A week ago I invested R40k in Anglo, Harmony and Gold Fields as per my great Uncle Wilfie’s instructions.
I have received a report from Standard Bank about the gold sector and there are some little insights in the report which I though I would share with you.
“its the end of Q1 for HAR and GFI and the end of the Q3 for ANG. Unit cost are expected to increase by at least 5% to 10% quarter on quarter because of the annual wage increases, higher winter electricity tariffs and the impact of increased power from Eskom”
“We have mainted our target price on AngloGold Ashanti to be R310, Harmony R107 and Gold Fields R102.
At close of play yesterday the prices were as follows:
- ANG R180
- GFI R70
- HAR R77
“we believe the fundamentals remain intact for a long term up swing in the gold price. We believe that the drivers of the gold price are beginning to act in unison and in the long term the price will trend upwards.”
So even though I have made paper losses on Uncle Wilfie’s advice, the position is still very much intact!
dont worry, i think your uncle is onto something … i think this is a really good bet buddy
harmony is the one i would be worried about here. the company has great fundamentals so it should be good for a long term play but i think for a 12 month play you should be looking at goldfields