Commodities

The French are a canny lot...

While we have been arguing with Greenpeace and fudging our energy strategy Les Gaulois have been quietly continuing to generate nuclear power and remain relatively unconcerned by the upcoming energy crunch indeed they have positively turned it to their advantage.

There is a shortage of nuclear engineers in the world. That’s what happens when an industry shrinks no-one trains in the field. ... Read More

Price points are key to getting business whether, over the counter or off the stall. Funny that, it’s the same all round the world! So, gold seems stuck for now below the $999 price-point. Silver, though has zoomed through $19.99 — so, is it ‘$29.99 here we come?’ It did hit $48 in the ‘80s.

Silver is taking Indian investment business by storm. Mumbai says its customers are selling at current gold levels. Since Indians are THE gold buyers that’s important. Of course, it should be remembered that Indian customers hate it when prices gyrate. And have they ever been doing that recently! ... Read More

The Pilanesberg....now there is a name that brings back memories of weekends away! Home to a well-stocked game reserve, this volcanic landscape in South Africa’s North West Province is an easy escape from the hustle and bustle Jo’burg. But that is not all. It is also the site of the "Pilanesberg Project", the most advanced venture of Toronto and AIM-listed platinum explorer, Platmin Limited.

The Pilanesberg Project has a total surface area of 14,511 hectares. It is estimated to contain approximately 90% of the global platinum resources in South Africa. Located in the Western limb of the so-called Bushveld complex, it is home to world’s biggest known deposits of platinum and palladium. All the major players are here — Anglo Platinum, Impala Platinum and Lonmin. Also, a little one — Platmin ... Read More

Wow, are they in trouble! Isabel and I can scarcely believe that miners could be so unwise. The South African Department of Minerals and Energy has let it be known that it is "highly dismayed." Why on earth are companies putting out statements saying that they’ve been given a clean bill of health? The government says they haven’t!

Platinum, the metal probably most affected, has been soaring partially as a result. OK, the general flight from the dollar is helping the price. But the market believes that mines will be penalised. ... Read More

"Forget the impact of safety concerns on the gold miners - look at how it could affect the price of platinum!" This note landed in my inbox this morning from a mining analyst contact in South Africa. I quickly forwarded it on to Erin.

"Certainly worth investigating! Got my favourite platinum necklace on today," came her response.

Platinum doesn’t only polish to a brilliant shine as a substitute for gold in jewellery. It has also been awarded ‘strategic metal’ status by the US military machine. Perhaps not the greatest accolade, says Erin! ... Read More

As I looked for Christmas prezzies for Isabel’s little ones, a thought occurred. Snakes and ladders - the small-co mining exploration business is a dead ringer for it.

Watching Jubilee Platinum, a little platinum explorer which has just announced some good assays and a fund-raising, brought it home. Except the game is turned on its head! The target is not escape, but the opposite. Players progress up the board trying to get caught out via a takeover by a predator at the top price.

For counters read companies, for rolled dice read drilled boreholes. En route there are snakes of worthless samples or reserves of minerals discovered, but too costly to mine. Ladders are good analysis results and cost-covering joint-ventures ... Read More

What would any self-respecting female do if offered a diamond on paper? Just a certificate!? Well, I ask you! No wonder the plans to start a diamond futures market are taking so long to get off the ground!

Since 1982, US diamond trader Martin Rapaport has been trying to set up a derivative market in diamonds. Just about any old derivative would seem to do. He is talking futures markets, indices, and Exchange Traded Funds (ETF).

But who would settle for less than the real thing? This time around it’s aimed, apparently, at the $12 billion or so that bankers lend to the diamond business. A derivative paper contract would give them a ‘hedge’. It would provide a facility for buying and selling stones at a future date, not just a rock now ... Read More

Oil has gone through the roof in recent weeks.

Hardly surprising... all you have to do is switch on the news to see how fragile things are in the Middle East.

And it's this fear that is putting the jeebees up the markets.

Production is going at full pelt and OPEC has pledged to keep it there. We may run out of oil in the long-term, but for now, supply-wise we're pretty comfy.

But, like I say, it's the fear that's putting volatility into the markets ... Read More

The Financial Times reports: “A ‘perfect storm’ of record summer temperatures, low global grain stocks and the expected growth in biofuels has seen wheat prices rise to 10-year highs and may lead to big increases in the cost of bread and pasta.

“Corn and barley prices are also likely to rise, which may in turn push up the cost of beer and breakfast cereals.

“The concern about wheat production comes at a time when global production is projected to fall short of demand this season, which would make it the fifth of the past six years where demand has exceeded supply.

“The US Department of Agriculture is expected to announce record low wheat inventories next year, which will come ahead of a sharp lift in wheat demand by the biofuel industry over the next two years as more ethanol plants using wheat as an ingredient open in Europe ... Read More

What a pity silver is so unreliable! Gold’s price is reaching heights not seen for years, but will silver follow? Who knows! Sometimes it will, sometimes it won’t and at the moment it is lagging. But one thing is sure — it is a lot cheaper than gold, and there are a lot of ways to buy it. If it was only easier to track!

No one ever seems to have the whole story on silver. Can anyone be sure how much there is around? No chance — too much is secreted away in Indian dowries! And does anyone know how much will be mined? Out of the question. It is price-insensitive and mined as a by-product of copper or other metals ... Read More