Key Points
- US$ Gold Price finishing two-month consolidation
- North American Gold Stocks reflecting strengthening gold
- A$ Gold Price resuming uptrend above A$1800
- ASX Gold Index exhibiting key reversal character
- Australian gold production achieves new record high of 331tpa
- Australian gold exploration hits new high of annualised ~A$1bn
- Dawes Points Dec 2014 Portfolio up 253% vs XGD up 220%
- Australian resources exports reach A$280bnpa in Dec Qtr 2018
Call me to participate:
bdawes@mpsecurities.com.au
+61 2 9222 9111
After almost six years the US$ Gold price is still meandering in a roughly US$200 band between US$1180 and US$1350. Each move toward US$1350 gets the market excited but we have seen about half a dozen false dawns in just the past three years.
The true 'fundamentals' on gold have always been unfathomable. The bullish position on so many levels has been there for years and is so clear, but price response has been muted. The Dawes Points simplified position of viewing of demand from Asia running down inventory in the West and likely to cause a short squeeze is wonderfully logical especially against the background of massive open positions on COMEX that are impossible to cover from registered COMEX stockpiles. Currency volatility continues and sovereign bonds still seem absurdly overpriced. Inflation is rising in so many sectors and all the key indicators are positive, yet the meandering continues.
But something else seems to have just happened last Friday 26 April 2019.
The ASX XGD Gold Index jumped 2.15% with some of the leaders rising 3-4%.
On COMEX after a soft start US$ gold jumped ~US$9/oz in a constructive technical pattern that could give gold the power to push through US$1300 again and back up to retest US$1350.
The breaking of the downtrends from the 2011 highs for gold and many other related assets has been highlighted here repeatedly because it is to me clearly signalling that the global change in trend is underway.
Reviewing the North American markets for gold and goldstocks is critical to an understanding of overall investor sentiment and the direction of capital flows in precious metals markets. If it not happening there it won't be happening here.
Having said that of course, the ASX senior goldstocks have been the global market leaders but the smaller stocks are currently shunned and reflect the moods for many of their North American counterparts.
Moreover, the Australian market is far too small to be representative of global trends. It is also clear that it is international funds not local funds involved in most activity in the ASX Gold Sector.
So, in the US it is the Philadelphia Gold Index ($XAU) that is the key gold index for the market place as it has the gold sector heavyweights like Barrick (GOLD) and Newmont (NEM).
As noted, we have been spoilt by the outstanding performances of the likes of NST, EVN, SBM, RRL and SAR in recent years but the XAU has still yet to break this important 2011 downtrend.
In recent times, however, the market focus has passed from the XAU Index to the Van Eck GDX goldstock ETF as the market weathervane.
This HAS actually broken its downtrend and is very constructively supporting on its breakout line and now looks ready to move higher.
As with the ASX gold stocks on Friday 26 April some North American gold stocks put on a 3-10% spurt.
Something is happening.
Rumours are suggesting a large central bank order is soaking up significant amounts of physical metal from the London market and from COMEX.
Might this be signs of the Dawes Points short cover rally we were talking about?
The US$ is gaining strength, particularly against the Euro (note the Euro might be heading for parity against the US$) but the US$ gold price is rising and the gold price in Euros is rising faster.
Gold in A$ has already broken out and is above A$1,820 again.
Positive price action of gold in many currencies shows the making of a true bull market in gold.
A bull market in ALL currencies.
From the Dawes Points perspective this constructive technical action across many markets should lead to the US$1350-70 resistance being tested and significantly exceeded in 2019.
The state of the Australian Gold Industry is excellent.
Recent Dept of Science and Industry data on Australian gold production showed a new quarterly annualised record of gold production at 331tpa.
At 331tpa Australia is the clear second largest producer of gold behind China.
Australia should see a new annual record of at least 325tonnes in 2019 and the is indeed a possibility of 350tpa within a couple of years.
Importantly, NSW (13% - mostly from Cadia and Cowal) and Victoria (5% - mostly from Fosterville) are beginning to show significant and growing shares of Australian output behind the leader WA (63%).
Expenditures on Gold Exploration are rising and the latest data giving Dec Qtr 2018 figures show an annualised rate of almost A$1000m and a very rapid and large recovery from the lows of 2014.
Some Australian companies are highlighting new gold resource discovery costs of A$10/oz but even if the figures are A$50/oz this billion-dollar expenditure should add 20 million oz (~700t) of new gold resources per annum.
