• Tag Archives South Africa
  • BRICS the Rise & Fall

    The first thing to go when a country is moving into economic crisis is the arts. This is intermixed with various social programs. As the economic crisis broadens, demand for taxing the rich rise. However, all this accomplishes is to cause capital to hide and hoard even more refusing to invest or spend and this then adds to the economic decline.
    The BRICS were touted as the new rage in the world economy. The BRICS were even holding their own summits and they were supposed to surpass the G7, were all the forecasts. Brazil, Russia, India, China and South Africa became known as the ‘BRIC’ nations back in 2001 which was a term coined by of course Goldman Sachs.

    This post was published at Armstrong Economics on Dec 27, 2017.


  • ECB Trapped: Steinhoff Liquidity Collapses As Lenders Pull Credit Lines

    When yesterday we discussed the latest troubles facing embattled retailer Steinhoff, whose bonds are owned by none other than the ECB, we said that while the company’s bonds mature in 2025, its bankruptcy is at most months away. In retrospect, and in light of the latest news, that may have been optimistic, because it now appears that a bankruptcy may be imminent and is at most just weeks away. According to Bloomberg, Steinhoff – which is facing an accounting scandal that led to the recent departure of its CEO and destroyed most of the company’s value – said lenders are starting to cut off support.
    The reason why Steinhoff is suddenly facing not only a solvency but liquidity crisis is that the company which owns Conforama in France, Mattress Firm in the U. S. and Poundland in the U. K. isn’t yet able to assess the magnitude of financial irregularities disclosed two weeks ago, it said in a presentation to lenders in London on Tuesday (presentation below). The South African company also said it didn’t know when it would be able to publish audited results for 2017 and 2016, nor whether additional years will need to be restated.
    Furthermore, Steinhoff also revealed that it didn’t have ‘detailed visibility’ of the cash flows of individual operating companies. The units rely on the company for working capital and ‘the forecast position for each operating company is evolving daily,’ it said. PricewaterhouseCoopers has been hired to investigate the accounts, while AlixPartners LLP is working on an analysis of the cash flow.
    In short, the company is flying blind with no budgeting and no corporate overnight.

    This post was published at Zero Hedge on Dec 19, 2017.


  • Rand Volatility Surging Ahead Of ANC Leadership Conference

    Volatility in the Rand is surging in the run up to a conference when the ruling ANC could replace Jacob Zuma as its leader.
    According to Bloomberg, the South African rand’s price swings are set to increase over the next two months as the ruling African National Congress prepares to replace President Jacob Zuma as party leader during a Dec. 16-20 conference.
    Two-month implied volatility for the currency against the dollar surged to the highest in more than 11 months on Thursday, a day after Finance Minister Malusi Gigaba rattled markets with a bleak budget speech. At 20 percent, it’s by far the highest among major emerging currencies, with Turkey’s lira next at 13 percent.

    This post was published at Zero Hedge on Oct 27, 2017.


  • Thunder Down Under: Some Australian Junior Gold Miners Take Off

    Gold mining stocks have been treading water for what seems like forever. But in a remote part of Australia, a potentially big find by a tiny exploration company is generating some welcome excitement.
    The story in a nutshell: Back in the 1990s, Newmont Mining geologist Quinton Hennigh came up with a novel theory about the origin of South Africa’s immense Witwatersrand Basin gold deposit. He left Newmont and spent the next couple of decades searching for similar geologic structures that he hoped would contain similar amounts of metal.
    He eventually found one in a remote part of western Australia, and formed Novo Resourcesto explore it.
    A few more quiet years ensued. But in mid-2017 the floodgates opened as reports of serious deposits – including large numbers of gold nuggets right near the surface, documented on YouTube – caught the imagination of some heavy hitters in the gold world, turning Novo’s stock into a ten-bagger and taking several other explorers with nearby claims along for the ride.

    This post was published at DollarCollapse on OCTOBER 2, 2017.


