Senior Research Analyst at FXTM
Stratospheric
Gold prices and spiritless Oil
prices would seem to indicate that the state’s investment in Gold mining is a
timely and positive one. Amid the COVID-19
pandemic, Gold remains a market-moving and safe-haven asset after spot
prices hit all-time highs above $1981 in July. The precious metal appreciated
almost 30 percent for the year-to-date and is roughly $50 away from $2000 at
the time of writing.
Fellow #Nigerians, are you
aware that our #crude #oil will soon become useless? Yes, it will, in no
distant time, become #valueless owing to the fact that the #countries that rely
on it as their only source of #energy are developing more affordable #alternative
sources of energy. When this finally happens, what will we do? How are we
currently preparing for this imminent #economic doom? Which other sector will
continue to stabilize our economy? Nigerians, the only #solution is developing
the #agricultural sector. In fact, this is the only #solution. Very soon, the
major source of revenue will become agriculture and #agro-exports. How are you
positioning yourself to play big in agro-export #business? Why don’t you get a
practical manual that explains the stages of export trade from #processing and #packaging
of #commodities to receipt of #payment by the #foreign buyers? Yes, arm
yourself with the #contemporary #trends in #export #trade. This manual explains
export #operations, export #management, export #documentations and methods of #payment
in export trade? Yes, it is a contemporary step-by-step guide to export trade.
It tells all the contemporary dynamics in export trade. To get it, click on
this link: http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Gold draws
strength from fundamentals
There
are several factors over-and-above the COVID-19 disease that are supporting
Gold prices. Safe-haven buying triggered by fears over tense US-China relations has boosted the
metal’s spot and futures prices. In recent events, the US closed one of its six consulates in China and a Chinese
consulate in Houston was closed, raising questions about whether the second
phase of trade talks can make any constructive progress.
In
addition, the Dollar’s weakness due to low yields on Treasury bonds and
exposure to negative COVID-19 sentiment has prompted investors to favour Gold
over the USD. So far this year, the Federal Reserve has followed a dovish approach
as fears mount over a second wave of COVID-19 hampering an economic recovery.
Do you know that the kind of
#vehicle you drive goes a very long way in affecting your #image? Yes, your
vehicle tells people, including your #prospective #clients, how #comfortable
you are. #Comfort is directly proportional to #competence. Of course, if you
are competent in what you do, you will be comfortable enough to afford at least
a #brand #new vehicle. Have you ever wondered why #banks and other #financial
#institutions give their #marketers brand new cars? Your level of comfort goes
a long way in determining if your prospective clients will trust you. The
reason why you have not won those contracts or deals could be because your
prospective customers think that you are incompetent owing to how worn-out your
car is. Yes, the onus is on you to acquire brand new cars. Top sales people buy
new cars every year. Do you know what? That worn-out vehicle that you currently
drive can look like a brand new one. We, at GOF AUTOS LIMITED can make it
possible via total #body #work, #refurbishing, #priming, #painting with the
best #paint in the #world called #SIKKENS #PAINT, #OVEN #BAKING with a
world-class oven and #BUFFERING. #Blue-chip #companies, #CEOs and top #managers
give us all their worn-out vehicles for body work. You, too, can enjoy our
world-class services. For details about GOF Autos Limited, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html
Nigeria’s new
Gold reserve
For
the first time, Nigeria has refined its own reserve Gold bar and paid N268
million for the 12.5 kg bar to start a central bank stock, shining a bright
spot amid all the economic headwinds. Given the previously-mentioned support
factors for the precious metal’s prices, Nigeria’s new Gold reserve comes at a
promising juncture for the country’s emerging mining industry.
It is
also an encouraging development in the diversification of the national economy
which the government hopes could lead to a stronger job market. If well
harnessed, Gold mining and trading has the ability to potentially generate more
revenue than crude Oil for Nigeria.
Extra-smart
#Nigerians are getting shares of the new #Lagos by acquiring #plots, acres and
hectares of land at #Ibeju #Lekki . What are you waiting for? Click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html
Looking at the
mathematics
The
underlying mathematics in Nigeria’s Gold market show strong potential. Nigeria’s
Gold reserve is estimated at 200 million metric tonnes, according to the Nigeria Mining Growth Roadmap.
Meanwhile, Trading Economics places Nigeria as the six largest country with
Gold deposits in Africa, with an average of 21.46 tonnes from 2000 to 2019,
reaching an all-time high of 21.51 tonnes in July 2019. The nation’s current
estimated Gold reserves are over 200 million ounces, most of which have not
been exploited.
The
newly-regulated Gold mining sector is expected to create 250,000 new jobs and
provide the Federal Government with additional estimated annual revenue of $150
million in taxes, $25 million in royalties and $500 million in foreign exchange
reserves.
Have
you heard that #Landwey is giving out plots of land at #URBAN #PRIME TWO #ESTATE
at #Abraham #Adesanya #Roundabout, #Ajah, #Lagos? You can get yours by
clicking: http://www.tectono-business.com/2020/02/urban-prime-two-estate.html
These
positive developments in the Gold mining and central bank reserve initiatives
may help to improve investor sentiment against the background of COVID-19, low
Oil prices and the expectation that Nigeria’s economy could contract by
anything from three to six percent this year. We must also factor in another
hit to export earnings caused by the deeper cuts imposed by OPEC on Nigeria and Iraq due to
overproduction.
In
conclusion, a well-managed diversification into precious metals mining and
building a national Gold stock can support the central bank’s foreign exchange
reserves long term, as well as boost other wider types of Gold trading like
derivative investments and mining stocks. However, care must be taken to
protect the new sector’s reputation and government regulations would need to be
seen as enforceable for long-term credibility.
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