This could convert to an additional 1mozpa (30tonnes) of annual gold output each year within a couple of years through mine expansions or new mines.
350tpa doesn't seem so far away.
At the same time China just might find that many of its multitude of small mines might not maintain output so China might quickly fall from its now sub 400tpa gold production to less than 350tpa.
The MPS Gold Matrix of 19 important Australian producers gives total FY2019 gold production from these 19 of about 5.3moz, up about 10.5% on FY2018. This is almost 90% Australia-only production.
This forecast to grow further so that the 2014-2021 CGR is 12%pa.
Newcrest and Kirkland Lake are not included, nor are the Australian operations of companies such as Barrick, Newmont and Goldfields. (The 21 key companies here includes two about-to-be-completed mergers to become 19 in the Matrix)
Additional stocks will be added to this Matrix so it will be clear to see that Australian gold production is still on the rise.
The performance of the XGD has historically been very robust in its bull phases.
From 2000 to 2008 it was 585% over 8 years
From 2000 to 2011 it was 750%
From the Nov 2014 low the XGD is up 243%
The technicals of the break in the 2011 downtrend, the backtest on that downtrend line and then the surge, are classic text books examples.
It should not be too long before the XGD makes new highs above the 2011 peaks.
Note that NCM currently makes up around 43% of the XGD so NCM will be a massive influence on the price level3 of the XGD.
Also, the big seven (NCM, EVN, NST, SBM, RRL, OGC and SAR) make up 90% of the XGD.
The ratio of the XGD against the A$ gold price has been an average of around 5x but this ratio is only just over 3x.
I think 5x might well be more appropriate.
That is a 66% rise in ASX Gold Index against the A$ gold price.
Coming soon.
This graphic below had shown mostly one-way traffic lower since the 2011 highs but the XGD did exceed 6,000 in March 2019 to make new six year highs.
This graphic should become very useful again once the old high of 8499 is exceeded. We will be able to look for and recognise the 25% style pullbacks that we saw in the 2000-2008 stages of this bull market.
ASX Gold Sector
The ASX XGD is not a very useful index given that is has 21 stocks and 90% of its market cap is covered by just 7 stocks.
There are hundreds of other gold companies outside the ASX XGD and that index is simply not representative.
MPS has therefore set up its own index for 25 emerging gold producers where stocks have current production, are in mining development or have a reasonable expectation of being able to mine ore and produce gold within 5 years.
Smaller stocks have significantly underperformed the XGD over the past 18-24 months.
It should be time for these smaller stocks to catch up with their bigger cap brothers.
In early December 2014 Dawes Points called the low in the ASX XGD Gold Index in that November of 2014.
In that 4 December issue of Dawes Points a portfolio of gold stocks was recommended.
The 17 stock portfolio has been published a number of times.
The key to the portfolio was to overemphasise size and liquidity but to also include smaller stocks that could provide deliver very high returns.
The portfolio has been published a few times but this is the first time the weekly performance can be seen over the past 4.5 years.
In these 4.5 years there has been no trading in the model portfolio. Just the original stocks. No adding or subtracting from holdings, no rights issue take ups or option exercise. Dividends are banked and no interest is derived from cash at bank.
Over the 53 months the portfolio returned 253% at current market prices.
The XGD was up 220% whilst the XGDAI Accumulation Index was up 208%.
The Dawes Points diverse portfolio provided the best result even though some of the smaller stocks had appalling performances.
The current moment of confluence of technical price indications is suggesting that the current market mood maybe leading to a significant low in prices for the Gold Sector assets.
Accordingly Dawes Points has suggested another 20 stock portfolio to participate in the market for the next three to five years.
Let's see how this portfolio runs.
I will tell you the stock codes in a couple of months.
You will probably be able to work out the bigger stocks but some of the smaller ones might keep you guessing.
And as a parting comment, just look at the results of the 2012-14 Resources Boom.
Total Resources Sector Commodity exports in Dec Qtr 2019 hit A$280bnpa Almost 70% of this came from just iron ore, coal and LNG.
The gains are coming from price and volumes.
The gain in total Resources export revenues since Dec Qtr 2017 was 23% up on that pcp. Prices are even higher in Mar and June Qtrs 2019.
It is hard to see a weaker A$ with a rising US$ gold price and such strong revenue growth.
