When we talk about the correlation in prices for assets traded in financial markets we are referring to how closely those prices mimic each other.
Highly correlated assets tend to move in the same direction most of the time. A good example is the shares in our four major banks, which tend to move in unison most days, unless there is some news (either good or bad) that only affects one of the companies.
Gold Fields' Nick Holland recently took the stage at the Sydney Mining Club to give an insight into the gold miner’s growth profile and significant investments in Australia.
Being a traditional banking and finance hub, Sydney offers a fertile field of institutional investment firms open to one-on-one meetings with reputable executives spruiking quality projects while they are in town.
The value of a gold miner is based on the gold price but provides the investor with the opportunity to achieve a return in excess of the rise in the price of gold.
Recent investor articles have focused on investment in gold, be it physical or other products liked to the gold price. Those looking for exposure to gold prices can also invest in the producers of the gold itself.
The most common question first-time gold buyers ask is whether they should buy a coin or bar.
However, there are a wide range of options beyond just coins and bars, and here are the key options.
When you are thinking of buying gold the first thing you should consider is where you are going to store your gold, as it affects what form of gold you may buy as well as who to buy it from.
There are three main ways to store gold.
One question we are often asked at ABC Bullion is; how much gold or silver should I hold in my portfolio?
Discover some of the factors and options according to Chief Economist Jordan Eliseo.
Discover the eight reasons why Australian investors should consider including physical gold in their investment portfolio. Here is number 2.
2. Gold is a natural holding in low “real” interest rate environments
What are the eight key reasons why Australian investors should look at investing in physical gold as part of their investment portfolio? Here is the first.
Reason 1. Gold has demonstrated strong long-term returns in its own right.
In the last big bull market in gold in the 1970s, buying gold was straightforward with only a few options to choose from.
Today, investors are spoilt for choice, making the decision a lot more complex and confusing.
A focus on identifying new global markets for Australia’s precious metal products has paid off for The Perth Mint, which has met strong international demand for bullion bars and coins in 2015/16, and delivered a record pre-tax profit of $41.04 million.
The Perth Mint – owned and backed by the Western Australian Government - has added significant value to the export capability of both the state and the nation over the period. It has also supported and promoted Australia’s precious metals industry locally and overseas.
The gold industry is very particular when it comes to measuring gold, which is not surprising considering how valuable it is relative to its size.
While many countries moved to metric system, the precious metals industry globally continued to use the historic troy ounce as its basic unit of measure. If you think it is an unfair advantage for countries that didn’t change, like the USA, you would be wrong as a troy ounce is not the same as an ounce – is it actually heavier. It is its own unique measurement unit.
Gold Industry Group Chairman and Perth Mint Chief Executive Officer Richard Hayes, a precious metals industry expert, will headline a key group of speakers at the 7th Annual Precious Metals Investment Symposium, being held in Sydney in October.
A thought leader on the global precious metals market, Mr Hayes will share his knowledge and unique insights into the industry at the two-day event. He will also discuss the ‘case for gold’ and investing long-term in precious metals to build wealth and reduce risk.
When buying gold how do you know which brands to trust? How can you ensure you don’t get short changed on weight or purity?
Last month, Jordan Eliseo discussed the London Bullion Market Association (LBMA) accreditation process. While the LBMA’s “good delivery” only covers 400oz bars which would be out of the reach of most investors, accreditation ensures that the refining and bar manufacturing processes of an accredited company is of the highest standard. As a result, investors trust that any of the smaller bars produced by LBMA refineries will be of the stated weight and purity. A list of accredited refineries can be found on the LBMA’s website here.
The Perth Mint has unveiled stunning new designs of Australia’s official annual bullion coin program.
The 2017 suite of releases showcase Australia’s iconic fauna in their natural environment, and the tenth animal from the ancient Chinese zodiac as the lunar calendar enters the anticipated Year of the Rooster.
A unique initiative has been launched today to give Resolute Mining Limited shareholders the opportunity to receive dividend payments in gold.
Resolute has today announced a dividend of 1.7c per share following the adoption of an innovative gold sales-linked dividend policy. Their partnership with The Perth Mint will provide shareholders with the opportunity to receive dividend payments in gold.
Despite the fact it is produced around the world, and purchased by a diverse range of investors all over the globe, trading in the wholesale physical gold market is still centered in London.
The London Bullion Market Association (LBMA) is an international trade association, representing the London market for gold and silver bullion. It was set up in 1987 by the Bank of England (BoE), which was the bullion market regulator at the time.
Last month the Gold Industry Group attended ABC Bullion’s sold out seminar; “The New Bull Market in Precious Metals”. It was evident gold is in focus as more than 600 investors, finance professionals and media filled the Ivy Ballroom in Sydney.
Key-note speakers were Evolution Mining Executive Chairman Jake Klein and Cor Capital Executive Director Tom Rachcoff.
Why is money like oxygen? There is a lot of it around, and we use it all the time. Like oxygen, not surprisingly, we end up taking it for granted.
Find out the role of gold as a monetary asset and why it has been well understood across the centuries.
Australia’s largest precious metals event and the peak body of the country’s gold sector have come together in partnership at a time when enthusiasm for precious metals is at its highest in several years.
With many gold companies’ share prices having doubled and the Australian dollar gold price nudging record highs, the organiser of the Precious Metals Investment Symposium, Kerry Stevenson, says: “Our collaboration with the Gold Industry Group is a fantastic way to show the strength of the industry and its importance to Australia’s economy.
Stock to flow is arguably the most important concept for investors to understand in order to appreciate why gold is not a ‘commodity’, but rather a monetary metal.
Stock to flow is calculated simply by dividing the total existing supply of a particular commodity by the annual production of that commodity.