The only ratio that matters for gold

“Back in the day if you couldn’t see it, you couldn’t mine it”.

Sean Russo, managing director of Noah’s Rule joins Cocktails & Commodities. In this episode, Sean revisits ‘the last of the chalkies’, the impact the newly floated Aussie dollar had on gold miners hedging books, two key processes which transformed Australia’s gold mining industry and why the purple patch is the sweet spot for gold investors.

(1:52) – Starting out when Alan Bond ruled the gold sector

(4:00) ­– The last of the ‘chalkies’

(6:40) – How Australia became a gold mining behemoth

(10:17) – Aussie dollar: From parity to half

(17:00) – Look for the purple patch

(24:14) – Currency weakness, high mining costs & gold prices

(28:11) – Hedging secret: Why miners need to hedge oil

(35:00) – Where the gold price is going

(43:01) – A favourite tipple Prices correct at the time of recording