RESOURCE SHARES REACH EQUILIBRIUM

With the weak resource prices continuing and demand reaching new lows last year,shorting main producing shares last year ,shares made new lows at large discounts below their net asset values. With real investor interest and short covering this year there has been a remarkable recovery in the first part of 2016.
How ever further advances now will depend on demand for products which will drive prices higher. At the moment there no sign of a genuine recovery which will obviously still manifest itself in the following years. Care is now needed when buying stocks as their costs of production are also increasing as the Rand weakens.

MINING SHARES ARE AT LAST RECOVERING

IN THE OLD DAYS THESE WERE CALLED  MNING HOUSES AND HOLDING COMPANIES WHICH WAS A GREAT DEAL MORE DISCRIPTIVE THAN TODAY AS THEY ARE NOW CALLED GENERAL MINING AND ARE IN A SECTOR WTH A WHOLE LOT OF RUBBISH SHARES AS WELL!  
WE HAVE CHOSEN THE BEST IN OUR OPINION,SEE THE SIDE-BAR

A SLOW RECOVERY CONTINUES.

THE RECOVERY IN THE GOLD AND PLATINUM PRICES IS DUE TO THE ACTUAL PRICE OF EACH METAL,NOT JUST MARKETS BEING OVERSOLD !
THE PLATINUM GROUP METALS HAVE FOR SOME TIME NOT BEEN IN SURPLUS AND AS FAR AS THE GOLD PRICE GOES THIS IS SEEN AS A ALRTERNATE ASSET IN THESETROUNLING TIMES.




. See the latest platinum and gold updates in the sidebar.
ALSO READ THE MAIN POST ON .....sashares2010.blogspot.com

A WINDOW OF OPORTUNITY AT LAST !

As the  Rand( South African currency) decreases against the American Dollar the price we receive for our commodities increases. Eventually inflation will nullify the gap and this will not be an advantage. How ever this can take a couple of years as the recession we are in have caused the mining companies to act very prudently.
 VEIW THE GOLD UPDATE IN THE SIDE-BAR 18/1/2016

POSSIBLE REBOUND IN RESOURCE STOCKS

It would seem as if metals are bouncing along the bottom of their ranges. At this point it is likely if prices do not improve, mines will simply stop production. In countries other than China small shortages are beginning to develop.
 OVER THE LAST MONTH
AMS         UP 24%
AQP         UP 51%
AGL DOWN   7%
STXRES   UP  3%
SEE THE PAGES FOR 2015 UPDATES

RESOURCE SHARES ARE OVERSOLD !

See the platinum update for August 2015

The first glimmerings in resource shares are there. They were now in free-fall for a number of months.
It would be best to stick to the mining houses now ,as all have suffered from the prolonged sell off and are badly in need of reinvestment funds. 
I for one have always found that individual shares out perform index funds. How now that things have deteriorated so far that a very good index fund having the top ten resource shares would save one from making the wrong decision.
Such a fund is the Satrix resource fund, about sixty percent of the fund is in Billiton and Anglo and the other half  in the other eight leading resource shares . The code is STXRES.
This ETF (Exchange Traded Fund) is especially  suitable for us local South Africans, as the Rand has weakened to such an extent   that the dividends in Rand terms will be much stronger. Added to this both BIL and AGL have most of their portfolio outside the country.
Most of the shares have issued statements confirming that they expect better results as well.

CHANGES

The resource prices are still staying exceptionally low .

Google ,Active Stock and Share trading ideas to find some of the answers, from time to time.
Our local metal prices are helped by the decline in our Rand value against the US Dollar.
aster than the large shares
Small platinum stocks are increasing faster than the larger

 companies, but are extremely volatile and are highly speculative. JBL is a better company than BAU as it actually producers platinum and has its own CON ROAST method of mining.
Always keep stop-losses in place

Naomi's Small Caps have been updated 17/6/2015

RECOVERY CONTINUES SLOWLY

AS WE STATED LAST MONTH THE RECOVERY OF THE SHARE HOLDING COMPANIES CONTINUES ALTHO COMING OFF A LOW BASE
SEE  UPDATES SEE SIDE-BAR
HOLDING COMPANIES  5/5/2015

The Changing Scene

For the most part there is a churning in share prices of commodities at the moment. Prices are unlikely to retreat to any great extent, as costs  are in most  cases at break even or higher than the cost of production. No new mines nor existing mines are putting any money into expansion. Demand is starting to take of again.

UPDATES IN THE SIDE-BAR
Platinum 22/4/2015

Platinum's Price Moves

 25/3/2015 Billiton(BIL) would normally fall in price  now being ex-div, but is now unlikely to as the demerger which will be voted on  the 16/May is likely to send the price up as they will sell off their parts that give the smallest monetary returns ,namely about 6%. We are holding derivatives on this share at least up to that date as we feel in our opinion only the share will gain in price!


1/3/2015 Every year for the last three years there has been a deficit in the production of newly mined platinum. Now every one is wondering why the price of the metal  is not increasing. Added to that state was the five month strike of the major producers . In  the past the price would have shot up to record heights. Now the platinum price is lower than the gold price and it must be remembered platinum has so many more uses than gold.
 First of all ten years there was no recovery of used platinum scrap, a state that exists today ,as old catalytic converters are turned into new usable platinum so the need of new minable platinum is then cut by a third. Added to this was the recession and the struggle in Europe to climb out into better times. Therefore the demand is not there at the moment, how ever with new uses such as fuel cells coming to the fore and less productive mines now running at a loss and major producers closing loss making shafts the scene should change in the next eighteen months. It should also be remembered to bring a mothballed shaft or a new one back to a workable position usually takes at least five years. So the chances of a rising price declining soon again would be minimal.
                                     UPDATES IN SIDE-BAR
                                     Platinum 2/3/2015
                                     Mining holdings  18/3 /2015
                                     Gold mining 25/3/2015