ARTICLES

Silver Ready to Go

An article by one of our customers, Koot Jordaan:

At the moment, the JSE is not a good place to be, despite all the bargains. Nobody is bargain hunting in ANC country lately. The only sectors that are booming are gold and PGM’s, due to the extraordinary performance of palladium. These are out of the starting blocks already, but silver, another precious metal, is just getting ready for the race, to eventually outperform the rest, if history is a good guide.

In the above semi-log chart a massive reverse head and shoulders formation is developing going back to 2013. I have used a 150 and 200 day exponential moving average. As can be seen, the price has already broken above these moving averages creating a buy signal. The bull is on it’s way, but still has to break through the resistance of the neckline at about US$18.50.

In previous precious metal bull markets, silver was the out-performer every time. This is an excellent technical setup. For more info about silver’s potential, use Kitco and the SRSrocco Report.

The price of silver corrected more than and is lagging behind gold. But, if history is a guideline, usually overtakes gold when the precious metal bull market gets serious.

In the bull market of 2001 to 2011, gold did 600%, while silver did 900%. Gold made the way for silver. The silver graph is almost an exact replica of the USD Gold chart. It is just a few months behind.

In the above semi-log chart of gold, you can see the reverse head and shoulders formation which took place and the break above the neckline last year. So how can you profit from this potential bull market in silver?

There are ETF’s like Newsilver, as well as a silver future available. Another possibility is CFD’s. Unfortunately we do not have any listed silver mines in South Africa – which would be the preferred way to profit from a silver bull market.  

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PDSNET ARTICLES - FEBRUARY 2020

Corona Correction Part II

Since our article “The Corona Correction” at the end of January 2020, the disease has progressed significantly, spreading to Europe and particularly to Italy where 10 cities have been quarantined and there are now 1146 confirmed cases.
As a private investor, you need to consider just how serious this pandemic is likely to become and exactly how much impact

Silver Ready to Go

An article by one of our customers, Koot Jordaan:
At the moment, the JSE is not a good place to be, despite all the bargains. Nobody is bargain hunting in ANC country lately. The only sectors that are booming are gold and PGM’s, due to the extraordinary performance of palladium. These are out of the starting blocks already, but silver, another precious metal, is just getting ready

Grit

Private investors in 2020 are faced with a domestic economy that is performing badly. South Africa is missing out on the world-wide boom in commodities because of our penchant for “shooting ourselves in the foot” economically.
In this environment it is quite natural for investors to seek solid safe investments that offer a decent return – preferably in a hard currency.
One

The Future of Inflation

Throughout the world, especially the first world, inflation is subdued. In the G7 countries, inflation remains stubbornly under 2% despite the efforts of central bankers. At the same time, in most first world economies, unemployment rates have fallen below the level that most economists consider to be “full employment”. Central banks world-wide are all focused on getting inflation back above 2%

A Story About Focus

The sale of CNA by Edcon, as part of its rationalisation and re-focus, is long overdue. There has really never been a good reason for Edcon to own CNA because there are no synergies between the two businesses. Edcon is in the clothing and fashion business – what has that got to do with what CNA does?
CNA itself seems to us to be completely defocused. What business is it in? Do they sell stationary? Because, if they

The Rebosis Saucer

Rebosis (REB), the first substantially black-owned real estate investment trust (REIT) on the JSE, over-extended itself and ended up with a loan to value ratio (LTV) of over 64%. Any REIT with an LTV above 40% is considered too highly geared, especially in an economy like South Africa’s that is in difficulties. It has had to retreat from its R1,2bn investment in New Frontier in the UK for a miserable R700m – and blamed