Why Good times are Ahead for Small ASX Gold Miners

“It has been a couple of big months for gold producers – with 15 percent share price gains notched up by the established names, as gold prices start knocking on the door of $1700.

But the share price strength has prompted calls that without the gold price moving higher still, the established producers are now on the expensive side of things.

The good news is that the buoyant times for gold producers – the price in Australian dollars is up by $60 an ounce in the last three months to $1690 an ounce – has yet to filter down to the smaller, lesser-known gold producers. But it’s starting to happen and it looks like it’s shaping up as an early trend in gold equities in 2018.

Investors are no longer cold-shouldering the small producers; stepping up the search for those names which have yet to be re-rated in response to gold’s price strength.

The gold canary is singing, and it could get a lot louder in the second year of the Trump presidency, causing us to wonder whether gold, as the world’s ultimate safe-haven investment, might stretch out its recent upward run to US$1400 an ounce, and beyond.

It wasn’t supposed to be this way in 2018 with rising interest rates seen as a reason for investors to lighten their exposure to non-interest-bearing gold and shift their funds into other asset classes.

Gold, if everything was behaving according to economic theory, would today be under price pressure and falling, not rising.

The answer, in one word, is uncertainty, and lots of it.  Enter Donald Trump.

No one, perhaps not even the man himself, knows what the US President will do, or say next, creating a climate of instability which financial markets cannot tolerate.

 

Impossible as it is to pin each upward lurch in the gold price against a Trump comment, or one of his famous tweets, a pattern can be seen which connects Trump with gold, starting with the way the value of the US dollar has been falling against other major currencies.

So as the year rolls on and Trump keeps tweeting, gold stocks in Australia should rally quite nicely.”

 

 – Steve Bowes &  Stewart McDonald 

GMO Business Brokers & Vertical Events Subiaco

GMO-logo-white@2x
Facebook Twitter

Whether you dream of buying a business, want to sell your Perth or WA business, or want to know the value of your company – GMO’s business brokers and valuers are here to assist you. We have won the City of Perth Award for Business Excellence and our Managing Director has been elected as a fellow of the Australian Institute of Business Brokers. Whether you are a buyer or a seller, GMO can introduce you to the right person.

© GMO BUY A BUSINESS 2024. ALL RIGHTS RESERVED

Created by Websupport.net.au | Designed by White Mouse Design

CONFIDENTIALITY DISCLOSURE AGREEMENT

  • The disclosers are willing to disclose such information to the recipient subject to their acceptance of the following conditions:
    1. The recipient shall treat all information received from the discloser as confidential and shall ensure that all such information remains confidential and shall not use any such information in any way other than for the specific purpose aforesaid. The recipient acknowledges that all conditions subsequent in this disclosure apply to the recipient and any associates of the recipient be they partners, co‐directors, trustees, holders of shares or officersin entity(s) the recipient has interest in.
    2. The obligations of paragraph 1 shall not extend to any such information which is in the public domain, or which hereafter becomes part of the public domain otherwise than as a result of any unauthorised activity or omission of the recipient, or which is already in the possession of the recipient and was not derived from the disclosers.
    3. The recipient shall return all such information received other than that which is submitted orally at the termination of such negotiations entered into as a result of this agreement.
    4. The obligations set forth in paragraph 1, 2 and 3 shall terminate 12 months from the date of this agreement or upon the disclosers and the recipients entering into an agreement whichever event occursfirst.
    5. The recipient shall obtain no rights of any kind to such information other than for the specific purpose stated in this agreement.
    6. The receiving party will not utilise any material made available to improve, construct or change another business, in such a way as to allow that business to compete with the business being discussed.
    7. The recipient understands that the information has been compiled by GMO from details provided by the Vendor. Prospective purchasers should be aware that it is not intended that any projections or this information be treated as a representation, warranty or promise by GMO or its representatives, as to the correctness of the information, or that all relevant information is contained in the information provided.
    8. The recipient acknowledges that they will not act on information provided without first seeking independent financial and legal advice.
    9. The recipient hereby agrees to declare any beneficial interest in any business that could currently be interpreted as being in competition with the subject business.
    10. The recipient agrees to return all documents supplied within 50 days of receipt (and any copies) should they decide not to proceed. The recipient further agrees to destroy any electronic information supplied by the Seller or GMO and to instruct their professional advisors to also destroy any information passed on by the Seller, the recipient or from GMO.
    11. The recipient acknowledges they are precluded from physically visiting the premises of the business or talking to any client, supplier or employee of the business without the permission of the discloser.
    The recipient/s hereby accepts the above conditions as binding on them in respect of the information referred to.
    By ticking you are accepting and agree to our Terms & Conditions including Confidential Disclosure Agreement & Privacy Policy.

Subscribe to GMO's Monthly Hotlistings

Subscribe today to receive GMO’s monthly updates and a list of all current business opportunities
  • This field is for validation purposes and should be left unchanged.

All Search Filters

  • Business type

  • Industries

  • Search by keyword

  • Price

    $ - $

  • Net Profit

    $ - $

  • Location

  • Agents

  • Sort by Price

  • Reset