The rand could fall to R19/$

[Purply]

Plus most countries have policies in place that stops investors from investing in junk status countries, meaning the JSE will take a HUGE hit, probably a drop of 30% in the first day.

 

[genetic]

So just after the budget speech we were doing fairly well and about R15.20-R15.50 to the Dollar. Even last night we were only about R15.70 to the Dollar. Get up this morning and it's R16.18. What the hell happened?

Brazil got downgraded to junk status.

http://www.fin24.com/Budget/rand-reels-as-junk-status-hits-brazil-amid-gordhans-budget-20160224

Moody's downgraded Brazil to junk status, which is seen as the main cause for the weakness in the rand.

Some fools who can't see beyond our borders will tell you otherwise though.

 

[R13...]

Brazil got downgraded to junk status.





Some fools who can't see beyond our borders will tell you otherwise though.

We are in BRICS and now two members of that group are junk. SA is probably next, the outlook for emerging economies isn't very good.

 

[FrankieK]

 

[xumwun]

http://www.fin24.com/Budget/what-will-happen-if-sa-is-downgraded-to-junk-20160223



Overall rand drops, we pay more, government has harder time borrowing money therefore service falls and we enter a recession. (expect major job cuts which will lead to a lot of protests/riots)

Apparently our bonds are effectively at junk already.

 

[DeathStrike]

Wow. That sucks big time. Are we still safe to invest in gold? Or will our gold mines basically become junk.

 

[xumwun]

Wow. That sucks big time. Are we still safe to invest in gold? Or will our gold mines basically become junk.

Gold is gold, doesn't matter where it comes from.

 

[CH2013]

Gold is gold, doesn't matter where it comes from.

Reckon the gold shares like Sibanye and Harmony are a buy now?

 

[Purply]

Reckon the gold shares like Sibanye and Harmony are a buy now?

If I was a betting man, I'd say that gold shares would start to fall come Monday

 

[Jola]

You have to buy physical gold, ie Krugerrands.

 

[R13...]

If I was a betting man, I'd say that gold shares would start to fall come Monday

Yes usually gold has an inverse relationship with the Rand.

 

[Arthur]

Gold isn't a good investment, at least not while the USD is the global reserve. However, as a hedge against a paper meltdown, physical gold should be part of your portfolio. Of course gold has no inherent value - like paper, it's just a proxy. But at least it's a proxy that everyone understands, can't lie with, doesn't spoil, and is easily and universally tradeable. I keep it because I'm expecting a financial Carrington Event that'll make 2008 seem benign.

 

[Thor]

Gold isn't a good investment, at least not while the USD is the global reserve. However, as a hedge against a paper meltdown, physical gold should be part of your portfolio. Of course gold has no inherent value - like paper, it's just a proxy. But at least it's a proxy that everyone understands, can't lie with, doesn't spoil, and is easily and universally tradeable. I keep it because I'm expecting a financial Carrington Event that'll make 2008 seem benign.

Still a few years away.

But on a side note I'm also interested on buying physical gold, but #1 is it legal and #2 where does one buy it

 

[biometrics]

Still a few years away.

But on a side note I'm also interested on buying physical gold, but #1 is it legal and #2 where does one buy it

http://www.krugerrandsa.co.za/index.php?Itemid=185

 

[R13...]

You can buy gold in bars in addition to coins. Someone posted a link here the other day including non bank storage

 

[Nocturnity]

You can buy gold in bars in addition to coins. Someone posted a link here the other day including non bank storage

Problem with that is that there's VAT on gold that isn't krugerrands.
But then, there's a premium on krugerrands as well. The spread is actually quite ridiculous! Buy/sell spread is over R1000! So, if you buy 1oz kruger, you immediately lose R1000.

 

[Purply]

I see the Rand has crawled back to R15.20/$, almost two weeks later after it reached @ R15.15/$

 

[Bighit]

The sad part is that we still haven't reached the level where we were at, a split second before Nene got sacked.

 

[PsYTraNc3]

If the ratings agency completes their review and it ends up with us not having junk status, that might end up with a stronger rand?
Or at least a bit more investor confidence.

 

[Purply]

If the ratings agency completes their review and it ends up with us not having junk status, that might end up with a stronger rand?
Or at least a bit more investor confidence.

Indeed, or they could just downgrade us one notch above junk status