy general market environment. Gold
rose by 2.6% yesterday, silver by as much as
6.9%. After a turbulent weekend in the wake of
the collapse of Silicon Valley Bank,
nervousness among traders and investors is
high at the start of the trading week - even
though depositors have been assured of
support.
Bloomberg recently reported that Singapore
added around 30% to its gold holdings to 6.4
Mio. ounces (~199t), the second-largest
monthly purchase in Singapore's history. BMO
analysts expect central bank buying to remain
robust this year (+559t), having already
reached a 55-year high in 2022.
Platinum (+4.4%) and palladium (+8.4%) were
also lifted up yesterday, with both precious
metals posting significant gains. Tuesday
morning saw a slight cooling of the heated
precious metals market for the time being and
the 4 main metals fell between 0.5% and 1%.
Rhodium remained largely unaffected by
yesterday's upward movement and continues
to be under pressure, which experts say is still
due to Asian sellers.
Sibanye Stillwater, one of the world's largest
PGM producers, is halting underground
production at the Stillwater West mine in
Montana, USA for four weeks due to an
incident during scheduled, non-routine
maintenance on the hoisting machine that
serves the vertical shaft that accesses the
deeper levels of the Stillwater West mine. The
incident could result in lower annual production
of 25,000 to 30,000 ounces Platinum and
Palladium. There was already a six-week
shutdown of the mine last year due to weatherrelated flooding.
Good luck and have a nice day.

[stonedyou] 14/3/2023 15:42

China’s gold market in February: wholesale demand strong, gold reserves rose further.


Key highlights:

Gold prices lost momentum in February. While the LBMA Gold Price AM in USD fell by 5%, the Shanghai Gold Price Benchmark PM (SHAUPM) in RMB saw only a 1% drop due to the RMB’s depreciation against the dollar

The Shanghai-London gold price premium continued to pick up, reflecting strong gold demand during the month

Gold withdrawals from the Shanghai Gold Exchange (SGE) totalled 169t last month, 30t higher m-o-m and 76t higher y-o-y

Chinese gold ETFs saw a mild outflow of US$45mn (RMB313mn), bringing their collective holdings to 47.4t (US$2.8bn, RMB$20bn)

The People’s Bank of China (PBoC) reported a further gold purchase of 25t, taking its total gold reserves to 2,050t by the end of February.

Looking ahead:

Considering recent local gold demand strength and the approach of Q2, which is traditionally an off-season of gold consumption, we expect gold withdrawals from the

SGE to remain strong in March and taper off in April
In the longer run we remain cautiously optimistic about this year’s Chinese gold demand.

The relatively conservative GDP growth goal of 5% set by policy makers is one of our key considerations – this could imply less-than-expected stimulus from policy makers and a challenging year of economic recovery. 1

While an economic rebound off 2022’s low is likely to benefit local gold consumption, pent-up tourism spend following the end of COVID restrictions may impact consumers’ budgets for gold.

Gold prices fell, local premium rose

Gold prices weakened in February. There was a 5% decline in the LBMA Gold Price AM in USD during the month. Meanwhile, due to a 3% depreciation in the RMB against the dollar, the SHAUPM in RMB saw a smaller fall of 1% (Chart 1).

[johnbull1] 14/3/2023 08:39

Agree that $20m upfront gold forward sale at $1909 is an impressive result. Some brokers such as Edison have 1750 gold for next year so they'll have to adjust that.

[stonedyou] 13/3/2023 20:37

Gold Keeps Rising as SVB Fallout Spurs Rush to the Haven Asset.


Unmarked gold bars at a gold and silver refinery operated by MMTC-PAMP India Pvt. Ltd., in Nuh, India, on Wednesday, Aug. 31, 2022. Gold held near its highest level in September 2022, as the dollar continued its retreat amid growing expectations that inflation may have peaked in the US. Photographer: Anindito Mukherjee/Bloomberg , Bloomberg

(Bloomberg) -- Gold and copper rose as the collapse of Silicon Valley Bank spurred investors to seek safe havens.

