Okay, I’ve been investing for quite a few years now, but I’m the first to admit that I don’t understand much of what goes on in global financial markets. So, can you explain why precious metals are being sold off so heavily right when you’d think people would be buying and positioning themselves for this supposed commodities super cycle and fiat currency devaluations etc?
We’re often asked about silver as an investable alternative to gold due to its industrial uses but these haven’t been the main drivers of price in recent years:
Good Morning, They say we should ignore the noise, but the noise about precious metals (gold, silver, platinum etc) is very loud. Warnings about pending price crashes and, conversely, outrageous price targets that are hard to believe. So, I will ignore the noise and listen to you. I already know that you’re bullish, but exactly where and why are these metals stocks going in your opinion? Thank you, as always.
If you were to build a portfolio of 5 ASX resources stocks (across base metals, precious metals and energy) what would be your highest conviction picks right now and why. Can be large cap and small caps.
Hi Guys,
I’d love to hear your thoughts on why URA and SLV seem to be struggling so much recently, and do you still have a bullish outlook medium term?
Thanks
S32 has transformed itself in recent weeks after selling off its aluminium value chain, including Worsley Alumina, Hillside Aluminium and its Brazilian bauxite and alumina assets, to Alcoa for an implied US$5.6bn. The package comprises US$3.1bn in cash, around US$1bn in Alcoa shares, assumed liabilities and contingent payments linked to future aluminium prices. The assets accounted for around 60% of group earnings, making this a transformational portfolio reshaping.
ASX Silver stocks are currently in a lull. I hold Andean Silver (ASX: ASL), Unico Silver (ASX: USL) and Sun Silver (ASX: SS1), all of which are up, but off their highs so far this year. Would you buy at current prices, do you have any preferred silver stocks and how do you see the valuations going forward? Thanks.
The silver price has been subdued since mid-March after the speculative bubble burst in late January. Ultimately we believe it can rally back towards its pre-war levels, around 20% higher, but it’s likely to need a softer $US and a return to an easing bias by the Fed, both of which need a resolution to the US-Iran conflict.
The market followed the usual script overnight with war optimism sending stocks, bonds, precious metals and copper all higher. Silver surged more than 5% through last nights session, trading back to mid-March levels, noticeably not as strong as stocks because the market was way too long into February as the speculative bubble burst causing the precious metal to halve in price.
Precious metals came off their highs overnight as Iran rebuffed Washingtons initial 15-point peace plan, no great surprise there in our opinion. Gold and silver continue to dance to elevated inflation fears created by oil prices remaining elevated as the Strait of Hormuz remains largely closed.
