Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush
During the 2020 pandemic, the price of gold broke through $2,000 per ounce for the first time. Now in 2024, with the backdrop of rising expectations for interest rate cuts, intensifying geopolitical risks, and increased central bank purchases, the price of gold has repeatedly hit new highs, highlighting the precious metal’s status as a safe haven asset.
As gold prices soar, internet searches related to gold have also increased.
Analysis of Google Trends data by U.S. Money Reserve shows that since 2019, the search volume for gold prices in the United States has increased by 11% nationwide. Additionally, over the past five years, compared to stock-related searches, gold-related searches have increased by more than 10 percentage points. Overall, the relative interest of Americans in gold prices is 49%, while stocks are at 51%. This indicates that gold’s status in the eyes of American investors is continuously rising.
So far this year, the U.S. stock market has been on a high note, with major stock indices reaching new highs. However, some analysts have pointed out that the S&P 500 index has shown a double-top pattern, and low-volume increases are a signal that major stock indices are about to undergo a significant correction. Considering this, if the trend reversal of the U.S. stock market is confirmed, coupled with a weakening economy, gold may become the preferred investment for investors, just as it did in 2011 and 2012 when real estate and stocks were in a slump.
The Gallup poll released in May shows that gold ranks as the third best long-term investment choice in the eyes of Americans, following only real estate and stocks. Specifically, 36% of respondents chose real estate, followed by stocks or mutual funds (22%), gold (18%), and savings accounts or CDs (13%). Gallup found that relatively few Americans believe that bonds (4%) or cryptocurrencies (3%) are the best long-term investments.
However, Gallup pointed out that there is a significant difference in the interest of different groups of Americans in gold.
First is the difference between political parties. The survey results show that currently, 27% of Republicans choose gold as the best investment, while only 7% of Democrats and 18% of independents do. Overall, except for 2013, Republicans are more likely to favor gold than Democrats, and this gap has widened significantly since Biden took office in 2020.
In addition, Google Trends data over the past five years shows that residents in the western half of the United States, especially in the Mountain West and Alaska, have a much higher interest in gold (relative to stocks) compared to residents in the eastern half of the United States.
In Alaska, internet searches for terms containing ‘gold prices’ outpaced searches for terms containing ‘stock prices’ by a factor of more than three, due to the state’s rich history of gold mining and its economy, which relies heavily on natural resources. Similarly, states such as Montana, Nevada, and New Mexico also show a strong inclination towards gold as a financial asset, with approximately twice as many gold-related searches as stock-related searches in recent years.
In contrast, states in the eastern part of the country show a lower interest in gold relative to stocks. For example, residents in Virginia search for stock prices nearly twice as often as gold prices, and similar trends are observed in Delaware, Rhode Island, and Connecticut.
