Gold Performing Well In The Market
Papua New Guinea is now the commodity matrix for the region. This is due to the high level of both extractive and non-extractive resources in PNG. Westpac’s senior economist Justin Smirk highlighted in Port Moresby yesterday.
While commenting on the PNG commodity market, he said gold is now out performing all other commodities in the market. He said at the moment, nickel and copper has tight supplies which gives gold the upper hand in the market.
“The commodity matrix that you’ve got here is actually positive, much more positive than Australia, so you have got this slow growth which is stable but your commodity mix is more in tuned with what is needed now that is the opportunities that we have. There are some good projects out there but we do have some problems,” he said.
Mr Smirk said the economy is PNG is changing rapidly especially when it is coming out of a big mining boom to recession. He said minerals which use to be the source of growth went down the bottom as construction and transport fall away with retail hanging on.
“This basically tells you that the basic economies and our main revenue are coming from the non mineral side. I am optimistic because the domestic growth in PNG for the last 12 months has not been linked to minerals so this means that PNG does have a natural ability to grow. It’s just a matter of how we tap into it,” Smirk said.
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