Investing in Gold Summit: Will the gold bull run continue?

With gold nearing all-time highs in recent months, thoughts turn to the future as investors think about where the right balance of risk and reward might lie. The 2023 Investing in Gold Summit may provide some insights.

Gold prices have rallied ~20% since November 2022 on the back of a looming US banking crisis and debt ceiling, approaching its 2020 all-time high of US$ 2,075/oz (7th August 2020). 

The market is now at a major pivot point where it might either bounce off or break through this critical level, and many industry experts have predicted a bull run, with some forecasting levels as high as US$2,600/oz. 

To discuss where gold is heading in 2023, Reach is hosting an Investing in Gold Summit on Monday 22nd May at 2pm (AEST). Click here to register.

Reach has invited commodity experts, mining veterans and industry insiders with rich experience from working with some of the world’s biggest mining companies and investment banks to discuss trends in the market and how to identify potential opportunities. 

The event will see Industry experts from Mine Discovery Fund, Lion Manager and Pilar Gold discuss trends in the market, and how to identify potential opportunities. 

Asking the real experts

In November last year, when gold traded as low as US$1,620/oz, Reach Markets analysts mined the knowledge of industry leaders, including three resource-focused fund managers, a gold miner and a research company, to provide greater insight into the outlook for gold, what factors drive gold and how these experts are taking exposure. 

Reach analysts are now compiling a refresh to the review to address the new drivers of gold prices and where to from here. 

In order for Reach to compile this comprehensive and in-depth overview, they formulated and addressed a range of key questions surrounding the precious metal, including:

• What have been the main factors that have driven gold’s recent strong performance?
• What will be the price drivers going forward?
• What is your outlook for real yields on US treasuries?
• What is your outlook on the US dollar?
• What is characterising the current gold mining climate, specifically in regards to declining head grades, rising costs, and reduced major discoveries?
• How are you taking exposure to gold in your portfolio?

What factors have driven gold’s recent strong performance?

Hedley Widdup, Fund Manager at specialist mining investment company Lion Selection Group shared his view on what is behind gold’s recent run all the way through US$2,000/oz.

“Gold is reacting to inflation, and not just in the context of currencies’ value being eroded and gold’s price increasing in turn – but importantly, in the context of real yields,” Widdup said. 

“Gold tends to trade strongly in the presence of low to negative real yields – which is exactly what financial markets have been presented with. 

“The market’s consensus that central banks are at the upper limits of their ability to further hike rates without causing severe economic damage, while low to negative real yields persist, have acted as a strong tailwind for gold.”

Jeremy Gray, CEO of Laiva Gold – owners the largest gold mill in Europe – says that after a decade-long bear market for gold, “we have now entered a new bull market for the precious metal that could last for many years to come.”  

“The fear investors are harbouring over the financial system, especially the banking crisis, is leading to increased exposure to the world’s oldest store of value,” added, highlighting the commodity’s safe haven nature. 

Meanwhile, Zach Riaz, Director and Investment Manager at Banyantree Investment Group, touches on some of the macro factors that have acted as tailwinds to the gold price. 

“While the declining US dollar has been one of the big drivers, combined with increasing talks of a potential pivot by the Fed, there is also an elevated need for tail-risk insurance from geopolitical risks and broader macro issues such as the banking crisis.”

Joseph Webb, Managing Director of Mine Discovery Fund Pty Ltd, which is at the forefront of discovering tier 1 metals deposits, touches on gold’s history and the supercycles it routinely goes through. 

“Gold has been a great performer over time, and you don’t have to go back far to observe what can happen when a supercycle takes hold. Pre and post GFC from 2007-2011, gold surged from around US$700/oz all the way to US$1,800/oz – and that type of movement isn’t a once off in the market.”

To hear more experts discuss their views on gold and their outlook for 2023, join Reach Market’s Investing in Gold Summit on Monday 22nd May at 2pm (AEST). Click here to register.

This article was developed in collaboration with Reach Markets, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Investing in Gold Summit: Will the gold bull run continue? appeared first on Stockhead.

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