Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
Gold prices have risen back to all-time highs due to rising risk aversion in the market and concerns about tariffs. Foreign central banks and retail investors seem to be driving gold prices higher. According to data from the World Gold Council at the end of last year, Poland, Turkey, India and China were all big buyers. Joe Cavatoni, senior market strategist at the World Gold Council, said in an interview: “Emerging market banks are very keen on gold and have the ability to buy more gold. Strategically, they will continue to be buyers.”
Gold prices have risen about 8.5% this year. The price of gold is just below $2,900 an ounce, a record high. And before that, the price of gold rose nearly 30% in 2024.
Mining stock investors have performed even better. The VanEck Gold Miners ETF (GDX), which holds large holdings of Newmont Corp. (NEM), Agnico Eagle Mines (AEM) and Barrick Gold (GOLD), has soared more than 18% so far in 2025.
Should investors be a little cautious with gold prices having risen so much this year, on top of a big rise in 2024? Of course. It’s a wise thing to do. But it’s worth noting that if gold prices continue to climb, mining stocks may have more room to rise. This seems very reasonable.
Silver prices are also climbing, up about 14% so far this year. Alex Ebkarian, chief operating officer of Allegiance Gold, a physical precious metals trader, said that prices of both metals should continue to climb due to market uncertainty.
So how much higher can gold prices rise? Michael Arone, chief investment strategist for State Street’s (STT) SPDR business, believes that gold prices may break through $3,000 an ounce at some point this year due to changes in the global situation.
Jim Wyckoff, senior market analyst at Kitco Metals, said that given the uncertainty brought to the market by the current US government’s trade policy, coupled with the possibility that major central banks will increase gold purchases to diversify their holdings of US dollar assets, gold prices may reach $3,000 this year.
This should also be good news for the mining stocks, which are still reasonably valued despite their sharp rise this year. The VanEck Gold Miners ETF has a forward price-to-earnings ratio of 12, below its five-year average of 15.
