After the first week Mwana Africa finished up slightly, It rose 12% on monday but was likely due to a positive boost from the telegraph. I think gold will continue to rise strongly due to the dollars weakness. It is interesting to see China and India buying up all the gold they can, it looks like China are trying to become less dependant on the dollar. As Peter Schiff says, China are only lending the US money because they would lose more money if they didn't. I think as time goes on and with the US goverment consistently making wrong decisions by trying to fight the recession by artifically stimulating the economy the price of gold will only go up. This will increase the profit margins of mining companies and I think mining right now is a good investment.
Mwana Africa's share price dropped from 80p to 2.5p due to the collapse of their currency (zimbabwe dollar) and their mines then closed. It is only recently they have recieved funding to reopen their gold mine and with increased profit margins on selling gold they have great potential to do well like they orginally were. They also have deposits of nickel and copper I believe which should open once they earn enough from the Freda Rebecca gold mine. Their share price is on the road to recovery and I believe they were in better position for the future now than they were before trading at 80p a share. I think perhaps the politics in zimbabwe could be holding the share price back, but the fundamentals for mwana still look good.
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