Precious Metals in general looking good. Both gold and silver moving through the 50 day moving average.
Unrest in Sth Afica...7000 on strike over pay...$15,000 a year to work in 40+ d C and whatever humidity 2000m underground in tunnels 1 meter high? ...here think about $250k pa and you would be battling to get the Oz boys underground under the same conditions in S Africa...one can guess this is not going to end well...
>>>>>>The two opposing sides in the gold sector remain poles apart despite weeks of talks. Employers's latest offer of 5.5% increase in basic wages has been dismissed by the unions.
The National Union of Mineworkers (NUM), which represents 64% of the country's 140,000 gold miners, is seeking a basic wage for entry-level underground workers of 8,000 rand (£500) a month, which would mean a 60% increase.
Its more hardline rival the Association of Mineworkers and Construction Union (AMCU), which represents about 17% of the gold labour force, has submitted demands as high as 150%.
"The prospects for a strike remain big," an NUM spokesman, Lesiba Seshoka, told Reuters. More talks were due on Wednesday. If those fail, workers are expected to down tools on Monday down tools on>>>
Gold flowing through Pakistan,Nepal, Bagladesh porous borders into India. I guess they could always put the tax on gold up higher?
Some interesting notes on the present gold mining follies of the large companies (it doe snot go into their absurd M and A impariment rounds)
>>>One might have been forgiven from asking in the past why reported earnings have invariably worked out as being way below the optimistic estimates suggested by cash cost reporting, and this quarter the figures are really making the point that at current gold prices even the best of the world’s gold miners are either making losses, or are only at best marginally profitable. >>>
read the rest at... http://www.miningaustralia.com.au/news/cash-cost-reporting-bites-gold-miners
China now buying 1200 tonnes of gold annually *( up a bit from 200 tonnes), as well as being the worlds top gold producer for the 6th year in a row...
>>>>Mine production: 403 tonnes
Official gold holdings: 1,054.1 tonnes
China has now been the leading gold producer in the world for six years in a row. Its output grew approximately 11.7 percent in 2012, reaching a landmark of 100 times the nation’s 1949 production level, according to Forbes. It has also doubled its output since 2003.
Zijin Mining Group (SSE:601899), which reportedly produced 2,770,428 ounces of gold in 2011, is China’s biggest producer. The country’s official gold holdings, according to the World Gold Council, are 1,054.1 tonnes, or roughly 1.7 percent of total foreign reserves.>>>>
As Sprott mentioned, with gold rallying, then gold equities are going to probably bounce higher again, as most have been trashed.
Lets hope the AMX Mngt and board can get the results, and get the message out in a convincing manner. Might see the AMX share price go up a bit?
Last little thing? Its always good to watch what happens in the USA, but could it be that they might be heading in the right direction to avert another self engineered catastrophe?
A variation in the theme of reconstructing the major banks in the USA...
>>> Moody's Investors Service put the debt ratings of the six largest U.S. banks on review, reflecting uncertainty regarding U.S. policies for supporting distressed banks.
Moody's placed on review for downgrade the senior debt ratings of Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM), Morgan Stanley (MS) and Wells Fargo & Co. (WFC). The senior debt ratings of Bank of America Corp. (BAC) and Citigroup Inc. (C) were placed on review, with direction uncertain, as the ratings agency takes into account improvements in the standalone credit strength of their main subsidiaries.
Moody's said in March it would re-assess its assumptions for the support banks can expect to receive from the U.S. government.
Its review will consider the possibility of a lower level of systemic support in the event that a bank becomes financially distressed, as well as the potential for a more orderly workout and required minimum level of company debt that could limit losses.
Regulators are working with large U.S. banks on developing liquidation plans in the event of another crisis as the Federal Reserve pressures large U.S. banks to go beyond minimal requirements when setting capital plans.
"In the past year, we have seen progress towards establishing a framework to credibly resolve these large systemically-important banks, as called for under the Dodd-Frank Act," said Robert Young, Moody's managing director. He also noted increased cooperation among international banking regulators to manage global banking groups.>>>>
Begs the question, though, would you really trust a rating agency. Great entertainment!
AMX Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
(20min delay)