Shanta Gold Share Discussion Threads

[12strings] 24/3/2020 21:47

Hi 338,

My understanding is that the refiners pay miners for the gold content of the "dore" bars that they produce at the spot (or otherwise agreed) price. The refiners remove the stuff that isn't gold (other metals including silver) and the coins and bullion that they produce are sold at a premium to the gold price that covers their costs plus profit less whatever they get for the extracted metals.

So we can compare the average price that SHG get to the spot gold price (i.e. apples v apples)

Someone better informed may correct me?

[nielsc] 24/3/2020 19:06

Hard work,Yes you are correctFrom zero hedge"As Kitko notes, just before noon EDT, one price vendor was showing spot metal was trading at $1,612.10 an ounce while at the same time showing the Comex April futures were at $1,654.10 an ounce – a spread of $42 an ounce. It was much wider earlier in the day, when as Kitco adds, "nearby futures were more expensive than deferred, a sign of strong demand in any commodity market.""Cheers,Niels

[338] 24/3/2020 18:38

shanta can send pure gold to Baird & Co in the UK to get refined 👍

Do you know the price difference between pure gold pre and post refinery process?

[12strings] 24/3/2020 12:29

IG have stopped taking bets on gold - their spread would be $8/oz !!!

Apparently Swiss gold refiners have started closing down due to the virus precautions (ref: goldsilver.com)

I checked Tanzania's situation - they have 12 cases, no deaths, all people entering the country from a Coronavirus infected countries (including nationals) are quarantined for 14 days.

That sounds reassuring for SHG. Mining in some countries will and perhaps are already being affected.

So with the obvious demand for gold, the supply looks like it will be constrained.

This could be very interesting!

[338] 24/3/2020 12:15

A perfect V-shaped price reversal

[hard work] 24/3/2020 12:03

Is Kitco's the futures price?

[jc2706] 24/3/2020 11:31

I have never seen the gold price quoted differently on goldprice.org and kitco but it is. Kitco seems out of kilter with the rest of the world. Very odd.

[hard work] 24/3/2020 11:26

...but IG showing $1600?

[nielsc] 24/3/2020 11:02

Kitco is showing US$1660Cheers,Niels

[juju44] 24/3/2020 11:01

Yep it might be on its way thanks to the yank printing press. That Kitco chart is rubbish

[qs99] 24/3/2020 10:53

boom, $1,600 achieved....

[12strings] 24/3/2020 10:42

Well, the moves overnight and this morning have really been interesting.

Technically SHG is possibly in the 4th of a 5 wave pattern (the fifth being down). But what a strong 4th wave. It's starting to look like the fifth (down) could be a weak move.

Gold has recovered 60% of its drop from $1700/oz in a V pattern - could that have more than 2 waves???

So what has changed in the last 24 hours??

- QE & Helicopter money big time. Gold started it's way back up in the 2008 crisis once QE began. Cutting interest rates didn't do it. I'll look at the 2008 factors again to be sure.

- Govts are trying to make Coronavirus a 3 month event. Keep people's jobs open in the meantime and pay them to stay put. We're being told that in 2-3 weeks, if quarantine and social distancing is applied seriously, we should start to see a reduction in the daily confirmed cases. Perhaps the market is anticipating good news by mid April? The FTSE, DOW futures etc are all looking at 5% up today.

If someone can gag Trump and stop him trying to steepen the curve, maybe he won't kill so many people. That would help !!!!!!!!!!



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[qs99] 24/3/2020 09:35

cmon Shanta, let's break previous highs.....CEY heading to £1.50 IMO at these prices....POG looking good. HUM below 30p IMO looks odd

I agree with other threads that risks to workers in mines are short term as surely they are all under 50-60? DYOR

[jpuff] 24/3/2020 08:38

? Money is being created everywhere you look, be it from quantitative easing or increased budget deficits, which should be the ideal environment for gold and gold miners, but they have yet to perform. This could be a chance to top up on two of our metal diggers: Centamin and Resolute Mining.There remains the risk that gold is caught up in another dash for cash in the event of a further rout in stock markets. Equally, it may become the case that the insurance gold offers isn't in the end needed. But who would like to bet that stimulus will be rapidly withdrawn if current policies succeed? Not Questor. Both stocks are worth buying.As always, read more in the latest column:? *A wave of money from central banks and governments should be good for gold*https://bit.ly/2wxccTeRichard Evans

[qs99] 24/3/2020 08:37

Good news on confirmation of convertible time period. Gold heading through $1,600.....possibly beyond....all golders heading North....AAZ and CEY going crazy...DYOR

[nielsc] 24/3/2020 08:15

Looks like gold is doing a V Shaped recovery. Physical gold shortage driving the price now.Shg may have seen its lows- perhaps too soon to say. Depends on whether mine can stay open or not. As others have pointed out it is really only the developed world that can have the luxury of stopping work. Cheers,Niels

[space_bob] 23/3/2020 21:23

This could go many different ways and really hard to judge with so many factors involved, such as long overdue correction, massive worldwide debt, the virus, the oil dispute - only thing missing is a war, but give it time!
I think employment will hold up after a short term hit and related to that, house prices will largely hold up. Problem will be the eye watering increase to an already eye watering amount of government debt.
Pretty much every downturn in history has played out over several months/years rather than several weeks. I still think the market has at least 20-30% to go and will take gold and gold shares with it initially, but then gold will rise very strongly. Makes it hard for me to judge when to buy into Shanta. I plan to buy in for very long term so I'd be happy around 6p, but might gamble to wait and see if it goes to 4.5p. Shanta shares get knocked all over the place because it's such small cap.

[chestnuts] 23/3/2020 20:16

12 strings
I agree on oil but the market is swamped and it will take a couple of yrs to get back to $50

At some stage the house prices will collapse and interest rates will go up, when Japans housing market collapsed it went down 80%
So i expect the UKs housing market to follow suit
So all the buy to lets who pyramid buying and never paid the capital down will go bankrupt and i know one or two people who did this and some are very arrogant and normally i wouldnt gloat but i will on this occasion

[12strings] 23/3/2020 19:36

I don't expect inflation short term. After a couple of years, yes. Your view is virtually the same as mine. The price of oil has been driven by the OPEC argument between Russia and Saudi's Crown Prince who has open the taps on ME oil production. I don't expect it to last longer than the Coronavirus impact.

They may have given the US shale oil operations a costly black eye, they're also shooting themselves in both feet. More oil + Coronavirus = Overflowing storage facilities. The US will probably stop buying ME and Russian Oil.

I can't see any other outcome - they're going to have to agree on a common sense solution that brings oil back up to $50/bbl this year.

[chestnuts] 23/3/2020 18:07

12 strings

At the moment with the measures the governments are doing they are avoiding a depression but not avoiding a crash . We wont get inflation as oil as dropped and people cant really spend money, so the velocity of money as/will not get going until they have controlled the virus and then i anticipate the government will give every one maybe £1000 or £2000 but they will have to spend it say 2 months this will then kick off the economy and inflation, or they have a reset then do this ie have a Bretton woods

[qs99] 23/3/2020 17:55

up over 5% now....heading towards that $1,600 IMO

[imnotspartacus] 23/3/2020 17:36

Gold & silver breaking out!

[qs99] 23/3/2020 16:15

haha, finally some blue at SHG!

Gold up 6% and only just the start hopefully.....$1,600 would be a nice "scalp" to begin with, let's see if POG can get through that in the next few days

[jc2706] 23/3/2020 15:55

You need to turn your chart up the other way Juju44.

[juju44] 23/3/2020 15:16

Yep , Shanta responding - just that its in the wrong direction