The iron ore market is continuing to show the strength recognised here almost three years ago and there will be new highs in iron ore prices.
Oil is still tight and LNG prices will continue to reflect oil prices and not US domestic gas prices.
It will not be just gold that is to rise.
Call me to participate.
Barry Dawes BSc F AusIMM (CP) MSAFAA
Executive Chairman
Martin Place Securities
I own many of the stocks mentioned in this report.
+61 2 9222 9111
bdawes@mpsecurities.com.au
28 April 2019
The impact of good economic data on the Australian resources industry has been mixed. It has generally disappointed in share market performance and has suffered from low market participation and, in my view, from a complete misallocation of capital. Why is it that the A$2800bn in superannuation money is so risk averse and unsupportive of new resource or agricultural investment in Australia?
The market requires more participants and capital to more accurately reflect the underlying value generated by managers in the current commodity environment.
The big companies have reported strong earnings, balance sheets and dividends but market interest has been limited. From my long experience in this Australian Resources Market it has been perpetually clear that it is truly a rising US$ gold price that really drives market interest. And we are waiting.
Shortages in nickel, rare earths, uranium, graphite, cobalt, iron ore, oil or copper can provide short term fluctuations and excitement in a particular sector but it is the US$ gold price that brings in investors to expand the overall market participation.
So hence the preoccupation with the meanderings in gold prices.
So where are we now?
The long term view for us here starts with the abandonment of the 1944 Bretton Woods Agreement in August 1971 when President Nixon shut the convertibility of US dollars into gold in August 1971 and thereby ending the Gold Standard. This allowed currencies to float and gold to determine its own level. It also allowed politicians and bureaucrats to play and meddle with currency and bonds.
This graphic says after the 1980 US$887/oz gold price highs, a 20 year pullback brought gold back to sub US$250/oz in 2000/2001 before resuming the bull run.
The 2011 downtrend has been clearly broken but US$ gold has pulled back to retest that downtrend. This action is very positive even if the 2001-2018 uptrend has apparently been broken.
Notable here is that the time frames involved in gold moves are substantial and for many, patience does run out.
It is now late 2018 so we have had a bullmarket that began almost 20 years ago, the most recent spike high was over seven years ago and we have had five years of trench warfare in the US$1050-1375 range.
This five year base has been grinding and the trench warfare has discouraged many investors and followers.
Nevertheless, as discussed previously, markets often exhibit a symmetry and in this five year base we had about 30 months from the July 2013 low to the important December 2015 low. It was a further ~30 months from that Dec 2015 low until the August 2018 low.
So to keep this symmetry we should see US$ gold meander but then move up to ~US$1370 for another test, then a short pullback and then hopefully much higher.
Time frame is about 3-4 months, but, who knows. The runups in 2017 were suggesting breakouts then but we saw no follow through then so we do have to just wait.
Gold also broke the April 2018 downtrend after forming and breaking out from a wedge. This is very constructive.
When US$ Gold does break out of this trading range, the speed and the price level in gold, will, in my view be powerful and high.
So what will be the drivers?
The Dawes Points view has been that demand from China and India has been absorbing all available gold from the West leaving it underweight and `short'. This demand is likely to continue and also grows with rising living standards so that there will soon be very little freely saleable gold left in the West and thereby this demand will be driving the US$ gold price much higher.
The demand numbers are large. Above ground gold is generally estimated at around 180,000 tonnes being all the gold ever mined. The demand from China and India since 2008 has been 26,000 tonnes or 14% of all gold in existence. Annual demand exceeds Western mine production.
Source:GoldchartsRus
Global gold mine production of gold is about 3300 tonnes of which China contributes around 400t and Russia about 260t leaving the West producing about 2650t.
Recycled gold scrap is about 1200tpa.
Western demand for gold in the form of bars, coin, jewellery, industrial demand is around 1500tpa and Central banks are buying about 500-600tpa. So this is at least 2,000tpa leaving only 1700-1800t surplus.
The data shows Asia is importing over 3,000tpa. With the transfer of so much gold to Asia the net market in the West has been in demand/supply deficit over well over 1,000tpa for the past few years with the drawdown of gold coming from Western inventories from wherever.
Strong evidence of this is available in gold flows of 400oz London Bullion Market bars from the UK to Switzerland to be refined into 1kg bars for delivery to Asia. Little evidence is available of the flow of these 1k bars back to the West.
