Barry Dawes: Gold & Silver Still Have a Very Long Way to Go

Barry is seeing new inflows of capital into gold and which is now spilling over into silver. The Canadian TSX.V is starting to show a bit of life. While Australia has been in the bull trend for longer than much of the world. This trend is due primarily to how well Australian companies are managed than the Australian dollar.

The bear market in nickel broke about a year ago, and we are seeing increasing demand. We should see good prices for the metal for quite some time.

Barry feels that we are in a long-term bull market for resources in general, including iron ore. India and China are still big consumers. Copper has been weaker than he expected, but he foresees an improvement over the next 6 to 12 months.

He questions the environmental basis for electric vehicles but recognizes that they are becoming increasingly popular. Lithium batteries have many uses, and more applications will be found. Steady demand for copper will continue regardless of E.V. adoption rates. Lithium is suffering from a lot of new hard rock material coming on the market, but prices should improve later this year.

He quotes, Sir John Templeton on markets, “Bull markets start in pessimism, rise in skepticism, mature in optimism and die in euphoria.” He discusses his favorite authors and how human psychology affects markets. Listen to all of the markets and ignore much of the media.

We need to pay attention to how gold is moving in different world currencies. We are only just starting with the gold bull market in the major currencies. Silver is going to outperform gold over the next four or five years.

Time Stamp References:
0:40 – Capital flows into precious metals.
2:10 – Australia and Canadian resource markets.
6:50 – Thoughts on nickel and copper.
9:40 – Electric vehicles and lithium.
13:20 – Favorite books and interesting people.
15:00 – Heed the markets and not the commentators.

Talking Points From This Week’s Episode
New capital is entering precious metals.
• Australia has been in the bull market for some time.
• We are still in a bull market for resources in general.
• Listen broadly to all of the markets and not the media.
• The gold bull market is just starting in major currencies.

Barry Dawes is Executive Chairman of Martin Place Securities Pty Ltd. Martin Place Securities (`MPS’) is a Sydney-based securities advisory business specializing in emerging mining, resources and energy companies. MPS offers a suite of services to its clients, including Private Wealth Management, Corporate Finance, Corporate Advisory, Stockbroking & Investment Research.

Barry has had over 30 years of investment market experience in the resources and commodities sectors in Australia and internationally.

Mr. Dawes has worked in Investment Research, Equity Capital Markets, Managed Funds, and Corporate Advisory Business Services with Small-Cap Listed companies, mostly in the Resources Sector. He has sponsored over 30 IPOs.

Barry looks at how he can provide clients with the highest level of understanding of resources operations. Along with company and investment strategies, stock selection, resources commodity outlooks, and the flow of funds in and out of the sector.

His goal is to provide institutional and high net worth clients with advice that gives outstanding investment returns in his area of expertise.

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