USD $4,127.96
Goldman THE BIG QUESTION: IS IT A BUBBLE?
Stock markets pulling back as gold takes centre stage in all global markets.
On March 18th 2025 gold finally hit US$3000 rising more that 13% this year. No point asking an analyst, they just shrug their shoulders why? Central Banks are driving the demand with unprecedented buying.
Central Banks Buying Gold with their ears pegged back
Since freezing US$300 billion of Russian bank assets globally, after invading Ukraine, Central Banks seemed to have panicked and immediately commenced buying gold as their preferred option, rather than relying on foreign flat currencies. Central Banks have increased buying of gold from 17 tonnes a month to over 100 tonnes, a 500% month or month increase. The World Gold council estimates in 2024 alone, that Central Banks purchased 1,000 tonnes of gold. Just in 2025 gold backed EFTs are flying off shelves, whilst gold mine companies in production have soared from 30-+220%.
Only a handful of Australian gold stocks, in the exploration stage have rallied. Most have remained dormant, some with minor rises. The transition from exploration to a gold producer is a long and expensive road and the possibility of the gold bubble exploding, whilst in transition weighs heavily on capital raising in Australia. If it is a bubble like all bubbles, it will burst, just like all bubbles do.
Best States in Australia for mining or exploring for Gold?
WA but hurry its bureaucrats are already trying to WOKE GREEN it. The stench has started. Queensland has rotted, NT following at speed, NSW and Victoria just not a place to start.
Western Australian gold miners are having the best run, primarily, because of reasonable demands and less red tape and regulations from WA Mines Dept and EPA although, there are signs of being the best state in Australia for mining, deteriorating into a typical woke and anti-mining state organically by the greens-controlled world. Victoria, NSW, SA and NT, especially Qld are almost no-go zones for mining companies. They are all steeped in red tape and unnecessary over regulation. All of the Ministers for mines in these, forementioned states are just ”green woke.” It wont be until the revenue stream from royalties from mining stops and it hits home, but it will be too late. The bird will have flown.
Queensland Mining: from Penthouse to Shithouse A NO GO ZONE
In Qld the Mines Department is like a gestapo anti-mining, anti-everything department. The EPA in Queensland is even worse, with ridiculous demands on rehab bonds and unmanageable and un-imaginable red tape and regulations. Then to top it off, you have the landowners and cattlemen who put massive demand for compensation in the millions of dollars for the land they only lease and pay a couple of dollars a year rent for thousands of acres. Qld gets a big NO from stockbroker, investors, lenders and general investing public, what a shame, it was once the greatest mining state in Australia. The demise started when the naïve Premier of Queensland starting with Wayne Goss and then f8nished off by Peter Beattie changing the Mines Dept Act to a total disaster and it has never recovered with later Premiers and Ministers like Steven Miles who completely buried and destroyed the great reputation that Queensland had before this trio arrived on the scene. Mining was a joy and a real simple state for investment in Queensland until this trio came into office. Before this trio arrived an destroyed Queensland it took 5 days to convert an EPM (Exploration Permit) to a Mining Lease and now up to 7 years is pretty standard. That’s why it’s a “no go state for mining and exploration”. You can just about apply for an exploration permit anywhere as the whole country in Queensland as its near void of EPM’s. Doest seem to improving under this latest event, with the change in Government from Labor to the National Party Coalition.
As they say : the more it changes the more it stays the same.
The Big Question
So do I invest in gold is the big question. Gold coins were once the favorite especially old Australia sovereigns, but even collectors can’t afford to buy them anymore. The weight of a sovereign is 8.8 grams or over 1/3 of an ounce in gold, which is worth today, just in gold value $1500. Five years ago, you could not sell a sovereign for $220. My advice stay away from gold coins in any form. The dealers are the only ones making money for any gold coins. They offer you only gold price less 10% and then sell to collector for a price price usually 50% on gold price for a non-collectable gold coin. Any gold coins you have sell to ABC or other gold buyers they will pay you gold price less 3-5%.
Is it time to sell gold now? Gold is in a bubble, no question about that. We know all bubbles eventually burst, no bubble lasts forever. The bubble has been rising on waiting for Trumps tariffs. If they are reasonably low Gold will burst the bubble and US dollar will rise. So don’t be surprised Gold takes a bit of a hit $50-$100 in the next day or so after announcing the tariffs. This may cause a bit of panicking to some an and opportunity for others. Let’s see.
Good hunting gold bugs.
My next column is – The real reason gold is going up – stay tuned