The overall market is now in Deficit on the basis of this supply demand model.
So the gold market is in this Deficit position with gold buying being `met' by sales of futures contracts that have no real physical backing.
Hence, seeing the net position as well as 3000tpa to China and India it is clear that the West has been running down its available gold inventory. Who used to own this inventory and is there any left?
Demand/Supply should soon lead to a short cover rally in gold that should bring prices up to US$1375 and then drive it much, much higher very quickly.
Gold ETFs are expected to see rising holdings in a rising gold market so this will add even further price pressure.
However, gold has not broken this downtrend in Euros (but it is certainly getting ready to do just that).
Nor in A$, but also the trendline break seems to be very close.
Australian gold mining producers have done very well.
However, the gold price in various currencies is really relating to the US$ itself.
Where are we going here with this US$ Index? I really don't know.
This DXY Index at 97.38 is still below the 2017 high of around 104 and the technical pattern here provides no real indication of future direction.
However, there are several factors worth noting here that may influence future levels of the US$.
In addition, several new mines in 2018/19 will add significantly to output with Kirkland Lake's Fosterville likely to bring as much as another 300,000oz in 2019 from the Swan Zone (1.16moz @ 61g/t!) alone with stope ore grades of over 70g/t and average mill grades close to 30g/t.
2018 should also see record gold output and exceeding the previous high of 3012 in 1997.
Dawes Points also sees considerable potential in WA coming from the Pilbara as well as the Yilgarn.
New important hard rock resources have been established by De Grey Mining, Callidus and Kairos that are showing the Pilbara can deliver orogenic gold.
The Pilbara Gold Conglomerates also have very great potential and I am a believer here. Novo Resources may actually have three mining operations underway by the end of 2019.
The use of ore sorters is likely to significantly lower processing costs by reducing the tonnage to be treated. Conglomerate grades of even 1-2g/t can be significantly upgraded for mills having to treat just, say, 15% of the ore feed and yet recover 70-85% of the gold.
Don't rule out another 1-2mozpa coming from the Pilbara conglomerates at very low operating costs into 2020 and beyond.
I made a presentation on the Pilbara Gold Conglomerates at the Precious Metals Investment Symposium in Perth last month. The data is compelling. Copies available on request.
The key gold producers on ASX have also been providing an impressive growth trajectory with a selected group of 21 companies providing 4.5moz production in FY18 giving a 13% CAGR since FY14.
Northern Star, Regis, Evolution, St Barbara and Saracen have provided most of the growth.
Australia's biggest gold producer Newcrest has had a few technical issues that have limited its production growth but have produced another 2.3moz from its mines in Australia and elsewhere.
The pace of exploration is also picking up with nominal exploration expenditures likely to make new highs during 2018.
The commitment to exploration and development has seen the JORC Resources of these 21 key companies grow by 30% over the past four years to 135moz at an average CAGR of 7% with the share of Measured and Indicated rising from 63% to 70%. This is net growth after annual production which is now over that 4.5mozpa. Newcrest hasn't been so fortunate but has one of the world's largest resources base with very long mine life at Cadia and Lihir and its time will come soon.
This resources growth is almost always extending mine lives, not just adding new projects.
Reserves have risen faster and for these 21 key companies are now 70% higher at 50moz than in 2014 with a 14% CAGR.
Over the past four years, these 21 stocks in this sector have added almost 40moz give a net increase of 20moz after producing over 19moz.
Again Newcrest is consolidating its resource and reserve base but has numerous exploration plays that should add significantly to resources and reserves over the next few years.
These companies have reported excellent earnings and balance sheets are now in extraordinarily good shape with cash levels unheard of in the Australian mining industry over the past 30 years. CRA, MIM, NBH, WPL, STO etc never had these cash levels in the 1980s, 1990s and 2000s. It was usually debt that was the key feature of their balance sheets.
Strong cashflows and good balance sheets allow continuing capital reinvestment and also a robust dividend stream.
The dividend flow has been steadily rising as EVN, NST and RRL have paid out an increasing share of earnings and SBM, OGC and NCM have returned to the dividend paying list.
The very profitable East Kundana Joint Venture between NST and TBR/RND has resulted in some very good earnings numbers and shareholder activism has forced a special dividends of a gross A$250m (before TBR/RND cross shareholdings). Many MPS clients received TBR dividends in excess of their entry prices for the shares!
