Business

Simon’s weekly wrap: Revised GDP expectations and gold vs the miners


It’s been a rough year for investors and even more so if you own any cryptos. I spoke with Luno GM for Africa Marius Reitz about how his clients are responding. We also spoke about regulation as many exchanges and coins failed and managing your own due diligence, which while not easy, is critical.

At the start of the year PwC expected SA GDP growth of 2.5%-3%. But recent load shedding coupled with high petrol prices and rising rates has put paid to that. I spoke with PwC Africa chief economist Lullu Krugel about the firm’s revised expectations. They’re looking at around 1.5% GDP for the year as she admits it’s not all our own fault – but equally we’re not blameless.

The old theory is that in a period of high inflation gold is the best asset to own as a store of value. I spoke with Jithen Pillay from Allan Gray about this and whether one should hold gold or the miners instead. We also touched on his preferred gold miners.

With petrol hitting a new record high July I asked Carmen Mpelwane from Absa Asset Management about how this would impact margins and profits of listed companies. She’s been speaking with retailers and others and while it does increase costs, it’s not material in most cases. She also pointed out that pretty much every sector usesRe fuel, so the pain is everywhere, even if not material.

Also this week: Are you really paying ‘no fees’ when investing? Some people attempt to pretend they’re charging zero fees, but all the other layers are still there: Fedgroup COO Michael Field.



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