Gold shares

[Wizard]

Not moving at all despite higher gold prices! Just waiting for gold to correct and they will sell off. Next rally will be early December.

[Brazen]

Wiz, three simple rules for gold shares. Gold goes down, gold shares go down. Gold stays flat, gold shares go down. Gold goes up, gold shares go down.

[SimonPB]

brazen, 3 rules is way complicated. rather just one simple rule for gold share - rather buy plat shares.

[DST]

Whats that old chestnut - "Love makes the world go down"?

[Mol]

The exeption is wgr

[SimonPB]

and isn't the real irony here that they have no gold?

[Preston]

Simon , with a direct investment of 5.5 Billion dollar, this is going to strengthen the rand.. Bad for plats dude

[SimonPB]

preston, they keeping it off shore. Anyways the issue is not the Rand/plat price - rather that plat miners are actually able to make money whereas gold miners haven't a clue.

[Brazen]

Have to be fair tho Simon. With gold at a 28 year high some of the miners MIGHT make a slightly smaller loss than usual. MIGHT.

[Mol]

But they have brains, Adam Flemming

[SimonPB]

maybe, but aren't they in the potch gap - there is loads of gold there, but it is 8km's below ground. All the brains in the world ain't going to get it to market.

[Mol]

As I see it he'l sell all his work and enpowerment deals to Goldfields or Harmony or even DRD as soon as the gold price hits $2000

[#13]

You must look at the gold price in relationship to the strength of the rand. If gold is trading at 765U$D and the rand is at R6.60 your gold price is R5050.00, If gold is trading at 700U$D and the rand is atR7.20 your gold price is R5050.00. For local gold shares the 2 are linked so don't get over confident in gold just because the gold price is up, OMO.

[Wizard]

The sad thing is that not even the Gold Share index and Rand Gold price exhibit any great relation. Sometime they will trade at a ration of 1:1 and like now its more like 1:2

[Wizard]

The difference comes due to the rising costs and they seem to outpace the rise in the Rand Gold price.

[john_1]

Visulize for a second.. In SA Gold mining. The gold is been mined at deapths greater than that of the drakensburg mountains, the rock has to be lifted ton for ton from 3000m and the reward is $750 an ounce. In paltinum mining the deapth is +/-600m 5 times as shallow. and the reward is $14000 an ounce. All other things been equal as the labour cost are the same for both industries and it cost the same for a cup of coffe in both board rooms... Do you invest in Platinum or Gold Mines.. If you say Gold you deserve to lose money!

[Wizard]

The cash flows have been discounted from those companies. The question is whether the rise in costs is outpacing the rise in costs for platinum. Anything less and for Gold and I'm jumping both feet in even they mine platinum from 5m underground.

[Ditzy]

Oh Brazen, you make me laugh !! Another rule, if you are intent on having gold shares, get your pet chimp to chose them for you. He/she WILL outperform you ( works with the dumbest member of the harem too).

[Russ]

Thanks for advice,Ditzy.I will get the dumbest chimp in my harem to choose my gold shares.

[cheryl_1]

wizard... exactly why I don't invest in gold shares!! rest of the world thinks that's all sa does... export gold!! as soon as the gold price rises.. the rand strengthens!! useless exercise ... they cancel each other out!!