  • SWOT Analysis: Opportunities Across the Gold Mining Space

    Strengths
    Typical of FOMC meeting weeks, we tend to see the precious metals take a hit. The best performing precious metal for the week was palladium, off 0.43 percent on little market moving news. Ford announced that it will add more downtime to five North American automobile plants due to a decrease in demand as inventories rise on dealer lots. The gold price could soon recover, says Jason Schenker, president and founder of Prestige Economics, the reason being that the Federal Reserve might raise rates less rapidly because of low U. S. inflation. ‘The fact that the Fed members lowered their forecast for their own future Fed funds rate indicates that the Fed may again kind of undershoot what they’re predicting they’re going to do for rates,’ Schenker told Bloomberg. This could end up being neutral to bearish for the dollar, which would help support the gold price. Gold has begun to climb back toward $1,300 an ounce on safe-haven demand now that tensions between Washington and Pyongyang are steeply escalating. Following new U. S. sanctions against North Korea, the rogue Asian country’s leader Kim Jong-un threatened to detonate a hydrogen bomb in the middle of the Pacific Ocean. With the back-and-forth rhetoric intensifying, investors’ interest in safe havens, gold included, has been renewed. Weaknesses
    The worst performing precious metal for the week was platinum, off 3.77 percent. Platinum prices has been out of favor for the last couple of years, recently prompting Impala Platinum, the world’s second largest producer, to propose some job cuts in South Africa that could lead to supply disruptions if labor is not on the same page. Earlier this week, gold dropped below $1,300 an ounce as risks receded of another hurricane striking the mainland U. S. and as major stock market averages continued to hit record highs on a near-daily basis. In addition, a diplomatic resolution to the nuclear standoff with North Korea appeared likely, with Secretary of State Rex Tillerson saying the U. S. is seeking a peaceful conclusion.

    This post was published at GoldSeek on Monday, 25 September 2017.


  • South African Krugerrand Celebrates Golden Anniversary, Demand Surges

    The South African gold Krugerrand turned 50 this year, and with higher demand for physical gold, analysts expect sales levels not seen since the 1980s.
    Rand Refinery marketing executive head Richard Collocott spoke to reporters at the facility last week to celebrate the Krugerrand’s golden anniversary.
    Increased demand for gold has supported sales of the gold bullion Krugerrands and this year is predicted to yield the highest sales since the 1980s, with an expected 15% to 20% increase on the 1.1-million ounces of the coins sold in 2016.’

    This post was published at Schiffgold on AUGUST 21, 2017.


  • Gold Coins Have Been South Africa’s Best Investment For 50 Years

    In the 50 years since the first Krugerrand was minted in South Africa, the gold coins have turned out to be one of the best investments in the country.
    As Bloomberg reports, the Krugerrand originally sold for 27 rand (then worth $35) back in 1967. One ounce of gold is now worth 16,840 rand ($1,273), boosted by a combination of rising global gold prices and a depreciating local currency.

    This post was published at Zero Hedge on Aug 20, 2017.


  • Is The Global Stock Rally Hitting A Wall?

    A key global equity index is testing potentially major resistance.
    Unlike in recent years when the U. S. market dominated, stocks around the globe have been on fire this year. Just yesterday, we mentioned the latest great looking breakout underway in the South African stock market. Of course, with all of these individual countries exhibiting strength this year, it stands to reason that the broader indices would also be performing well. One such index is The Global Dow Index (GDOW).
    The Global Dow is an equally-weighted index of 150 of the largest stocks in the world and it is one of our favorite barometers of the state of the worldwide equity market. Coming into 2017, we mentioned that the GDOW was facing significant resistance in the form of a 10-year Down trendline stemming from its 2007 all-time high of 2878.

    This post was published at Zero Hedge on Aug 10, 2017.


