Too much bullishness is never a good thing! For precious metals bulls, it is worth keeping that in mind, with the metal up circa $350oz in 2016 already. Short-term, we wouldn’t be surprised to see the metal take a breather here, but with a price rise of over 25% YTD, equity markets volatile, and the cash rate moving lower, it’s no surprise that interest in the sector is skyrocketing. Evidence of that is everywhere, with ABC Bullion last week hosting a conference for over 600 investors in Sydney, whilst the just completed 25th Diggers and Dealers event in Kalgoorlie was a showcase for all things gold related, with Aussie gold miners dominating the conference agenda. We’ve even seen Bill Gross join the list of gold ‘believers’, with his latest note for Janus striking a cautious at best outlook for financial assets. Fortunately (from a contrarian perspective), the asset management community still has its share of gold skeptics, and outright critics....though the analysis often leaves a lot to be desired (VIEW LINK)
ABC Bullion Chief Economist. Gold bull since early 2000s, have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and causes of the GFC. Lover of markets, competition & technology
Really enjoyed this article Jordan.
Great read, thanks for sharing.
Agree....I like gold in the long term portfolio hedge basis, but on the commodity price perspective, we are likely to see oil outperform gold in the next 6 months.