EAC, the only fee that matters | Gold or PGMs?
💸 Know Your Fees: Effective Annual Cost (EAC) Not all fees are created equal — EAC is the real number to watch. Applies to retirement products, LISPs, and unit trusts — not to stockbrokers. 📊 Understand the difference: TER (Total Expense Ratio) TIC (Total Investment Cost) EAC (includes platform + advisor + product fees) 🍏🍏 Apples-to-apples: Compare funds using EAC. 🎯 Target an EAC between 1.1%–1.5%. 💬 Negotiate! Advisor and platform fees are often flexible. 🔍 Beware: Some brokers refuse to give the number — that’s a red flag. ❗ Platform fees: Flat > Percentage. Otherwise, your 1% could become R100,000 in fees! 🛢️ Oil Wipeout & Geopolitics Weekend U.S. strike on Iranian nuclear sites 🔥 led to… a shrug from the oil market. 📈 Oil hit $81.40 early Monday, then crashed to $67.70 by Wednesday. That’s a $14 drop, nearly 20% down — massive. 🌍 Global market awash with oil: 🇻🇪 Venezuela, 🇮🇷 Iran, 🇷🇺 Russia all pumping through sanctions ⛽ OPEC+ supply increases kicking in soon ⛴️ Straits of Hormuz risk overstated — markets unconvinced 📉 Oil heading to $60? Possibly. ⚙️ Sasol: Much Ouch ❌ Not a fan of Sasol — never been on that bus 📉 Sasol collapsed this week: down 14–15% Tuesday Currently hovering at R96, with support around R77 🧪 Chemicals weak, oil down, Rand strong = triple whammy ⚠️ Not going bust, but it’s in real pain 💱 Rand Rollercoaster 💵 USD/ZAR down from 18.15 to 17.76 🔻 Dollar weakness a key driver 🎯 R17 still very much in play 😬 Strong Rand not helping exporters like Sassol 🏦 Fed Watch: FOMC & Powell 🕊️ No rate change last week, as expected 📣 Powell grilled by Congress — MAGA heat incoming 📉 Fed still guiding for two cuts in 2025 Data outlook softening: 🏭 GDP ↓ 📈 Inflation ↑ 👷 Unemployment ↑ 🧠 Powell's just doing his job — not playing politics SA’s MPC, on the other hand… maybe a bit behind the curve ⚗️ PGMs: Shiny Again? 💬 Chat with Old Mutual: rotating out of gold, into PGMs 🔼 Platinum at 10-year highs, last seen in Oct 2014 🇿🇼 🇿🇦 Platinum from Southern Africa; 🇨🇦 🇷🇺 Palladium elsewhere 📦 Stockpiles, especially palladium, still working through 🚗 EVs: Now only expected to be 40% of sales by 2035 Existential crisis for PGMs? Delayed… for now 🧊 Recycling paused — not worth it at these prices 🥇 Pick your poison: Impala, Northam, Sibanye Stillwater*… 📦 Sibanye with PGMs, palladium & gold exposure 🪙 Gold: Still Glowing 🧲 Pullback to support around R3,330/g Could go as low as R3,200 — but not rolling over 💡 Structural shift in how investors (especially in developed markets) view gold 🛡️ Post-2022 shift: Central banks hedging against future sanctions with more gold Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order
South Africa