Gold’s cultural and economic significance, as a status symbol, a means of exchange and a store of wealth/value has been evident for thousands of years. More recent times have seen the precious metal evolve into secondary and tertiary industries with used in cutting-edge technologies and investment vehicles
The diverse uses for gold, in jewellery and technology and by central banks and investors, mean that across decades different sectors in the gold market have risen in prominence at different points in the global economic cycle. This means that, typically, there is a sustained base level of demand (source: gold.org)
Gold price has come off near historical highs but has found support at around US$1,250
While global gold supply has fallen consistently for the last five years there is still a growing physical demand in Asia. India is currently the largest export market for Australia produced gold, followed by the United Kingdom with London being a major gold market centre.
There is also a strong current investment demand through the need for inflation hedging, currency protection and as a safe haven/asset class with numerous central banks buying gold
In the past 4 years Australia has consistently ranked in the world’s top three largest gold producers. Australia is home to approximately 10 percent of world economic gold resources and has more gold reserves than any other country; at current production rates they would last another three decades. (source: Infomine.com)
Western Australia is the country’s leading gold producer state with approximately 60% of the country’s gold resources (source: Investing News Network), most of the gold production under open pit mining. The majority reserves occur in primary deposits, many of which have undergone a degree of weathering. Weathered primary deposits are important to the gold industry making it easier and cheaper to mine and recover the gold.
The long-term outlook for Nickel is positive and the world’s largest Nickel producers are confident that the next few years will see a return to robust demand growth. The main growth markets for the metal are the BRIC countries, but demand from Western economies is expected to rise as well. The automotive and aerospace industries are seen as the main catalysts for new growth as manufacturers seek to reduce fuel consumption by creating lighter weight vehicles. (source: Investing news network)