COMMENT FOR AUGUST 2014
Now should be the time to invest in safer resource shares that would provide capital and income growth as well. As resource shares can be very volatile a diversified selection of shares in major companies would take advantage of their expertise to produce the required results. Let us not forget that world populations are increasing and will require many products to survive and hopefully enjoy a better standard of life in future.
SEE REST OF THIS POST IS BELOW NOTES AND ALERTS
NOTE 2 SEE THE REWORKED WINTER SMALL CAP LIST ABOVE AND OTHER NEW ITEMS IN THE SIDE-BAR.
NOTE 1 THE NEWEST UPDATE IS ALWAYS AT THE BOTTOM OF THE LIST ABOVE
26/8/2014 ALERT The Platinum group user Johnson Matthey
has reported that the Rhodium price which has been lagging behind the platinum has now passed platinum's price , more than doubling from around $700 to $1400 per ounce. As it is the metal that that only smaller quantities are produced at a time there is a shortage now developing. South Africa produces 80% of the worlds supply.
The dominant largest companies now are BILITON,RIO TINTO,ANGLO ,BARRACK MINING and GLENCORE which has absorbed Xstrata. At one time Anglo was at the top of the list, but with the poor performance of platinum group metals and buying copper mines in South America at the highest prices just before the recession they have slipped to 4th position.
Now whilst Biliton and Rio Tinto have done every thing right and now are in the strongest positions doing very well ,both Anglo and Glencore are smaller now and in a better position to challenge again for the top spots.
Anglo is selling off loss making shafts in many commodities or even where they making profits ill fitting parts such as Tarmac to companies that are already in that sphere and will run it better. This is and will also in future generate a great deal of cash to enter areas such industrial metals and minerals which all the world now needs.
Glencore on the other hand has bought up many smaller producers of different minerals and metals and has also entered the farming business, which I feel needs specialist knowledge so this does not really sit well with me. How ever I feel both Anglo and Glencore are in a good more maneuverable position to do well over the years ahead.
I have started buying small quantities of both shares and will continue buying at lows after dividends have been paid. I intend holding them long term.
