Gold stocks & info on SPI Futures

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Question asked 28/08/2021

Gold stocks & info on SPI Futures

Hi James,

Could you please comment on gold miners in general and NST, NCM and GOR in particular. Gold miners seem to be performing poorly, even as the gold price is improving. Am I missing something? Could it be costs squeezing margins? A matter which has bugged me for some time is the ASX SPI200, which I like to look at each morning as a clue to which way the market will go. The problem is that not all brokers quote this or are even aware of it, and those who do quote it are not always consistent with each other. As I understand it, the Sydney Futures Exchange, now part of ASX, provides a futures market for all or most of its indexes. It seems the ASX SPI200 as quoted is the last contract sale price for one month from the present. Can you confirm this or otherwise define it?

Cheers Stuart.

Answer

Hi Stuart,

We covered the gold miners in Fridays “What Matters Today” note, we like the sector believing it to be undervalued but we are cognisant that the market doesn’t yet agree!

We mention the SPI most mornings and use it as our yardstick to estimate where the ASX200 will start on any particular day. This contract represents a basket of stocks which reflects the ASX200 and basically trades 24-hours a day making it the perfect proxy for the index. Its theoretical price is calculated from the ASX200 + cost of carry (interest rate cost) – dividends that will be paid before the contract expires.

NB the contracts which attract the volume are the quarters March, June, September (todays) and December.

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Gold Road Resources (GOR)

LAST UPDATED 27/08/2021 18:03

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