  • Risk Off: Global Stocks Slide As “Fire And Fury” Results In “Selling And Fear”

    US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday’s sharp escalation in the war of words between the U. S. and North Korea. In a broad risk-off move U. S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks. The Swiss franc gained 1.2 percent to 1.1320 per euro its biggest daily advance since February 2015, while the yen surged as much as 0.8% against per euro, its strongest level in three weeks while gold rose.
    “Trump’s comments about North Korea have created nervousness and the fear is if the President really means what he said: “fire and fury”,” said Naeem Aslam, chief market analyst at Think Markets in London. “The typical text book trade is that investors rush for safe havens.”
    Gold was headed for it’s largest gain this month while the yen and Swiss franc were the biggest advancers among G-10 currencies after President Donald Trump ratcheted up his rhetoric against North Korea. Treasuries and most European government bonds climbed amid the shift to safer assets, while almost every sector of the Stoxx Europe 600 Index fell and emerging markets equities were poised for the biggest drop since June 15. The rand extended losses after South Africa’s president survived a no-confidence vote.

    This post was published at Zero Hedge on Aug 9, 2017.


  • Rand Tumbles After South African President Zuma Survives “No Confidence” Vote

    Update: South African president Jacob Zuma speaks after his victory fending off the no-confidence vote: “It’s difficult to defeat The ANC.”
    As we detailed earlier, national assembly speaker (and purported replacement) Baleka Mbete’s secret no-confidence vote has failed to oust South African President Zuma.
    Speaker of Parliament Baleka Mbete shocked South Africans Monday when she announced her decision to allow the vote to proceed on a secret ballot, which would allow party members to vote against their leader outside the public spotlight.
    “I understand and accept that a motion of no confidence in the president is a very important matter, a potent tool toward holding the president to account,” she said at a press briefing Monday in Cape Town. She did not take questions from reporters.

    This post was published at Zero Hedge on Aug 8, 2017.


  • AUGUST 7/GOLD UP 30 CENTS/SILVER DOWN 3 CENTS/U.N. SANCTIONS NORTH KOREA WITH A 15-0 VOTE (VOTE IN THE AFFIRMATIVE BY CHINA AND RUSSIA)/NORTH KOREA OFFERS AN ANGRY RESPONSE TO THE ADDITIONAL SANC…

    GOLD: $1259.00 UP $0.30
    Silver: $16.27 DOWN 3 cent(s)
    Closing access prices:
    Gold $1258.00
    silver: $16.29
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1263.73 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1258.81
    PREMIUM FIRST FIX: $4.92
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1264.29
    NY GOLD PRICE AT THE EXACT SAME TIME: $1258.15
    Premium of Shanghai 2nd fix/NY:$6.14
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1258.10
    NY PRICING AT THE EXACT SAME TIME: $1258.00
    LONDON SECOND GOLD FIX 10 AM: $1257.55
    NY PRICING AT THE EXACT SAME TIME. $1258.00
    For comex gold:
    AUGUST/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 73 NOTICE(S) FOR 730000 OZ.
    TOTAL NOTICES SO FAR: 3319 FOR 331900 OZ (10.323 TONNES)
    For silver:
    AUGUST
    1 NOTICES FILED TODAY FOR
    5,000 OZ/
    Total number of notices filed so far this month: 544 for 2,720,000 oz

    This post was published at Harvey Organ Blog on August 7, 2017.


  • A Weaker US Economy Could Result in Strong Gold Rally

    One possible effect of the ‘America First’ approach the Trump Administration vowed to take was a weaker US dollar. Shortly after we wrote about this earlier this year, the dollar index began a steady march lower, retreating 7% in just five months, from 102 in March to its current level of 95.
    Not surprisingly, gold has risen almost 10% in US dollar terms during this time.
    ***
    As recently as six months ago, many investors expected the dollar to continue its rally of the past few years based on stronger economic growth, via Trump’s agenda items, and tighter monetary policy by the Federal Reserve.
    However, despite high expectations, so far Trump’s efforts to overhaul healthcare and reform taxes have fallen flat and have been short on substance. In addition, the continued investigation of Trump’s Russia ties has caused more investors to grow skeptical about the chances for meaningful reform, beyond unilateral executive action.
    In a surprise move, the International Monetary Fund (IMF) just slashed its GDP growth forecast for the United States from 2.3% to 2.1%. It also cut its 2018 forecast from 2.5% to 2.1%. This type of revision hasn’t been seen anywhere in the world except for Brazil and South Africa, two deeply troubled economies.

    This post was published at GoldSilverWorlds on July 28, 2017.


