Yesterday I discussed the gold price and provided some reasons as to why the yellow metal could move higher in the months ahead. Let me emphasise the word could.
What’s going on with the gold price? In US dollars (the most important global benchmark), it’s trading just over US$1,200 an ounce, after being well above US$1,300 an ounce earlier in the year.
Australian mineral mining company St Barbara Limited [ASX:SBM] have seen a shocking 9.8% decrease in their share price today at time of writing. In the last three months, there have been more shares sold than bought by St Barbara’s insiders.
The net short position in gold futures is now 26,500 contracts. At the depth of the bear market in December 2015, there was only two weeks where the positioning was more extreme, at 27,200 contracts.
Today, I’ll take a look at the Aussie dollar gold price, which adjusts for the difference between the US and Aussie dollar exchange rate. This is a far more important price to watch for Aussie gold stock investors.
As far as the timing on that goes, it might pay to keep an eye on the gold price. It’s been under pressure lately, at least in US dollar terms.
The massive investment into liquid natural gas (LNG) over the past decade has resulted in the development of a new export industry. It may finally start to pay off over the next few years.
AuStar Gold Limited [ASX:AUL] shows that it’s benefiting from this boom, as its shares have risen by 12.50% during the day.
Silver Lake is a gold producing company with resources in Western Australia. Silver Lake Resources Limited [ASX:SLR] shares are currently trading at 60 cents, up from 58 cents yesterday.
There is a good chance that the long term impact of this royal commission will be a complete dismantling of bank business models. As I pointed out yesterday, banks are already starting to put their funds management businesses up for sale. Next, the rest of the wealth management arms (including the financial planning networks) will probably go too.