A flat week on the market was offset by a busy two days at what is arguably Australia’s most interesting resources conference, Resources Rising Stars (RRS) on the Gold Coast, an event which produced a surprise winner in an unofficial stock-market drag race.
Gold loves trouble, which is why it retained top spot last week in portfolio planning as the Manchester outrage added to a somber mood created by political uncertainty in the US and an alarming warning from Germany’s biggest bank about the investment outlook.
Golf-lovers are familiar with the concept of amateurs competing against professionals, though it’s rare for investors to see something similar – but that’s one way of looking at the mining market where professionals are saying buy and amateurs are running for the hills.
Even with a miner’s light and an illustrated guide complete with a large X marking the spot where treasure might be found, it was damnably difficult prospecting for winners among resource stocks this week – but if you looked very, very, carefully they were there to be found, along with a few hefty losers.
Death by quarterly sounds like a medieval punishment but there is a modern version that investors in mining stocks have been suffering from over the past week, with the worst to come today, when the final surge of quarterly activity reports are filed at the stock exchange.
It was a tough week at the office for most mining stocks, as every investor in that class of shares can vouch for today, but whenever there’s a negative market event a few nuggets of value are invariably exposed, and that was the case with miners Kin and Iluka.
Gold returned with a bang this week as the Australian gold price rushed back over A$1700 an ounce thanks to a combination of increasing global political tension and a lower Australian dollar, with most local gold companies going along for the ride in a holiday-shortened week.