  • Doug Noland: Yellen on Inflation

    This is a syndicated repost courtesy of Credit Bubble Bulletin . To view original, click here. Reposted with permission.
    Global Markets rallied sharply this week. The DJIA rose 223 points to a record 21,638. The S&P500 gained 1.4% to a new all-time high. The Nasdaq100 (NDX) surged 3.2%, increasing 2017 gains to 20.0%. The Morgan Stanley High Tech Index rose 3.4% (up 24.6% y-t-d), and the Semiconductors surged 4.7% (up 21.8%).
    Emerging markets were notably strong. Equities rallied 5.0% in Brazil, 5.5% in Hong Kong, 5.1% in Turkey, 2.5% in Russia, 2.2% in Mexico and 2.1% in India. The Brazilian real gained 3.2%, the Mexican peso 3.0%, the South African rand 2.7% and the Turkish lira 2.3%. Global bond markets also rallied. Yields (local currency) dropped 27 bps in Brazil, 18 bps in South Africa, 16 bps in Turkey and 22 bps in Argentina. Here at home, five-year Treasury yields dropped eight bps (to 1.87%). U. S. corporate Credit also enjoyed solid gains. Across global markets, it appeared that short positions were under pressure.
    Markets reacted with elation to Janet Yellen’s Washington testimony – widely perceived as dovish. In particular, the chair’s timely comments on inflation were cheered throughout global securities markets. A headline from the Financial Times: ‘Fed Chair Yellen’s Inflation Concern Buoys Markets.’ And Friday afternoon from Bloomberg: ‘S&P 500 Hits Record as Inflation View Turns Iffy’.

    This post was published at Wall Street Examiner by Doug Noland ‘ July 15, 2017.


  • JULY 5/NORTH KOREA LAUNCHES AN ICBM AND WITH THAT WAR DRUMS BEAT LOUDER/SAUDI ARABIA REJECTS THE QATARI NEW PROPOSAL AND THE BLOCKADE CONTINUES IN THE GULF/SOUTH AFRICA TO NATIONALIZE ITS CENTRAL…

    GOLD: $1220.40 UP $2.40
    Silver: $15.92 DOWN 18 cent(s)
    Closing access prices:
    Gold $1227.00
    silver: $16.10
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1236.89 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1228.10
    PREMIUM FIRST FIX: $8.79
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1244.88
    NY GOLD PRICE AT THE EXACT SAME TIME: $1235.85
    Premium of Shanghai 2nd fix/NY:$9.03
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1235.20
    NY PRICING AT THE EXACT SAME TIME: $1235.80
    LONDON SECOND GOLD FIX 10 AM: $1220.30
    NY PRICING AT THE EXACT SAME TIME. $1220.30
    For comex gold:
    JULY/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 1 NOTICE(S) FOR 100 OZ.
    TOTAL NOTICES SO FAR: 39 FOR 3900 OZ (.1213 TONNES)
    For silver:
    JULY
    397 NOTICES FILED TODAY FOR
    1,985,000 OZ/
    Total number of notices filed so far this month: 1601 for 8,005,000 oz

    This post was published at Harvey Organ Blog on July 5, 2017.


  • Rand Tumbles On Report South Africa Seeks To Nationalize Central Bank

    The South African rand has tumbled following a report confirming recent speculation that South Africa’s ruling African National Congress will propose that the country’s central bank, the Reserve Bank be nationalized and wholly owned by the state, according to three people familiar with the discussions quoted by Bloomberg.
    S. AFRICA’S ANC SAID TO PROPOSE CENTRAL BANK BE STATE-OWNED S. AFRICA’S CENTRAL BANK CURRENTLY HAS PRIVATE SHAREHOLDERS S. AFRICA CENTRAL BANK’S SHAREHOLDERS HAVE NO SAY ON POLICY Bloomberg adds that the proposal which will surely have negative consequences on the country’s financial stability was approved in plenary session of the party’s policy conference taking place in Johannesburg. However, the decision still to be ratified at the ANC electoral conference in December, so nothing is imminent. By way of background, Bloomberg reminds us that the central bank’s currently has about 600 private shareholders who have no say over the setting of monetary policy.

