4.9500 +0.02 (0.41%)
After hours: 6:31PM EDT
|Bid||4.8600 x 3000|
|Ask||4.9500 x 900|
|Day's Range||4.6900 - 5.6800|
|52 Week Range||3.5700 - 7.9000|
|Beta (5Y Monthly)||0.13|
|PE Ratio (TTM)||25.95|
|Forward Dividend & Yield||0.10 (2.00%)|
|Ex-Dividend Date||Mar 11, 2020|
|1y Target Est||7.12|
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
(Bloomberg) -- From South Africa’s ultra-deep mine shafts to vaults underneath London, from metals traders in New York skyscrapers to main-street sellers of coins: the global gold market is being tested like never before.The cracks are starting to show.Worldwide panic over the coronavirus outbreak and a flood of stimulus by central banks has ignited demand for one of humanity’s oldest methods of storing wealth. But even though there’s literally thousands of tons of gold bars sitting in vaults around the world, it’s suddenly much harder to get metal when and where it’s needed.“Since last week, face masks, hand sanitizers, toilet rolls and bullion have something new in common – they run out when everyone tries to buy them,” said Vincent Tie, sales manager at Silver Bullion Pte Ltd in Singapore.”Here are four key ways in which the gold market is being upended by the coronavirus crisis:1\. Precious MetalGold’s age-old appeal as a store of value in a time of crisis has sent demand for metal surging. Even if companies, financial institutions and nation states crumble, the virtually indestructible metal offers investors a way to convert their assets into high-value bars that can be stashed in a vault or under a mattress. For institutional investors like fund managers, gold offers a way to shield against losses elsewhere in their portfolios, while governments have relied on the metal as a universal currency that can provide a buffer for national reserves.Read More: World’s Rich ‘Desperate’ for Gold With Metal in Short Supply 2\. Not So RefinedMuch of the world’s gold is stored in vaults in London, Switzerland and New York. The largest single depository is the New York Fed, which holds 497,000 bars stacked high on the Manhattan bedrock. In London, the Bank of England in the City of London holds a further 400,000 bars, while other vaults are operated by banks and logistics companies.The gold market links these hubs with mines spread around the globe and refineries that buy up gold ore from miners and scrap bars and jewellery and produce bars and coins of various sizes – whatever is in highest demand. This week, three of the largest refiners, located in the canton of Ticino in Switzerland, were forced to close after authorities ordered a lockdown.3\. Plane TalkingIt’s getting harder to transport gold because it typically flies around the world on ordinary commercial flights, which are being canceled by the thousands.And while some flights are still moving, there’s a limit to how much gold can go on each airplane. It’s not weight, but value: it’s not possible to get insurance for more than a certain amount on any one plane. But it’s not unheard of for nations to send military planes to ship their gold around the world, complete with armed escorts.In one sign of how things have slowed down, shipping Russian gold overseas can now take about a week instead of a day, said Alexey Zaytsev, head of commodities & funding products at Otkritie bank.4\. Spreading OutAll these factors have combined to create a historic squeeze in the New York gold futures. Typically investors buy futures to get exposure to gold prices without having to worry about the day-to-day inconveniences of actually owning metal, while banks use futures to hedge their physical metal exposure.However, if investors hold their futures contract to expiry, they will receive physical metal in a specific form: one 100-ounce bar or three kilobars. Ordinarily, if the price of the New York gold futures rises too far above gold prices elsewhere in the world, banks simply buy kilobars elsewhere in the world and fly them to New York. But the disruption of global supply chains has thrown that process into doubt.Read More: Gold Market Snarled by Virus Lockdown as World Races for HavenThe result has been a sharp spike in futures prices, making metal in New York much more expensive than gold for immediate delivery in London. The surging difference – known as a spread – has rattled even veteran traders.5\. Tools DownEven mines are being disrupted, with an industrywide shut down in South Africa – unprecedented in its 150-year mining history – the most dramatic example. Operations are also being stopped or curtailed elsewhere, from Argentina to Canada.Read More: South Africa’s Mining Industry Is About to Come to a StandstillThe above-ground stocks of gold mean production disruptions are less important than for industrial metals like copper. Still, the shutdowns will add to the shockwaves rippling through the market.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Gold Fields Limited (Gold Fields) (JSE: GFI) (NYSE: GFI) fully supports the measures and policies to curb the Covid-19 pandemic implemented by the countries in which we operate.
Gold stocks were rallying, as fears over the global spread of COVID-19 helped attract buyers of the safe-haven metal. The VanEck Vectors Gold Miners ETF rose 2.0%, with 38 of 48 components trading higher, to trade at the highest prices seen since August 2016. Among the more-active U.S.-listed components, shares of Harmony Gold Mining Co. rose 4.5%, Gold Fields Ltd. gained 3.0% and Newmont Corp. hiked up 2.6%, while Hecla Mining Co. fell 2.1%. Meanwhile, continuous gold futures jumped 1.8% to the highest level seen since February 2013, and the Dow Jones Industrial Average sank 802 points, or 2.8%.
Gold Fields Limited (Gold Fields) (JSE: GFI) (NYSE: GFI) advises that headline earnings per share for the 12 months ended 31 December 2019 (FY 2019) are expected to range from US$0.19-0.21 per share, 171-200% (US$0.12-0.14 per share) higher than the headline earnings of US$0.07 per share reported for the 12 months ended 31 December 2018 (FY 2018).
Gold Fields Limited (Gold Fields) (JSE: GFI) (NYSE: GFI) is pleased to announce that the Atacama Environmental Assessment Commission today approved the environmental impact study for its Salares Norte project in Chile.
Is Gold Fields Limited (NYSE:GFI) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to […]
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Gold Fields Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Mines across South Africa shut down on Tuesday after flash flooding triggered the most severe power blackouts in more than a decade, threatening a key export sector in a further blow to the country's already slowing economy. Heavy rains across parts of South Africa have submerged entire neighbourhoods, leading to evacuations and aggravating problems at state-owned utility Eskom, which has been struggling to keep the lights on since 2008. Harmony Gold, Impala Platinum and Sibanye-Stillwater all said they had been forced to cut production since Monday because of power shortages.
If you want to know who really controls Gravitas Financial Inc. (CNSX:GFI), then you'll have to look at the makeup of...
JOHANNESBURG , Nov. 8, 2019 /PRNewswire/ -- Gold Fields Limited (NYSE: GFI) (JSE: GFI) is pleased to provide an operational update for the quarter ended 30 September 2019. Detailed financial and operational ...
Dubai, November 07, 2019 -- Moody's Investors Service ("Moody's") has today taken rating actions on five South African corporates. These rating actions follow Moody's sovereign outlook change, on 1 November, of the Government of South Africa's ratings to negative from stable and affirmation of the Baa3 long-term foreign-currency and local-currency issuer ratings.