Reade: Gold to see more investment demand in 2025
John Reade, a Senior Market Strategist at the World Gold Council UK believes the mining industry is not growing at the level it should, due to the gap between the all-time high prices, the production level among other issues. In a chat with CNBC Africa's Fifi Peters on the sidelines of the African Mining Indaba in Cape Town South Africa, John stresses that the increasing purchase of gold by Central Banks shows appetite for the commodity.
Thu, 06 Feb 2025 12:01:16 GMT
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AI Generated Summary
- The mining industry faces challenges due to the gap between all-time high gold prices and production levels.
- Lack of new discoveries hinders growth in the sector, necessitating increased focus on exploration.
- Investment in gold exploration in Africa is hindered by uncertainties and instability, requiring a stable mining environment.
Senior Market Strategist at the World Gold Council UK, John Reade, emphasized the challenges facing the mining industry during an interview with CNBC Africa's Fifi Peters at the African Mining Indaba in Cape Town, South Africa. Reade expressed concerns about the gap between the all-time high prices of gold and the level of production. He highlighted the importance of addressing issues hindering growth in the sector. One significant point raised by Reade was the lack of new discoveries in the market. He pointed out that mining companies need to focus more on exploration to stimulate growth. However, Reade noted that uncertainty and instability in some African countries have deterred companies from investing in exploration activities. This lack of confidence in securing mining rights has been a major obstacle to attracting investments in the region. Moreover, Reade discussed the impact of the increasing demand for critical minerals on gold exploration. He acknowledged that the attention on critical minerals such as cobalt, lithium, and nickel has diverted investments away from gold mines. Despite this shift, Reade emphasized the economic importance of gold to host countries and the need for a stable mining environment to encourage exploration. Reade also touched upon the comparison between gold and cryptocurrencies, particularly Bitcoin. He debunked the notion that Bitcoin was a substitute for gold, highlighting their different performance trends. Reade suggested that both assets could coexist in a diversified investment portfolio. Looking ahead, Reade predicted a rise in investment demand for gold in 2025. He attributed this trend to market uncertainties stemming from geopolitical tensions and trade disputes. Reade highlighted the resilience of gold prices amid market volatility, projecting a potential surge in gold prices. He pointed out that the current environment of fear and uncertainty could drive investors towards safe-haven assets like gold. In conclusion, Reade expressed confidence in the future outlook for gold, despite challenges in the mining industry and evolving investment landscape.
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