Mining’s return to relevance was confirmed this spring as gold and copper prices soared and industry heavyweights went into battle over the best mines. Investors often worry they’ve missed the boat after price runs like these, but there are still plenty of opportunities out there.
The gold market has undergone a structural change in the past two years. Gold has traditionally done poorly when interest rates are high and the dollar is strong. But buying in emerging markets has pushed the precious metal price up above $2,400 an ounce (oz).
Chinese demand for gold bars and coins is at its highest level since 2017 as consumers look for alternatives to weak real estate and equity markets. Central banks have been driving prices higher for some time, with record buying in 2022 and 2023 as governments looked for alternatives to the dollar to store national wealth.