This week of 18 August to 22August, Jordan Eliseo, General Manager, ABC Bullion said, I was proud to host our latest Precious Metals Forum: Gold and the New World Order. Held at the Ivy Ballroom Sydney, the event was fully sold out, with over 700 attendees joining us for an insightful evening of education and networking.
Headlined by Jim Rickards, the forum also included keynote speeches from Wayne Bramwell, CEO and Managing Director at Westgold Resources and Nicholas Frappell, Global Head Institutional Markets at ABC Refinery.
David Tait, CEO at the World Gold Council, also delivered a guest speech, with the forum concluding with a panel session featuring both Nicholas Frappell and Jim Rickards, as well as Shaokai Fan, Head of Asia Pacific (ex-China) and Global Head of Central Banks at the World Gold Council.
Below, we provide key takeaways from the forum, as well as shares answers to questions that were sent in from the audience.
Key Takeaways,
1) Gold Prices Have Risen a Lot Since ABC Bullion Precious Metal Forums Commenced: The first chart presented on the night provided context for what was to follow, showing the AUD gold price in August 2016, August 2019, August 2023, on the days that ABC Bullion had previously held similar forums.
Back in 2016, in the immediate aftermath of Brexit though prior to Donald Trump deciding to run for President, the gold price was trading just below AUD $1,750oz. It has risen more than AUD $3,250oz since-outperforming almost all other major asset classes since.
2) Finding Fair Value for Gold: Nicholas Frappell spoke about gold in the new epoch, looking at the changing geopolitical landscape, and the continued questions regarding global trade.
He shared the following slide, which looks at the how the gold price has deviated from ‘fair value’ (as measured by Charlie Morris of Atlas Pulse) since 2022, which is when the Russian invasion of Ukraine commenced.
It highlights the fact that gold prices are no longer purely being driven by ‘market factors’ (like movements in the USD and bond yields), with nation state actors busily acquiring bullion as a matter of strategic importance.
3) Gold isn’t Getting Any Easier to Find: Wayne Bramwell, CEO and Managing Director of Westgold, gave an excellent talk on the outlook for gold mining in Australia, and the various factors driving the market.
From talent acquisition, to engaging with local communities and regulators, there is no doubt the gold mining industry is a bright spot in the Australian economy, with 300 tonnes of gold, valued at almost AUD $50 billion, set to be mined in Australia this year.
That said, the outlook for gold production has its challenges, with the rate of discoveries falling. This is evidenced in the chart below. Gold clearly isn’t getting any easier to find. It will remain scarce, with a total supply that is incredibly stable.
Those factors will continue to give investors’ confidence in its status as a safe haven and long-term store of wealth.
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