Good afternoon
Central banks and governments around the world are pushing money-supply like never before….
needless to comment on wider markets - no idea, what they might do 20 min from now!
Interesting is, that the GDXJ is trading at the same level as it traded, when gold was 1100 US$, and nobody made any money - except for a few Australians thank´s to the currency, maybe! Having said this - which is broadly still tue - the GDXJ is now ( after 1 hour of trading ) up a fraction, and 10% above the opening!
Endeavour git hammered down by more than 20%, as they reported their first case of corona - even though it appears, that they have contained it. From now, every employee returning to the mine will be in quarantine for 2 weeks….not sure, how tehy want to do this, with rosters etc…but anyway, that´s what they said.
Some people were questioning the worth of gold as a store of value - well, I can only say, that gold is down, but at the current 1477 US$, “only” by 13% since the absolute high, while equities are down by 30% or so, in some cases like the DAX, down by about 40%. So I think, that gold is fulfilling it´s promises, considered these crazy markets. Physical demand from around the world has been reported as overwhelming - but the synthetic market is obviously larger than the physical. All I know is, that gold remains the only currency, which has lasted for 6-7.000 years at least, and is not backed by a Central Bank or a government! The unprecetended amount of money printing we are currently witnessing, got to be good for gold!
This crazy US market drives me mad - up a stupid 10% on Friday, down 10% today - machine trading all over it - and now down 6%….
Turnover on the ASX was 20 bill A$ on Friday - the previous high had been 15 bill A$ on the 28th of Feb this year. The ASX had problems to inact settlement of all transactions on Friday, and ahs asked brokers, to somehow and voluntary reduce oders by 25% - if not possible, it would have to inact official action. This has worked today. The market is awash with high frequency and automated trading - I think this should be forbidden, certainly in current circumstances. IF governments would impose a 0,1% transaction tax, it would not hurt anybody - except for those machines - and the problem would be gone once and forever!
Cardinal - received a non-binding takeover from Russian company, Nord Gold, which has already bought 19% of the company - mainly from Goldfields. There are some brave people left in this market!
Lucapa - have increased diamond resources in Angola by 25%.
Apollo Consolidated - annpunced many lower grade intersections ( around 1-2 g/t ), but also 4.7m at 19g from their Lady Rebecca Project in WA, which already contains 775.000 OZ ( and 1 mill oz incl it´s satellites )
There will be a day, when investors are interested in micro-news again!
Enjoy the TV-program, or a game with the kids tonight!
As I am finishing this, the GDXJ is up by 14% or so, and gold is trading at 1515 US$, after hitting 1451 earlier today….
WS