impact of rate hike

[maciver]

how serious will the effect of the interest rate hike be on the plat , gold etc shares ?

[Preston]

This is actually an extremely good question. I will try my best to provide some insight. Rising interest rate will eventually lead to a stronger rand...In rand term additional revenue will be lost, this will in turn affect share price in the long run ...hopefully not now. I am also not aware whether Anglo Plat presents its financial statement in dollars or rand term .

[DCTrader]

On the flip side... People are taking cash out of banks/realiers etc due to inflation and the expected rate hike. So where do they put their money? Most probably in safe havens like resources... more demand for these stocks and price goes up, irrespective of metal prices. But that's just my 2c worth...

[Preston]

The best way to address your concerns.. Have a look at the price chart for Anggold and Angloplats.(download it) On the Reservse bank site (www.reservebank.org.za) or SARS site , there usually have a list of all the date interest rate was increased or changed... Trace those date of interest rate changes to the Price Chart....to determine the effect of intereest rate changes on these share As for me and my wallet.. i am in for the Long run....

[maciver]

Thank you Preston and DCTrader . I did buy Implats this morning , had a good run since then !

[#6]

Interest rate seem set to increase in Euroland, Bank of England and now probably in SA. The US treasury curve has short term rates lower than long term rates, previously an inverted curve. Is th eworld pricing in inflation moving upwards in the future.? Generally if the world belieive inflation in moving upward, gold will be the safe haven to move into.Holding gold stock one picks up the inflationary costs of labour and admin in a GFI or HAR. I would suggest holding a gold ETF. OMO