Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Ftse Gold Miners Slip On Talk Of End Of Systemic Risk

Recommended Posts

http://www.telegraph.co.uk/finance/markets/marketreport/7978362/FTSE-gold-miners-slip-on-talk-of-end-of-systemic-risk.html

Precious metal mining stocks were in the doldrums as top City analysts forecast an end to a period of "systemic risk" that was triggered by the banking crisis.

Citigroup argued there will once more be a level playing field between base metals and precious commodities because the bank's economists are forecasting a period of slow growth that is not accompanied by systemic risk.

Jon H Bergtheil, an analyst at Citigroup, said: "Gold shares have typically traded at more expensive multiples than base metal shares, particularly during times of systemic risk." However, Mr Bergtheil concluded that: "In 2011, we think only gold shares with good production growth will still be afforded this luxury." As a result, he donwgraded African Barrick Gold to "hold" and second liner Hochschild Mining to "sell". African Barrick Gold slipped 6 to 611½p and Hochschild Mining fell 9.1 to 362½p.

Mr Bergtheil also downgraded Lonmin to "hold". Platinum is the 'industrial metal' among the precious metals and Citigroup had hoped that in the fourth quarter of 2010 there would be a stronger trend in auto demand growth. However, according to Mr Bergtheil, this now looks unlikely. And with the fourth quarter being the quarter in which Lonmin has to shut down its smelter for a rebuild, Mr Bergtheil believes it is going to be a tough near-term newsflow environment for Lonmin. The shares dipped 30p to £15.77.

Wow a top analysts makes a prediction that the period of system risk is over. I'm relieved all this talk of double dips and the fact that the debt mountain remains I was worried the 5h1t might hit the fan, luckily I've now read a top analysts forecast that systemic risk has ended.

Anyone know how accurate this top experts previous forecasts have been?

Did he predict the crash?

Share this post


Link to post
Share on other sites

LOL. These economists get more amusing by the hour.

The systemic risk is IDENTICAL to that which existed 3 years ago. It grows greater with each passing day. We are heading to towards total and unavoidable collapse.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.