Gwen Preston: The Fundamentals for Gold & Gold Stocks are Outstanding
Gwen discusses the reasons why the gold bear market has ended and how it is different from what most investors anticipated. Global currencies are in a race to the bottom as countries compete for trade, and central banks continue to cut interest rates. Countries want weaker currencies, and today, the US dollar stands as the counterpoint. Today’s investors are uncertain, and they are looking for a “safe haven,” and that is likely to be gold.
September is a busy month for resource investment conferences, and as gold fundamentals have improved, new investors have begun looking. She recommends investors begin with low-risk well-known companies as there will be new waves of opportunity in the gold market. Generalist fund managers are beginning to attend resource conferences, and this all bodes well for resources.
Bond markets are in an extraordinary place today, as low-risk money can no longer find returns. This paradigm shift has resulted in a lot of this money seeking gains in stock markets. However, risks are rising, and a recession may be looming, and gold is standing out in this environment. She provides a chart that demonstrates a strong correlation between bond yields and the gold price.
Geology has helped her to understand the markets, and she recommends “Mineral Exploration and Mining Essentials.” She also recommends reading the autobiographies of successful people in the sector.
She is working on creating a conference focused around bridging the gap between investors and companies involved in financing opportunities and private placements.
Time Stamp References:
0:40 – Reasons for the end of the
4:00 – Investor sentiment at conferences.
10:00 – Bond rates vs gold.
15:00 – Recommended books.
19:00 – Other precious metals and new conference.
Talking Points From This Week’s Episode
• The global race to the bottom for currencies.
• New investors are entering the sector.
• Gold becoming the new “Safe Haven” for low-risk funds.
• Opportunities may exist with platinum, palladium, and nickel.
• Bridging the gap between companies and investors in financings.
Gwen Preston is the editor and publisher of Resource Maven. Years as a mining journalist gave her a deep base of knowledge and a broad network of contacts in the resource sector. She understands which projects and pieces of news matter. She understands what it takes for a project to advance along the exploration-development-production path and what opportunities each stage offers.
She knows how the metals markets work, alone and within the global economy, and how to profit from commodity cycles. Resources are Gwen’s world, and she seeks to pass that knowledge on to others.
She has a Bachelor of Science in Chemistry from McGill University and a Masters of Journalism from the University of British Columbia.
You can find out more at her website: https://resourcemaven.ca