The American lender’s demise sparked such a severe drop in regional bank stocks that automatic trading halts were triggered on Monday. More broadly, more than half the companies in the S&P 500 Index fell while two-year Treasury yields headed for the biggest daily slump in decades.

“With two-year yields almost down 1% in less than a week and the market increasingly pricing away the prospect for a rate hike, gold has to go higher,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “Gold is the most rate- and dollar-sensitive commodity.”

It’s a rapid turnaround for gold, which in the year prior to last week’s rapid meltdown of SVB was down 12%. The precious metal has now jumped above its 50-day moving average, signaling a change in momentum.

Read More: Copper, Gold Tells Us Market Thinks Fed’s Job Got Harder

Spot gold rose as much as 2.4% to $1,913.13 an ounce. It has climbed roughly 5% since the March 8 settlement as concern over SVB grew.

Copper rose 0.9% to $8,950 a metric ton on the London Metal Exchange at 4:51 p.m. in London. Aluminum rose 0.8% with other base metals also recording gains.

©2023 Bloomberg L.P.

[cinoib] 13/3/2023 20:15

lovewin, well if Asc pays off then I will grab a few whilst they are cheap as I think that RNS was a blinder.

[stonedyou] 13/3/2023 13:21

GOLD / USD
$ 1902.19$ 1902.33 UP 35.261.89%

GOLD / GBP
£ 1568.89£ 1569.06 UP 16.961.09%

GOLD / EUR
€ 1775.10€ 1775.29 UP 21.231.21%

[lovewinshatelosses] 13/3/2023 12:27

I would be surprised if you do not get a chance again Cinoib. While I would be delighted to be wrong of course, I would be surprised if we do not at least have another low retest at some point in the weeks ahead. Sticking with my plan to buy more if 12's hit again and a lot more if it goes lower. But not buying more above that level.

[cinoib] 13/3/2023 11:08

Not yet, cash strapped just now, highly geared elsewhere.

[lovewinshatelosses] 13/3/2023 10:45

You back in then, Cinoib?

[cinoib] 13/3/2023 09:06

Well, now we know and he has obtained all that is required without any new shares, so well done that man. Maybe now we will see some recovery in the share price

[stonedyou] 12/3/2023 11:45

Silicon Valley Bank Officially Fails as FDIC Takes Over.


SVB held over $200 billion in assets, making this the second-largest bank failure in U.S. history.

The embattled Silicon Valley Bank (SVB) has officially been closed down by the California Department of Financial Protection and Innovation, making for the second-largest bank failure in U.S. history.

The Federal Deposit Insurance Corporation (FDIC) has been appointed as its receiver and will ensure all insured depositors gain full access to their funds by Monday, March 13.

Per a press release from the FDIC on Friday, the FDIC has simultaneously created the Deposit Insurance National Bank of Santa Clara (DINB) to protect SVB’s depositors, to which all insured deposits from the collapsed bank have been transferred.

Under the FDIC, insured deposits include account holdings of under $250,000.

Meanwhile, uninsured depositors will be granted a “receivership certificate” for their remaining uninsured deposits. The FDIC said future dividend payments “may be made to uninsured depositors,” as the agency sells off SVB’s assets.

“As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits,” stated the FDIC.

The agency said that it still needs additional information to determine exactly how much the bank’s total deposits exceed insurance limits.

SVB is the largest bank to fail since the Great Recession in 2008, when Washington Mutual Bank fell apart with $307 billion in assets, and was later acquired by JP Morgan.

Panic surrounding SVB began to spread on Wednesday after the bank announced an intended $2.25 billion raise and a $21 billion bond portfolio sale to restructure its balance sheet. The latter sale made the firm realize a loss $1.8 billion.

The following day, Paypal co-founder Peter Thiel urged companies to withdraw from SVB, while the bank’s CEO told clients to “stay calm”.

SVB’s attempted raise ultimately failed, and certain firms began examining the bank with possible hopes of acquiring it, according to CNBC.

The bank’s failure may be a partial reason for Bitcoin’s slide over the past two days to under $20,000.

Feature Image Courtesy of Bloomberg.