Unearthed World Gold Council

In this episode of "Unearthed," hosts Joe Cavatoni and John Reade speak with Randy Smallwood, President & CEO of Wheaton Precious Metals, discussing the innovative streaming business model that has significantly influenced the precious metals industry. As Wheaton celebrates its 20th anniversary, Randy shares insights into how this model has facilitated capital provision in exchange for byproduct production from mining operations, particularly gold and silver, establishing Wheaton as a major industry player. The conversation covers the robust gold market, driven by central bank purchases from BRIC countries, and the industrial demand and growth potential for silver. Challenges such as the decrease in new mining projects, stringent permitting processes, and the necessity for community support are examined, alongside the impact of automation and AI on improving mining efficiencies. Randy concludes with personal anecdotes and the unique value and recyclability of gold, offering a thorough perspective on the precious metals sector's financing models, market trends, and sustainability considerations.
 
[3:38] Randy hypothesizes why gold is hitting all time highs and gives insights on why that may be.
[6:37] Randy elaborates on what has impressed him about the gold demand in the past couple of years.
[11:02] The group explores the dynamic in conversation around investors expanding to other metals.
[14:35] Randy speaks about investors and what influences them the most when it comes to a decision on getting involved in a project. 
 
Additional Resources:Randy Smallwood LinkedIn 
Wheaton Precious Metals
PDAC Convention
 
Notable Quotes:
"We're going to try and change that industry with what we call streaming. And streaming is a much more partnership-focused approach to working with the operators... we supply capital for a percentage, and typically of a non-core byproduct." -Randy Smallwood
"The price is reflecting that appetite, but it just hasn't made it back to the investing public, especially on the mining sector, in terms of the companies that actually produce this gold that we all need, and so, I'm hungry for that change in appetite. Let's bring it on." -Randy Smallwood
"The only alignment that we see in BRIC is a lack of appetite for the US dollar. That's the only thing that takes some very diverse countries, economies, politics, cultures, and blends them all together, and the only constant amongst that entire group of BRIC nations is a dislike of the US dollar and a distrust of the US dollar." -Randy Smallwood
"We are very selective of what we invest into. We're always looking for assets that have high operating margins. We're seeing a dearth of those. We're seeing that dramatically drop off. There's just not as many new projects coming into play." -Randy Smallwood
About World Gold Council
We are a membership organization that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.
You can follow the World Gold Council on Twitter at @goldcouncil and LinkedIn.
Terms & Conditions | World Gold Council

[1:27] Karim elaborates on how he perceives the overall economic climate at the present.[3:08] Are we going to see growth stabilize and even accelerate?[4:24] Karim explains mega forces and how he believes they will influence portfolios and investors.[11:41] Karim dives into geo-political risks versus opportunity.[20:46] With cash allocations possibly reaching 8%, Karim hypothesizes if investors should put their cash to work.Additional Resources:John Reade’s LinkedInJoe Cavatoni’s LinkedInJohn and Joe on the vision for the Unearthed podcastMore about the World Gold CouncilKarim Chedid LinkedIn BlackRock 2024 outlook Notable Quotes:“I think that AI is a dispersion driver. It’s a dispersion of returns and a dispersion of earnings.” - Karim Chedid“We hadn’t seen valuations become too expensive, especially on the two year forward earnings perspective because of the real impact that the AI breakthrough is having on earning projections.” - Karim Chedid“The rate cuts are coming this year, we can debate how many versus how much the market is priced in, but they are coming.” - Karim Chedid“The correlation between stocks and bonds is no longer reliable because you can have quite correlated periods between stocks and bonds.” - Karim ChedidAbout World Gold CouncilWe are a membership organization that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.You can follow the World Gold Council on Twitter at @goldcouncil and LinkedIn.Terms & Conditions | World Gold Council

[4:25] Trevor elaborates more on modern industries and electronics that are using gold.[7:53] Trevor discusses growth in gold demand for technology.[11:53] Our guest explains how gold is in many consumer devices we use in daily life.[22:10] Trevor dives into gold’s role in medical devices.[25:09] Trevor share fun facts about gold.Additional Resources:Trevor Keel LinkedInNotable Quotes:“Why does the modern industry still use gold? It’s because it’s reliable, it's because it doesn't fail and it’s particularly important in high value safety critical devices. -Trevor Keel“As new technologies come onto the market, old technologies tend to disappear and particularly that is the case when you have a relatively expensive material like gold.” -Trevor Keel“Gold now is still used heavily in the electronics industry and that’s a testament to gold as a material. Last year, just over 250 tons of gold went into the electronics industry. That’s roughly 5-6% of the entire demand for gold.” -Trevor Keel“There is a significantly larger portion of gold in an EV compared to that of a traditional IC vehicle.” -Trevor Keel“You can use gold to actually help drugs get into tumors and help drugs actually better target tumors.” -Trevor KeelAbout World Gold CouncilWe are a membership organization that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.You can follow the World Gold Council on X (Twitter) at @goldcouncil and LinkedIn.Terms & Conditions | World Gold Council

