Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush
Over the past year, precious metal prices have surged. As of the time of this writing, the trading price of gold is approaching $2,710 per ounce, marking a 25% increase over the past 12 months.
In terms of gold prospects, central banks around the world have been stockpiling gold. Retail purchases through banks and stores such as Costco (NASDAQ: COST) have made it easier for people to acquire physical gold. Additionally, gold exchange-traded funds (ETFs) have bolstered demand.
Despite China’s recent announcement of the discovery of new gold mines, finding new low-cost deposits has become increasingly challenging in terms of supply.
Investors often turn to gold during periods of geopolitical or economic uncertainty, suggesting a positive outlook for gold prices in the short term.
Regarding silver prospects, silver prices typically fluctuate alongside gold prices, and buyers often purchase or sell these precious metals simultaneously. At the time of writing, silver is trading close to $32.50 per ounce, reflecting an approximately 40% increase over the past year.
Silver’s broad industrial applications may explain its strong performance over the last 12 months. With high electrical conductivity and antibacterial properties, silver is an ideal choice for industrial uses such as medical devices, solar panels, and electric vehicle charging stations. This metal also remains quite popular in jewelry.
With the shift towards renewable energy and electric vehicles, industrial demand for silver is expected to surge in the coming years.
In the current environment, it may be worthwhile to focus on underperforming streaming companies or major producers.
Streaming companies do not operate mines; they contract with mining companies to purchase products at discounted prices during capacity expansion phases. Mining companies enter into these contracts to raise funds for building mines. Wheaton Precious Metals Corp (TSX: WPM) is a notable streaming company to consider. As of the time of writing, WPM shares are trading at around $88 on the Toronto Stock Exchange. The stock has risen by 35% over the past year and by 135% over the past five years.
Gold giants like Barrick Gold Corporation (TSX: ABX) are also worth watching. ABX shares have increased by 7% in the past year. High inflation and mining disruptions have hindered producers, but better days are expected in the future.
In Summary: Investors looking to increase their precious metals investments should consider diversifying into gold and silver opportunities.
