Interactive Investor

Will gold hunters get rich in 2023?

28th December 2022 16:58

by Lee Wild from interactive investor

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TV’s Aussie Gold Hunters have been making hay while gold prices are high, but what will the next year bring? Mining analyst John Meyer tells us what he thinks gold will do next year.

Lee Wild, head of equity strategy, interactive investor: Hello. With me today, I’m lucky to have John Meyer, mining analyst and broker, SP Angel. Hello, John.  

John Meyer, mining analyst, SP Angel: Hello.

Lee: John, I’ve become quite obsessed with TV’s Aussie Gold Hunters this year and it’s been a strange year for the metal, above $2,000 an ounce early in the year then in a downtrend towards $1,600, and prices not seen since early 2020, but the price has picked up recently. Do you think the Aussie gold hunters should keep digging for nuggets in the outback in 2023, or give up?

John: Those guys are definitely going to carry on. I mean, it’s a fun and relaxing activity, and it’s great if you can make money out of it. And I would recommend it to anyone, to be honest, to get out there panning for gold, or even digging for it on a larger scale. And I think gold prices are probably on the upside from here. They got hit quite hard as interest rates rose, as the US dollar rose, and of course, with the rise and rise of cryptocurrencies.

Now, we don’t need to go into the sorry tale of crypto exchanges and things like that. Disasters were always bound to happen in such an unregulated market. Thankfully, equity investors are not subject to such things. There clearly is risk in buying and holding equities, but people don’t steal – they aren’t able to steal equities in the same way.

And I think, yes, gold is likely to be a beneficiary that wins through. I mean, gold has been a popular currency for thousands of years now, and I don’t think that’s about to end. And I think, if anything, a weakening of the US dollar, which we see as quite likely at some point next year, combined with a pullback in interest rates once they’ve peaked, I think we’ll see gold rise back through $2,000 an ounce again.

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