[5:19] Is there a shift in central banks being net buyers and does it signal more than diversification in regards to a political and global perspective?[8:19] John elaborates on gold’s performance and its reaction in value during geopolitical events.[11:33] Joe asks Tina if the conflict in the Middle East is a function of US markets continuing to be spread thin and how she assesses it.[15:08] Can the election in 2024 have a substantial impact on the geopolitical landscape and when does that start to be priced in?[22:27] Is there something specific we should be watching in China? Additional Resources:Tina Fordham LinkedInFordham Global Foresight Website Notable Quotes:“We have a real disconnect at the moment between investor perception of how geopolitical risk registers based on past experience and the present environment, where those stabilizers and buffers are less present and less able to fulfill the traditional masking function.” -Tina Fordham“I think the risk of this conflict escalating is not priced in and it is something that I think is going to stay on the watchlist heading into 2024.” -Tina Fordham“In general my experience is that naturally there is a tendency for gold to get bought when you get a sudden unexpected pickup in geopolitical tensions like for example the russian invasion of Ukraine last year and similarly with the events that are transpiring in israel and now into Gaza.” -John Reade“This war is breaking social media and impacting the global left in ways that could influence election outcomes.” -Tina Fordham “China wants to change institutions or create new parallel institutions to challenge US hegemony.” -Tina Fordham About World Gold CouncilWe are a membership organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.You can follow the World Gold Council on Twitter at @goldcouncil and LinkedIn.Terms & Conditions | World Gold Council

In this special episode of "Unearthed," hosts John Reade and Joe Cavatoni from the World Gold Council take listeners to the London Bullion Market Association Conference in Barcelona. “On the ground” at the LBMA Conference, they engage with several industry leaders, including Greg Shearer from J.P. Morgan, Nikos Kavalis of Metals Focus, Danielle Oliari of CNT, Ross Norman of Metals Daily, Bimal Das from BMO, and Jim Steel of HSBC. The discussions revolve around two primary questions: the standout aspects of the gold market in 2023 and predictions for its trajectory in 2024. Insights reveal an emerging trend in the market, with experts sharing their unique perspectives and analysis. [2:03] Greg Shearer[6:55] Nikos Kavalis .[11:25 Danielle Oliari  [18:43] Ross Norman[22:18] Bimal Das[29:11] Jim SteelAdditional Resources:More on the LBMA Greg Shearer, Head of Base and Precious Metals Research at J.P. MorganNikos Kavalis, Director at Metals Focus LtdDanielle Oliari, C.O.O. at CNT Depository, Inc. Ross Norman, CEO at Metals DailyEdison Group’s Shades of the 1970s, as referenced by Ross Norman Bimal Das, Managing Director & Global Head, Metals Sales and Structuring at Bank of MontrealJames Steel, Chief Precious Metals Analyst at HSBCEp. 1, Unearthed: Seeing around macroeconomic corners w/ Lori Heinel, State StreetNotable Quotes:“The whole thing about a recession is that it’s a non-linear break, humans think linearly… I think that’s something that our economists are constantly debating amongst themselves.” - Greg Shearer“There is a very strong case for investing in gold or diversifying as a reserve…” - Nikos Kavalis“We are seeing a bit more of the second market coming in, still not as robust as it was pre-covid” -Danielle Oliari“The chances of a rate rise, I think in November now have fallen from about 44% down to 7%. ” - Ross Norman “There’s never the best or right or optimal time to invest, you probably have to take a view that for the longer term, this is an asset where you want to park your money..” -Bimal Das“We are seeing elevated geo political risk, we’ve seen it for several years now compared to the previous 15 years, and that’s going to keep us fairly high.” - Jim SteelAbout World Gold CouncilWe are a membership organization that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.You can follow the World Gold Council on Twitter at @goldcouncil and LinkedIn.Terms & Conditions | World Gold Council

In the latest episode of "Unearthed," hosts John Reade and Joe Cavatoni dive into the pressing question: Why are central banks stocking up on gold? As the World Gold Council's experts explore this trend, they are joined by Shaokai Fan, the authority on Central Banks and Asia-Pacific affairs. Together, they probe into record-breaking gold demand levels, the speculation of moving away from US dollar dominance, and the strategies driving allocation for reserve managers. Amidst the economic uncertainty, the trio also contrasts the moves of central banks with those of retail and institutional investors, offering a comprehensive view of the gold market's intricacies.[2:44] Shaokai explains the impact of Bretton Woods.[6:56] How do geopolitics play a role in central banks buying gold?[8:58] The hosts discuss with Shaokai why central banks hold FX reserves overall.[13:35] Shaokai explains the reasoning why central banks are holding gold specifically.[20:18] Joe and Shaokai discuss how digital currencies and crypto influence central banks.Additional Resources:Gold Demand Trends Q3 2023 Gold Reserves by Country​​2023 Central Bank Gold Reserves SurveyNotable Quotes:“For gold, (central banks) don’t look so much at return, they look at its ability to be a downside protection.” - Shaokai Fan“Central banks are some of the biggest asset owners in the world, when they’re signaling that they want to buy gold and increase the rate of their purchases, I really do think that that’s had a big impact.” - John Reade“Holding gold means that you have a certain degree of independence, of demonstrating to an international audience or sometimes a domestic audience that your country has the ability to defend its currency and defend its markets when necessary.” - Shaokai Fan“When it comes to institutional dialog with our clients, what we find there’s definitely a level of interest (in digital/crypto currency) but it’s a risk asset in their minds …and there’s a lot of work that still needs to be done before there is a wholesale adoption.” - Joseph Cavatoni“Crypto currencies don’t really fit the bill as a central bank asset. Safety, liquidity, return… not quite there yet.” - Shaokai FanAbout World Gold CouncilWe are a membership organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.You can follow the World Gold Council on Twitter at @goldcouncil and LinkedIn.Terms & Conditions | World Gold Council