I have no intention of dwelling in the past,but feel it must be pointed out that last year produced a loss on the TOP 40 shares for the first time since 2008 on the JSE.Although South Africa fared better than all the other BRICS countries(developing nations) the loss was heavier for foreigners as they lost on average 20% of value due to the weakening of the Rand.
Now as to this year ,the crises in the Euro Zone is likely to continue for some time to come.The ultimate answer will no doubt lead to a re-structuring of the Euro-Union,but that is unlikely to happen for a number of years.Partial answers buy time and as those economies tighten their belts, they will start pulling out of the worst of the problem probably towards the end of 2012.
Now all this will have an effect upon RESOURCE PRICES pushing them down to lower levels.How ever on the other side of the coin,mines cannot cut costs any further as they are in greater number starting to run at losses worldwide,most are already tightening their belts,soon the smaller operations will start to close down and therefore one should only concentrate on larger projects as they can survive longer.Platinum and Gold miners have been hard hit in Southern Africa as with the weakening Rand inflation is moving their costs much higher.
Eventually a shortage of essential minerals such as iron and other related ores will develop and the recovering world will lead to better conditions again. 2013 will in all likeness be the start of another great up-swing
Now as to this year ,the crises in the Euro Zone is likely to continue for some time to come.The ultimate answer will no doubt lead to a re-structuring of the Euro-Union,but that is unlikely to happen for a number of years.Partial answers buy time and as those economies tighten their belts, they will start pulling out of the worst of the problem probably towards the end of 2012.
Now all this will have an effect upon RESOURCE PRICES pushing them down to lower levels.How ever on the other side of the coin,mines cannot cut costs any further as they are in greater number starting to run at losses worldwide,most are already tightening their belts,soon the smaller operations will start to close down and therefore one should only concentrate on larger projects as they can survive longer.Platinum and Gold miners have been hard hit in Southern Africa as with the weakening Rand inflation is moving their costs much higher.
Eventually a shortage of essential minerals such as iron and other related ores will develop and the recovering world will lead to better conditions again. 2013 will in all likeness be the start of another great up-swing
