Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
We know that the bullish gold market over the past two years started with strong buying by central banks and Chinese citizens. However, after Federal Reserve Chair Jerome Powell confirmed a policy shift, gold prices have reached new historical highs, marking a new phase in the gold bull market as Western investors begin to enter the gold market.
Amid expectations of interest rate cuts, spot gold withstood the impact of strong U.S. economic data today, achieving a V-shaped recovery.
Among the factors influencing gold prices, real interest rates are one of the core factors. Gold is a non-interest-bearing asset, and real interest rates can be seen as the opportunity cost of holding gold. Therefore, when real interest rates decline, the relative attractiveness of holding gold increases, potentially driving up gold prices.
In 2024, Marco Roque, President, CEO, and Director of Canadian gold exploration company Cassiar Gold Corp. (TSX-V: GLDC; OTCQX: CGLCF) , stated in an interview with METALS 100 that the company achieved several important milestones this year and explained why he believes Cassiar Gold is currently undervalued. Cassiar Gold holds 100% of the flagship Cassiar Gold Project and a 100% interest in properties covering most of the Sheep Creek gold camp, both located in British Columbia, Canada.
According to Sakhila Mirza, Deputy CEO of the London Bullion Market Association, the growing interest from Western investors is driving the rise in global gold prices. Gold is no longer just a popular asset in Asia; its prominence is also increasing in Western markets. Mirza noted that Western investors view gold not only as a short-term opportunity but also as a long-term investment. The appeal of gold lies in its potential to provide investors with long-term stability.
As precious metal prices set new records, the trend of buying gold ETFs has also shifted from Asian to Western investment markets.
According to data from the World Gold Council, Asian gold ETFs expanded in 38 of the past 52 weeks, but they shrank by 5.3 tons over the last two weeks, marking the largest two-week outflow since the outbreak of the Russia-Ukraine conflict in February 2022. In contrast, European and North American gold ETF products saw monthly declines from June 2023 to May 2024, but in the past eight weeks, trust funds in both regions have expanded in seven of those weeks.
Jonathan Butler, head of business development and strategy at Mitsubishi Corporation’s precious metals division, noted that over the past few months, Western investors have shown increased interest in gold asset allocation. He pointed out that since early June, global gold ETF holdings have risen by approximately 3%.
