August was another great month for precious metals, with gold and silver prices up strongly. Over the last year to end August the price of both gold and silver has risen by over 35%, no doubt one of the reasons why tickets to this year’s Gold and Alternative Investments Conference are selling so briskly.
There are multiple drivers pushing gold and silver prices higher, including continued fears over the US-China trade war, the now more than USD $16 trillion in negative yielding bonds around the world and the likelihood of more monetary easing by central banks as we head toward the end of 2019.
If you want to learn more about what’s next for these markets, then you’ll want to join me at the Sydney Sofitel Wentworth from Thursday 24th to Saturday 26th October, as we delve into all things related to precious metals investing.
Don’t miss Hedley Widdup at this year’s Conference
For those of you who don’t know him, Hedley Widdup has almost twenty year’s experience in the mining industry as either a geologist or fund manager, having worked at the Mt Keith Nickel Mine, Olympic Dam, Mt Isa (Black Star open cut mine) and the St Ives Gold Mine where he was Senior Mine Geologist of the combined open pits.
Today he is a fund manager at Lion Selection Group, a specialist Listed Investment Company focused on the junior mining industry which trades on the ASX under the ticker code LSX
We recently caught up with Hedley to ask him three questions about his views on the outlook for mining investment ahead of this conference.
1). Where would you say we are in the mining investment cycle right now”
Between 8 and 9 o’clock, which at the highest level has seen a recovery in the health and share price of major miners. Juniors and explorers are yet to move (much) but the industry is well aware of this and is investing in the smaller end as well as in exploration. Greed is alive and well, and this the strongest signal the market will get from the industry. Gold companies are at the leading edge of that given the commodity has moved well ahead of most others.
2). If you could pick one key ingredient to what makes a successful mining project, what do you think it is
People. You can put as much great metal in the ground as you like, and people can still stuff it up. In as much as it’s still not possible to turn a sows ear into a silk purse, it is possible for the right people equation to make a fist of a challenging project.
3). How do you see the next few years for gold playing out?
It will go up, and it will go down. My read of gold is an intersection of macro drivers and emotion. I think the interest rate outlook is extremely supportive of gold, but that doesn’t imply a value – just a direction and it could be exciting. I temper that a bit by saying that gold tends to go up because the market thinks it should, and then goes down again because it went too hard. We all know gold is an odd commodity, to me the oddest thing is that it actually appears more likely to go further up once its run – because it broadens the number of interested buyers. This is the opposite of all other commodities.
Those are some great insights I think you’ll agree, and that’s exactly the kind of information you’ll be able to access at this year’s conference, from Hedley and all the key-note speakers.