MACQUARIE RATES SLR AS OUTPERFORM, page-244

I think that in addition to end of year tax loss selling there is also some end of quarter portfolio rebalancing happening that is affecting some goldies more than others.

In addition the US POG could soften further in the short to medium term - Chinese non-government gold demand has been weak due to a much weaker economy since COVID struck, and Indian demand tends to be seasonal and very price sensitive (they will buy it on a price sale but the POG is not cheap at present). The gold price has been held up by government purchases, but some holders of gold have recently been selling their gold holding to pay for imports (eg Turkey). Another negative for gold has been rising real interest rates as inflation falls while CBs raise their rates.

I bought some SLR shares this afternoon as a hopium trade - I do not like their reserve base and the fact that the Canadian operations are struggling. On the plus side is that they have a lot of cash to see them through hard times and perhaps pick up good assets. It would not surprise me to see the share price drop below 90 cents.

GLA

loki