    This post was published at Zero Hedge on Jul 5, 2017.


  • Gold And Silver – Why No Rally? Lies, Lies, And More Lies.

    One thing certain of all politicians, no matter where in the world, they all lie. The US federal government, that captive political body beholding to Wall Street interests, also a subsidiary of the international bankers that controls the West and all fiat-issued currency, is one of the worst when it comes to lies and deceit, primarily because Europe can only play a poor second fiddle to federal US dictates. South America can offer no resistance, nor can South Africa.
    China is beginning to flex its overblown might, and Russia, while in opposition, remains under attack by the West, led by the Neocons [Nazi-types] from the US Deep State trouble makers. The only thing the federal US government does is start wars, and if there is a war going on anywhere around the globe, the US is either directly or indirectly responsible. Wars feed the [fading but still formidable] military might as a means of keeping the fiat Ponzi scheme, aka the ‘dollar,’ alive as the [diminishing] world reserve fiat currency.
    Every US administration, at least since the 16th president, Lincoln, in 1861, has been utterly deceitful to the American, indeed world-wide, public. Almost everything that comes from every administration is based on lies, lies, and more lies. Bush, the first, Clinton, Bush the second, Obama, and now Trump, have been ardent liars about everything.
    The Bushes and Clinton were willing sycophants serving the interests of the elites at the expense of all Americans. ‘Yes, we can’-Obama was full of naive hope that quickly turned into yet another executioner for the elites, not fulfilling a single campaign promise and basing his entire presidency on selling the American interests to Wall Street and the international bankers. Obama was a sickening excuse for a president and hid his lying character from the American public.

    This post was published at Edge Trader Plus on Saturday 1 July 2017.


  • This Region Is China’s Next Target For Resource Deals

    South Africa’s chamber of mines officially filed suit this week to block the country’s challenging new mining charter. But elsewhere in the world, some of the biggest investors in natural resources are ramping up their financial commitments – to a new target region for mining and energy deals.
    Latin America.
    Specifically, Brazil. Where government officials announced that a major new infrastructure fund backed by China will begin accepting investment proposals this week.
    The $20 billion fund was unveiled late last year. With Chinese backers committing $15 billion of the total funds, and the balance provided by Brazilian and international banks.

    This post was published at Zero Hedge on Jun 29, 2017.


  • Gold mine output turning down this year. Is Peak Gold with us? — Lawrie Williams

    The latest weekly Precious Metals newsletter from London-based specialist consultancy Metals Focus at last sees gold output growth grinding to a halt during the current year. Many commentators have been predicting this to happen almost every year since the metal price fell back sharply in 2011, largely ignoring new mega-projects already under construction and too far advanced to be dropped (like Pueblo Viejo in the Dominican Republic) and the industry’s propensity to switch to mining higher grades, where this was possible, to counter declining revenues. As a result of these trends annual global gold output has actually been rising over the past few years, albeit relatively slowly, but Metals Focus now sees this increasing output trend coming to a halt during the current year.
    And along with the halt in increasing gold output, the consultancy sees All in Sustaining Costs (AISC) beginning to increase again. The newsletter notes global AISC rose in Q1 2017, both quarter on quarter(+4%) and year on year (+8%), driven by a recovery in some key producer currencies (most notably the South African rand), the general pickup in the commodities sector (which is fuelling an increase in labour expenses and the costs of mine-site consumables) and an increase in sustaining capital expenditure (as the industry looks to adequately reinvest following a period of austerity).
    Indeed, Metals Focus comments that the annual supply of new gold (as opposed to recycled material) has grown by around 800 tonnes since 2008, an increase of around 25-30%. It puts this growth trend down to being driven by production increases in countries like China, Russia and Mexico coupled with a number of new mine startups across Africa (outside of South Africa) and a recovery in more mature mining jurisdictions, such as Canada and Australia. But now it sees this increasing production pattern coming to an end. Could Peak Gold, so beloved of gold bulls actually be with us at last?

    This post was published at Sharps Pixley