There is no doubt about it 2019 has been a great year for precious metals. The gold price finally broke through multi-year resistance to trade back above USD $1400oz, whilst in local currency terms, it moved beyond AUD $2000oz for the first time ever.
RBA interest rate cuts and the expectation of more to come have put downward pressure on the Australian dollar contributing to the move above AUD $2000oz. Though the bigger driver has been in the bond market with longer term government bond yields in Australia plunging to all-time lows.
In due course we’d expect that to lead to further weakness in the AUD, but given the impressive rally we have seen of late, it’s not entirely surprising to see that the market has taken a bit of a breather with gold trading in a relatively tight range over the last few weeks.
That may all come to an end by the middle of this week though with the Federal Reserve meeting this week. Most economists and market commentators are expecting an interest rate cut and with gold now seemingly entrenched in a new bull market this week’s decision may see the recent period of consolidation come to an end.
From our perspective we expect the price to be higher by the time this year’s Gold and Alternative Investments Conference kicks off!
The conference is looking great!
The gold market itself has been relatively steady the last few weeks. We’ve been on the go here at Symposium building toward our 10th annual Gold and Alternative Investments Conference (GAIC), which will kick off a little under three months from today.
We’ve just got back from a few days up at the Noosa Mining Conference which is a great event run by Phil Dickenson and supported by Morgans Financial. The mood was very positive and with a packed agenda I did pick up some more shares in interesting companies as well as a fabulous gold nugget. Six of the companies that presented there will also be appearing at the Sydney gold conference and all have strong news flow so I expect some great results come October.
At this point, we have over twenty mining companies on board for this year’s event showcasing their projects and giving investors plenty of choice for investing in the Australian gold mining sector.
No doubt that list will build as over the next two weeks I’ll be in Vancouver for the Sprott Resources Conference where there will be some great presentations and some friendly Aussie companies presenting before coming home to Sydney via Kalgoorlie (as you do) so we can speak to a number of companies at this year’s Diggers and Dealers.
It’s not all mining related though when it comes to the conference. As you will have seen last week, we announced:
- An exciting partnership with finder.com.au and HiveEx.com, a global OTC brokerage specialising in large order cryptocurrency trading. We are really excited about that as love it or hate it (and I get there are gold investors who fall into both camps), Bitcoin, and crypto more generally aren’t going away. We owe it to ourselves to learn more about this technology that has so captured the minds of young tech savvy investors, and myself and the team at Symposium are delighted with this partnership.
- Egon von Greyerz from Mattherhorn Asset Management will be one of our keynotes this year, joining us from Switzerland where his business helps protect capital for HNW families from over 60 countries. Egon will be speaking at 9am on Thursday 24th October in the main session room.
We’ve also got John Mulligan from the World Gold Council joining us to present how global gold market structure and dynamics have evolved to underpin the investment case for gold. Other key note speakers we will highlight in the lead up to this year’s event.
Gold in the News
Gold has been getting quite favourable coverage in the news over the past few weeks, in part because it has performed well, but also because high profile investors, including Ray Dalio, have come out in support of investing in the metal.
Indeed, Dalio’s recent article, titled Paradigm Shifts, was particularly forthright in its positive outlook for gold. He appears to see it as his asset of choice, noting that stocks “are unlikely to be good real returning investments and that those that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold.”
Dalio also went on to note that “Additionally, … most investors are underweighted in such assets, meaning that if they just wanted to have a better balanced portfolio to reduce risk, they would have more of this sort of asset. For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.”
Given the profile Dalio has in the investment industry and the amount of money his firm, Bridgewater, manages this coverage can only be a good thing not only for the price of gold itself but for the entire industry including miners, developers and explorers.
Even CNBC got in on the act last week, with some semi-favourable coverage, though the title to the article; Major gold bull markets are rare, but some investors are betting one is here.
Their article included the following chart, which is based off World Gold Council data.
When you see charts like the one above, you start to understand why people like Egon von Greyerz, among others, thinks the gold price could easily head a lot higher.
When you factor in all that central bank gold buying, stocks at record highs, building recession risks, over $13 trillion in negative-yielding government bonds and cuts to interest rates again, maybe it’s not so crazy to expect a gold bull market for the ages.