Investors who picked up on Dawes Points mantra that `gold stocks will be better dividend stocks than banks' have done well.
The ASX S&P All Ordinaries Gold Index has performed well since the Nov 2014 low but it has failed to properly reflect the Australian Gold Industry.
The 2011 downtrend has been broken here as well and has done a good retest of the downtrend and is now ready to head higher again.
Australian Gold Stocks have been leading the world in the current reflation after bottoming in November 2014 and after the pull back from the July 2016 highs the XGD is moving up to test the 5300 level again.
This has been a very volatile market so getting the timing right is very important.
A break through 5300 should signal a strong push through with the Gold Sector being well backed by production growth, resources increases and earnings with good balance sheets and rising dividends to further help drive this market.
However, a strong US$ Gold Price makes it all happen much faster.
This Correction Graphic shows that this XGD Gold Index is still playing catch up to the previous highs in 2011.
As noted, this ASX S&P XGD Index does not reflect the Australian Gold Industry and the large weighting to major gold producer Newcrest together with some irrelevant companies like Alacer distorts the true picture further.
It also gives no relevance to exploration companies or smaller companies.
This unweighted index of ten important Australian based companies with predominantly Australian production has totally outperformed the XGD Index but also Australian based companies with offshore gold production.
Being on board the Terrific Ten led by Northern Star has been the place to be but many stocks outside this Index have performed worse than even the offshore producers.
Ask me about the stocks that might be best for your portfolios.
The Australian gold sector is certainly outperforming its North American counterparts where the XAU is really struggling. This graphic suggests (who can really tell here!) a further test of the downtrend but it seems constructive.
Nth American Gold Stocks are pretty well despised and ignored by investors there and are at horrendous lows against the S&P 500 general market. A wedge is forming so there might be some strength showing through over the new few months.
Don't forget this long term relationship between the XAU and the US$/A$ rate.
And then what this looks like with the 1913 105 year downtrend only ~US$0.05 away at a time when calls for a lower A$ are ringing.
And you might to ask yourself what does this mean for the world if the A$ against the Euro breaks this wedging and jumps up sharply?
And here, also wedging against the British Pound?
It probably means gold's strength will soon be showing.
Call me to discuss
Barry Dawes BSc F AusIMM (CP) MSA AFA
Executive Chairman
Martin Place Securities
I own NST, TBR, KLA, BLK RIO, BHP mentioned in this report.
+61 2 9222 9111
As is the Dow 30 mega stocks. This channel analysis allowed us to call that Dec Qtr 17 sharp upmove and also to see the support in the correction and now a probable new high is ahead soon too.
And the Russel 2000 looks ready to burst higher into its next channel. Expect the microcaps to do much the same.
The basis for the higher share prices is well founded.
Earnings are good and profit margins in tech companies are high and rising.
In addition, this group of US economy graphics from World Economics and the Wall Street Journal are confirming boom and inflationary pressures.
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These graphics are also highlighting the ever tightening labour market in the US but other data is showing that labour is even tighter in Japan (no immigration there!) and Germany.
Inflationary pressures could just be much stronger than you might be imagining.
The performances of some old fashioned sectors are are doing very well – retailers:-
Dow Jones US Food Retails and Wholesalers Index
And consumer discretionary stocks are out performing the S&P500.
Consumer Discretionary ETF vs S&P500
And the transports led by airlines are hitting new highs.
Dow Jones Transportation Index
The 4.1% June Qtr growth is unlikely to be a flash in the pan that so many are flagging. The bears are still growling 9 years into this massive bull market. Still growling!!
It was interesting to note that Warren Buffet's Berkshire Hathaway is also still aiming high and could soon move into its next channel to further new highs.
Interest rates are rising to better reflect borrower risk and inflation.
You will recall this from 
And bonds in my view are readying for another major fall in 2018.
Now whilst the relentless torrent of bearishness over Emerging Market economies is OK for Turkey, Argentina and Venezuela the rest of the world's emerging markets are just pulling back to the breakout line.
This graphic is telling me that China and India markets are in buying country for uptrend that will last a decade or more.
Morgan Stanley Institutional Emerging Markets Portfolio
This analysis of Emerging Markets from Oxford Economics paints a very different picture than that from the Commentariat.
But look at Shanghai from this graphic. Just pulling back to a 26 year uptrend. Many years of upside ahead.
