Junior Mining Sector Surges as Gold Hits Record High
Record metal prices have signaled growth for the junior mining sector, with gold hitting an all-time high of US$5,589.38 per ounce on January 28 and silver following closely at US$121.62 per ounce in January.
The pressures behind the rally haven't eased, with US national debt reaching US$40.05 trillion on August 18 and the Federal Reserve raising its benchmark rate by a quarter point at its September meeting, lifting the target range to 3.75 to 4 percent.
Despite higher rates typically correlating with a sell-off in the gold market, central banks have been steady buyers, with the People’s Bank of China extending its buying streak to 22 months after adding 20 metric tons of gold to its reserves in August.
Robert Sinn of Goldfinger Capital believes the sector is entering the junior mining stage, where money flows into juniors as producers and developers look to fill project pipelines and secure critical minerals.