THE CONFERENCE CALLER: Noah’s Rule principal and managing director Sean Russo painted a positive picture for gold in the final presentation to the 2023 RIU Sydney Resources Round-up on Thursday.

“We’ve got a great background,” he told delegates.

“[Gold’s] not got its dual headwinds it often has … of underperforming equities and the US dollar being stronger, so things are good.

“And the world it seems, to some extent, is coming our way.”

His charted research indicated Australia was in a similar situation to the 1970s when gold was “strongly outperforming general equities”.

“And when that happens, general equity investors get really freaked out and they rush in and buy gold,” he said.

“I think this looks incredibly similar,” he continued, referring to the current point in time on the chart and citing factors including interest rate woes and financial repression.

“The gloss has come off central bankers, which is why the gloss has come on gold,” he said.

Russo noted gold had achieved a new all-time high in many currencies, including the Australian dollar and the yen, but he didn’t agree with those who thought the precious metal looked pricey.

“Gold is not expensive relative to lots of other things that most other people invest in,” he said.

“And a lot of those other things they invest in are probably challenged – and if they start to run out of that and come running to where we already are, that’s pretty exciting.”

He did suggest not going “all in” on gold, saying other commodities were even cheaper and potentially poised for a lift.

One of his charts indicated strong similarities with the lead-up to the previous commodities bull market.

“As I said last year, Goldman Sachs has talked about … the electrification of the world will require the equivalent of three times the impact of China being allowed into the WTO [World Trade Organization],” he said.

As for gold equities, Russo said the sector needed to see new buyers entering.
“We all believe … but we need to get a new group of people to come in and buy the stocks that we believe in,” he said.

“They’ve got to get the stacks on the mill, right, you’ve got to get the other people here.”