Pete Wargent blogspot

Co-founder & CEO of AllenWargent property advisory & buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place) - clients include hedge funds, resi funds, & private investors.

4 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he is one of the better property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete Wargent is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data and charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, and author of the New York Times bestsellers 'End Game' and 'Code Red'.

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Thursday, 8 September 2016

That's gold

Deficit narrows

According to the ABS Australia's trade deficit improved by 26 per cent in July or $840 million to $2,410 million, with a 2.8 per cent increase in export values.

The reason for this was a $900 million or 62 per cent spike in gold exports, with gold prices rising strongly over the year to date and production expanding. 

It's interesting to consider that while Australia's quarterly iron ore exports have soared close to 200 million tonnes - about four times what the export volumes were in 2005 - there is a possibility that gold could feasibly become Australia's most valuable export commodity. Crazy, huh.

The services export boom seems to have lost a bit of traction on the above measures. The trade services balance has lifted in recent years as the Aussie dollar has depreciated, helped along by a rise in tourism and education services.

Exports underwhelm

Commodity export values have increased for iron ore in 2016, but overall the picture has been underwhelming, with exports to Japan on the slide. 

Western Australia has seen its merchandise export values improving somewhat, thanks to iron ore.

And this has helped to restore the ailing trade balance in WA.

The wrap

A better result, but overwhelmingly due to gold exports which could just as easily snap back next month. It wouldn't be a surprise to see the deficit widening though as iron ore takes its next leg down.

One thing I did notice from the Reserve Bank's figures is that the enormous rebound in coal spot prices hasn't yet been reflected in average export prices, so there may be some upside there.