Shanghai Stock Exchange Composite Index
India is just surging along as an important long term global leader. No Emerging Market claptrap here. Just more new highs.
India's Nifty 50 Index
Gold itself has come down to test the 2011 downtrend again. And has bounced back over US$1200.
Daily US$ Gold Price
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The long term graph broke its uptrend but more importantly it has bounced off that 2011 downtrend line in a very important manner. And the RSI is very oversold.
Long term US$ Gold Price 1980-2018
US gold stocks have been savagely hit and the XAU Index sent back to the 2008 lows giving a decade of nothing. This is definitely buying country.
Philadelphia Gold and Silver Share Index
Gold stocks against gold bullion have provided another round trip but this too is screaming BUY!.
Van Eck GDXJ Gold ETF vs US$ Gold
But this seems to be very positive in the symmetry that has been created.
Surely there is some major upside developing here. This is now a typical reversal pattern extended over five years. Resolution of this to the upside would produce a powerful upmove.
US$ Gold 2008-2018
Stepping back is possible to see here a very oversold market pulling back on the flimsiest of fake news to a major long term buying opportunity.
Do keep in mind that today's PESSIMISM is high and that pessimism ONLY occurs during Wave 2.
Pessimism and Wave 2s represent the building up of cash by investors and build up in value in stocks.
Wave 2 pullbacks are followed by Wave 3s which are major surges and lead into that Optimism Leg.
We are there right now!
In Australia we have been much more fortunate with strong gold production growth, earnings and dividends boosting our key gold stocks. Dawes Points favourites NST and CYL made new highs in the weeks before the sad scene in North America where gold stocks made lows equal to 2008 and that great performer Kirkland Lake, with its Fosterville 1.1moz @ 61g/t masterpiece and its bold investment in Novo Resources' Pilbara Conglomerates, also made a new high.
With clients having their NSTs and CYLs rising, it was hard to be bearish.
RRL, SBM, EVN, OGC, RSG and SAR have done well although these have been caught up with the malaise despite many recently reporting outstanding operating and financial results. And major cash builds. I have never seen so much cash on the balance sheets of important mining companies.
Never during the 1980s or 1990s did the leading mining companies CRA, WMC, NBH or NDY ever have this much cash. It was always a matter of how much debt!
This cash is likely to make these good companies into great companies.
Site visits have recently been made to NST's Jundee and KLA's Fosterville super mines and I can assure you there will be much more coming out about these two great mines.
Many smaller stocks however have been savaged so bargains exist all along here.
Why have stocks like PNR, BLK, GOR, GCY been treated so badly?
The gold price in A$ has held up reasonably well and the 13 year uptrend from 2005 is holding nicely so it looks ready for a bounce and resumption of the uptrend. Another break through A$1700 should lead to much higher A$ gold prices.
Gold in A$ 2000-2018
It has also been apparent that silver has been behaving in much the same way as junior gold stocks. I see it as an important weather vane to closely follow. It has been threatening to move higher against gold for a few years now.
It could be emboldened to advance quite soon.
20 Years of Silver Vs GolD
Well known silver bug Ted Butler has credibly concluded that JP Morgan actually owns about 800moz of silver bought cheaply by continually keeping the price down and also has bought multi million oz of gold. Waiting for the squeeze to come.
Copper has been brought back on similar concerns out of China with speculators and also copper-backed loans getting margin calls.
China consumes about 50% of all copper and also other metals so whatever happens there is important. However, the longer term issues of consumption growth and the lack of new supply and a very small inventory buffer still says copper prices will be higher.
Long term Copper Price 1980-2018
Even platinum is back at important support.
A$ vs Sterling 1999-2018
And of course against the US$ itself.
We are close to breaking the 18 year 2001 uptrend in a very oversold position but the 105 year downtrend is now at only US$0.78.
A$ vs US$ 1999- 2018
So it seems that the past few months has provided loads of irrelevant fake news like the continuing decline of China, the peaking of the US economy (the recession bears just seem to ignore the data shown here in this issue) and the collapse of the US equity market just because it has gone up (most of these people have been short since 2009).
This has brought about a four month correction in a major long term bull market for gold that has been consolidating for five years.
The outlook is just as positive as ever and extraordinary opportunities are here for resources stocks of all sizes and sectors.
Barry Dawes BSc F AusIMM MSAFAA
+61 2 9222 9111