1 00:00:01,000 --> 00:00:06,199 Speaker 1: You're listening to a Shears These podcast. Gold has been exceptional, 2 00:00:06,400 --> 00:00:11,239 Speaker 1: and you know, the interesting thing about gold is it's 3 00:00:11,320 --> 00:00:15,880 Speaker 1: typically thought of as a safe haven and the constructive 4 00:00:15,920 --> 00:00:21,400 Speaker 1: backdrop for gold is weaker dollar, lower interest rates, and 5 00:00:21,560 --> 00:00:25,040 Speaker 1: uncertainty geo political uncertainty, and that's all sort of played out, 6 00:00:25,480 --> 00:00:28,520 Speaker 1: but it's gone well above and beyond. I think what 7 00:00:28,640 --> 00:00:33,480 Speaker 1: the fundamental constructive backdrop is, which may indicate a couple 8 00:00:33,520 --> 00:00:37,640 Speaker 1: of things. People are genuinely worried, and that safe haven 9 00:00:37,760 --> 00:00:43,919 Speaker 1: status continues inflation, so inflation risk. Gold is seen as 10 00:00:43,960 --> 00:00:48,800 Speaker 1: a hedge for inflation. So even though it's sort of 11 00:00:48,880 --> 00:00:52,839 Speaker 1: down into ranges where central banks wanted to get them 12 00:00:52,880 --> 00:00:56,200 Speaker 1: down to, there is risk obviously with all this tariff 13 00:00:56,240 --> 00:00:58,440 Speaker 1: and stimulus coming through that we're going to go through 14 00:00:58,480 --> 00:01:03,000 Speaker 1: another period of heightened inflation. I think that's a real risk. 15 00:01:03,360 --> 00:01:08,000 Speaker 1: So there's people buying on sort of fundamentals. But then 16 00:01:08,040 --> 00:01:11,320 Speaker 1: you've started to see a bit of euphoric activity. And 17 00:01:11,840 --> 00:01:15,160 Speaker 1: it's interesting Martin Place, just here in town. I'm sure 18 00:01:15,200 --> 00:01:17,520 Speaker 1: you've seen sort of the pictures. There's light lines out 19 00:01:17,520 --> 00:01:19,880 Speaker 1: the door. Is it a bubble? I don't think so. 20 00:01:20,319 --> 00:01:23,319 Speaker 1: Can it correct? Twenty thirty percent, I think so. So 21 00:01:23,440 --> 00:01:26,320 Speaker 1: bringing it back to the markets, the goal price itself, 22 00:01:26,440 --> 00:01:28,319 Speaker 1: I think I'll have to I'll have to check this. 23 00:01:28,360 --> 00:01:29,720 Speaker 1: I didn't check it before I came in, but I 24 00:01:29,720 --> 00:01:33,000 Speaker 1: think the goal price is up something like fifty percent. 25 00:01:33,280 --> 00:01:37,400 Speaker 1: Gold equities are up one hundred percent over the last year. 26 00:01:37,959 --> 00:01:43,160 Speaker 1: And what we've seen within that, and that's typical. There's leverage, 27 00:01:43,200 --> 00:01:46,680 Speaker 1: there's operating leverage, there's financial leverage. And in fact, the 28 00:01:46,680 --> 00:01:50,840 Speaker 1: ones that have done best are your poorer quality ones 29 00:01:50,880 --> 00:01:55,440 Speaker 1: that you know, high high cash cost to operate, which 30 00:01:55,480 --> 00:01:57,600 Speaker 1: means that the leverage that they get from a higher 31 00:01:57,600 --> 00:02:02,160 Speaker 1: goal price is more than you're good quality operators. But 32 00:02:02,560 --> 00:02:06,120 Speaker 1: you've done well owning anything gold related over this period. 33 00:02:06,680 --> 00:02:09,680 Speaker 1: Other commodities, I think I spoke about rare earths six 34 00:02:09,720 --> 00:02:14,239 Speaker 1: months ago that's had an exceptional run that's been quite 35 00:02:14,680 --> 00:02:20,440 Speaker 1: politically driven as well, that the price itself hasn't moved 36 00:02:20,440 --> 00:02:24,560 Speaker 1: too much. So that's a situation that we're cautious on 37 00:02:24,720 --> 00:02:30,880 Speaker 1: because again it's a critical metal. It's strategically important for 38 00:02:30,919 --> 00:02:34,320 Speaker 1: a number of these industries that are in big sort 39 00:02:34,360 --> 00:02:38,120 Speaker 1: of growth trajectory. But when the fundamental commodity price doesn't 40 00:02:38,200 --> 00:02:42,160 Speaker 1: move it can easily sort of whip back down, so 41 00:02:42,360 --> 00:02:45,840 Speaker 1: we're quite careful and mindful of that. Lithium is still 42 00:02:46,080 --> 00:02:48,680 Speaker 1: quite challenged. We had sort of, you know, a big 43 00:02:48,960 --> 00:02:52,480 Speaker 1: as a little sort of run up fifty percent, but 44 00:02:52,520 --> 00:02:55,760 Speaker 1: that's kind of platted out and that you have to 45 00:02:55,760 --> 00:02:59,560 Speaker 1: bring it back to supply and demand dynamics in a 46 00:02:59,600 --> 00:03:02,480 Speaker 1: lot of those markets. But yes, you can't avoid it, 47 00:03:02,520 --> 00:03:07,440 Speaker 1: and unfortunately being underweight that part of the market. For us, 48 00:03:07,800 --> 00:03:11,760 Speaker 1: we've done, it's proudly done quite well to be able 49 00:03:11,800 --> 00:03:15,600 Speaker 1: to hold the performance and deliver exceptional performance without owning 50 00:03:15,760 --> 00:03:18,840 Speaker 1: lots of those companies that have run a lot. Investing 51 00:03:18,880 --> 00:03:21,440 Speaker 1: involves for risk you might lose the money you start with. 52 00:03:21,720 --> 00:03:25,480 Speaker 1: We recommend talking to a licensed financial advisor. We also 53 00:03:25,520 --> 00:03:28,840 Speaker 1: recommend reading product disclosure documents before deciding to invest.