Financial planning and investment advisory services consultancy DundeeWealth Economics chief economist Dr Martin Murenbeeld’s presentation at the 2010 Mining Indaba, in Cape Town, will be on the current outlook for the gold price. He will also discuss nine developments that favour higher gold prices going forward.
Murenbeeld says that some of the developments favouring higher gold prices include fiscal and monetary policy reflation, flat mine supply and central bank demand.
He adds that he will also be discussing some of the challenges for the price outlook. These include an expected exit strategy from policy reflation and an “inevitable US dollar bottom”. The stimulation of the economy through increased money supply, or by reducing taxes, has experienced a significant amount of interest, particularly as a result of the US government’s fiscal stimulus policies introduced to lessen the effect of the global financial downturn.
Murenbeeld says that there is a significant need for more resources, as emerging economies are growing rapidly and they need resources to sustain their growth. He says that a challenge to this growth is the restrictive, socialistic and antiforeign development attitude of the mining industry in many countries. “This means that scarce mining knowledge will not easily diffuse into these economies,” he adds.
He says that the challenges presented by an apparent rise in nationalism and anticapitalism will hamper output and are not prodevelopment for host eco- nomies.
The Mining Indaba can contribute to the solution of this challenge, says Murenbeeld. He adds that the focus on Africa at the conference will be significantly beneficial, as Africa needs to develop its resources, and the relationship between Africa and the rest of the world can be mutually beneficial.
“The rest of the world desperately needs Africa’s resources, and the Mining Indaba provides African companies and governments with a venue to advertise their development and openness to investment, which helps to attract capital,” he says.
The yearly Indaba offers opportunities for a variety of participants in the mining industry to gather contacts, form relationships, allow shareholders to meet with executives and provides information and knowledge on financing and other topics.
Murenbeeld has over 28 years of independent consulting experience in the gold, currency and credit markets. He edits all DundeeWealth Economics’ reports, including the weekly ‘Gold Monitor’, the ‘Financial Monitor’ and the monthly ‘Economic Monitor’.
He often speaks at international mining and economic conferences and is an adjunct professor of international finance at the faculty of business at the University of Victoria, in Canada. He has been a regular speaker at previous Mining Indabas.