JAMES TURK The role of gold as a money has always been overlooked
Despite gold no longer being circulated as a currency, the yellow metal still has all the characteristics of money, argues online metals trader GoldMoney founder James Turk, who will address delegates at the 2014 Investing in African Mining Indaba, which will take place at the Cape Town International Convention Centre from February 3 to 6.
He tells Mining Weekly that, as the value of many currencies, including the US dollar and the euro, remains volatile, “the demand for gold will increase”.
Turk says this will, in turn, raise the price of gold and benefit mining companies’ shareholders, as well as African States that host gold mining projects.
“Gold’s role and usefulness as a currency is something that is almost always overlooked. My presentation, however, will give background information on this point and will outline details about the future of gold as money,” he highlights.
The price of gold has, however, been on the decline the past two years, having taken a turn for the worse in early 2013, when gold started trading at a value of just below $1 700 an ounce.
Nevertheless, some financial commentators maintain that the current downturn period for this commodity will not last forever, as mining is a cyclical industry. Turk agrees and believes that the downturn will soon come to an end.
“The future for gold is bright. Therefore, everyone who is involved in the industry – whether directly or indirectly – stands to benefit when the price of gold rises,” he elaborates.
Turk adds that companies and individuals involved in the mining industry should take an interest in the Mining Indaba, as it is an important platform that enables stakeholders to access information relevant to the industry.
“It provides a forum for investors to evaluate opportunities in Africa, which is critically important, as investment capital is the backbone for growth in any industry or any country’s economy,” he explains.