Shanta Gold Share Discussion Threads

[12strings] 23/3/2020 15:14

It's starting to look like the Fed's intervention this morning, that will continue, is going to limit the downside for shares. Volatility indices are starting to fall and there' little sign of gold showing weakness due to margin calls -- at least for now!

Given all this, gold is showing steady strength today and is 2.5% up on yesterday's close. I'm hoping for a close today above 1540. That would be a strong signal.

SHG is also responding, as it should. Regardless of the PoG, the news over the next 3 months should be good.

[qs99] 23/3/2020 14:50

Let's see if gold catches up with reality.....whether margin calls have now been realised, allowing it to rise with economic backdrop. DYOR but that should, in theory see the operationally leveraged miners CEY, POG, HUM, SHG, AAZ et al all head North.....oh yes and a fav of mine CAPD which helps drill for more of the yellow stuff.....DYOR

[redhill] 23/3/2020 14:33

2 Year investment ? Seems like a lifetime investment for me ! LOL

[12strings] 23/3/2020 13:22

Hey space_bob.

I can see where you get your 4.5p target for SHG ... serious support level and as yet only completed 3-4 waves down (and expecting a 5th).

It could obviously happen and if it does, I'm a buyer too. I've resisted adding this last few days just in case. But if gold remains supported by the Fed's ongoing interventions, I have a strong sense that 4.5p won't happen.

Either way though, we should all see SHG as a minimum 2-year investment. Helicopter money should inflate share prices, especially those of precious metals miners.

All IMO, etc etc

[12strings] 23/3/2020 13:12

Hi chestnuts,

The market seems to agree this morning. The US Federal Reserve have indicated that their "open market operations" will now be open-ended - in other words 'without a defined end". Helicopter money for as long as it takes and however much it takes to stabilise (stock) prices.

Gold bounced 2% in 10 minutes, and the DOW futures contracts bounced 1500 points, avoiding (Maybe??) another huge sell-off.

They're fighting off a looming 1929-style depression. It's now pretty safe to expect a rapid stock market recovery once the Coronavirus impact is over (12-18 months away??).

There's talk of 30% US unemployment and a 50% fall in US GDP. But if they can maintain people's income, and stay in their jobs, the economy should return fairly quickly.

But it's going to take massive currency printing, making sure that the people, not the companies, or company bosses, get the cash.

A good recovery will ultimately drive inflation when national debts are double what they are today.

A perfect storm for gold.

[juju44] 23/3/2020 12:58

FED going to print like crazy so gold to soar . Miners not interested

[qs99] 23/3/2020 12:57

Gold starting the week off with a big move....DYOR, will we see $1,600 this week and beyond? QE, helicopter money, expansion of state balance sheets, bail outs IMO this should all play to gold zooming through $2,000, not sure what is holding it back?! DYOR

[chestnuts] 23/3/2020 09:28

12 strings post 33141

You have taken the words out of my mouth, the governments must also know this and the end is near for the FIAT system

Governments dont have to nationalise the mines all they have to is buy the gold which they will,

[kennyp52] 22/3/2020 21:18

Shame we got to sell at $1250 with the hedge ?

[qs99] 22/3/2020 10:00

think we will see gold go ballistic next week as this thing goes from bad to worse....let's see....

[redhill] 21/3/2020 22:57

clotted cream

Yes i remember you talking about Walton.

I'm guessing the Patel's still pull the strings as they have a substantial holding.
One day i might pop over for the AGM but obviously not in the present climate.

[12strings] 21/3/2020 16:40

Hi space_bob,

Bullionbypost.com is a good source for precious metal prices.

On the issue of debt, this is of course a global issue and covers most currencies. But take the USA for example. The USA national debt today is USD23.5 Trillion. Government bond holders are financial institutions and individuals across the world. In return for lending the US Govt $23.5 trillion, they receive "interest" of around at least 1% a year, that's more than $250bn that is paid for by tax-payers. Already US govt are spending $1.2 trillion more than they receive in taxes every year.

So you can see how difficult it would be for the government to fund any increase in Central Bank interest rates. They are already out of control with mounting debt that will only be met at maturity by (electronic-) printing more $$$$. It is only the USD reserve currency status that will avoid the USA going bankrupt.

Outside the USA, the UK for example has a national debt to GDP ratio of over 80%. The higher the national debt, the more interest bond-holders will demand for funding an increasingly endebted country. GB pounds are not a reserve currency, they are not backed by gold (since 1982). So the currency can only weaken v the USD in the long term. I can see the reserve status of the US$ incurring the wrath of every other country in the world.

