‘Australians are very good at digging holes in the ground’: Gold and Iron Ore surging
Iron Ore has become the first commodity to crack $100 billion in annual exports and remains one of the key pillars supporting the Australian economy.
Exports reached $101.7 billion for the year, smashing the previous annual export record of $77.5 billion reached in the 2018-19 financial year.
Iron Ore spot prices averaged over $100 US a tonne for consecutive months. Demand for Australian iron ore has been driven by China’s infrastructure boom, the weaker Australian dollar, and major disruptions to Brazillian iron ore operations due to an outbreak of COVID-19.
It’s been a big week for base metals with Gold reaching a historic record high of US $1,944 an ounce as investors seek out the traditional safe haven amid rising global uncertainty.
InvestSMART’s Evan Lucas says iron ore can do no wrong at the moment.
“Australia has always had the best quality iron ore around,” Mr Lucas tells Brooke Corte.
“We as Australians are very good at digging holes in the ground and exporting that material and iron ore remains number one for a good reason,
“Like us, the Chinese are trying to stimulate themselves out of the COVID crisis, and that means infrastructure spending, and that means steel.”
Click play to hear the full interview: