TORONTO—It looks like the good mood among gold miners at last month's Prospectors & Developers Association of Canada gathering was warranted.
Gold prices notched another record above $2,300 on Friday, roughly a month after thousands of mining executives, analysts, financiers and investment bankers gathered in Toronto for the yearly conference and trade show.
At that time, gold was trading around $2,100 but was on its way higher amid expectations that the Federal Reserve will lower interest rates. Lower rates make non-interest-bearing gold more attractive. The precious metal has also gained ground amid worries over China's economy and tensions surrounding the war in Ukraine and the escalating conflict in the Middle East. Gold is often considered a safe haven in times of economic or political uncertainty.
Although gold mining stocks in general have been gaining ground, the industry is still lagging because of higher production costs. This suggests that if gold prices remain higher, mining stocks may play catch up, especially if inflationary pressures ease.
Gold prices are up around 13% so far this year, but as of Friday’s close the VanEck Gold Miners ETF (NYSE:GDX) was up less than 11%. The VanEck Junior Gold Miners ETF (NYSE:GDXJ) is closer, with a 12.55% gain.
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During the Toronto trade show in early March, gold mining companies were already celebrating gold's ascent as they pitched investors. They're undoubtedly celebrating more now.
Here are some thoughts from their pitches.
Alamos Gold Inc. (NYSE:AGI): The presentation from Scott Parsons, senior vice president of investor relations for intermediate gold producer Alamos Gold seemed particularly prescient.
As he was speaking, gold was just shy ...Full story available on Benzinga.com
Related tickers: GDX, NG, GDXJ, AGI, EQX, YGTFF, GROY, WEXPF.
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