At the same time, the only answer for the all countries with out of control debt is to create price (and wage) inflation to "inflate the debt away". And because they will need to keep interest rates lower than inflation, that's exactly the conditions in which gold will be preferred to bonds.

That will ultimately cause a global financial reset bringing the present paper currency (backed by nothing) to an end.

That's the theory I buy into anyway.
DYOR oviously!!!!

[space_bob] 21/3/2020 13:51

I agree 12strings. I think we'll see several more bloodbath days (and several bear traps) ahead taking down gold and gold shares with it, but then I think we'll see the bottom for the gold price quite soon as people start to doubt the resilience of the whole financial system and national economies. My view is that governments have committed far too much money to support jobs and businesses.
The trigger I've set for myself is Shanta at 4.5p. That might sound crazy right now, but I think things are going to get a lot more crazy in the short term.
If it looks like this virus is starting to be controlled by the end of April I might start to look to buy in whatever the price. Either way gold is going to be at least $2k by the end of the year and continue to rise beyond that.
Very wise to be holding physical gold. I've heard it's going for almost double the spot price. But bear in mind what happened in the great depression.
Also good point on the £/$ exchange rate, this also benefits Shanta. Any idea if their debt is in £ or $?

[qs99] 21/3/2020 13:38

If a shed load of margin calls have been called in or settled, IMO this may help gold rise as those are cleared as it were, allowing it to reflect the actual stuff rather than ETFs etc? Thoughts?

[12strings] 21/3/2020 13:05

Seems there's wide agreement on this board that SHG is undervalued right now and that without price hedging and a rising gold price SHG is at least a very strong hold. Neither are they going to go bust, even if the gold price falls another 20%.

So I've been looking at what is, and what will in the future, drive the gold price.

I have a significant holding in gold bullion. And the rising USD/GBP ratio has made this a very good investment dispite the falling USD gold price. So the relative strength of the US dollar is critical to other world currencies.

IMO, the USD, as the world's reserve currency, will remain strong for the next 1-2 years. Helicopter money is being deployed in UK and US and will become a global Central Bank tool to sustain economies. So currency supply is IMO going to massively increase and thereby stoke up the risk of price inflation in the 2-5 year time period. That will be good for gold since the world will have so much debt, Central Banks will be unable to raise interest rates. Gold, rather than Govt Bonds will IMO skyrocket.

In the short term, the coronavirus is going to cause deflation, or even a recession. That too ought to be good for gold v shares or even low yielding bonds.

Finally, we know that the traded spot price of gold is not effectively backed by the metal itself. Rather they're dealing in futures contracts without even the intention to call in the contracts. It's just short term trading in paper contracts.

There is talk that bullion is in short supply (goldsilver.com) and that the actual cost of gold is already diverging from the traded spot price.

So ... there seems to be a reasonable argument that the gold price that the likes of SHG can command is likely to be well supported.

Clearly nothing can be for sure, but I've been putting my money more and more into gold and SHG (which I rate as the best gold mining investment opportunity I can find).

That's a brief summary of my research but I don't expect everyone to agree. So as always DYOR.

[clotted cream] 20/3/2020 21:38

Yes, went to 3 AGMs, breakfast in the government House hotel pre was interesting.
Always a good insight and chance to look them in the eye.

Greatest respect goes to Walton

Not that anyone will get that!

Nice to work out the drivers behind the ethos.

Do the Patel's/ export holdings still set the agenda, I hope so.

[redhill] 20/3/2020 16:55

It is but also a chance to chat to the directors.

[goodgrief] 20/3/2020 16:49

I suspect the AGM is just a read through of the resolutions. Don't ever recall a new company presentation ever being issued on the day of the AGM.

[qs99] 20/3/2020 13:45

haha, thought there may be someone who lived over there.....be nice if they could make these things "virtual" as well!

[goodgrief] 20/3/2020 13:33

Guernsey or Jersey a little off putting in present climate!

[qs99] 20/3/2020 13:30

Did anyone go to the AGM? Any good chat coming out of it?

[jc2706] 20/3/2020 12:49

The usual.

[qs99] 20/3/2020 11:42

no update from the AGM then?

[338] 20/3/2020 08:24

Are we going to see a start of V-shaped share price recovery?

[338] 19/3/2020 16:11

or

eventually Singida project is being listed?