The gold price remained firmly above $1,900 an ounce this week, continuing an upward trajectory that began in early November. As of Friday’s close (January 27), the yellow metal was trading at about $1,927 an ounce.
Market participants were waiting for the latest PCE price index data, which analyzes personal consumption expenditures; in other words, the prices that people in the US pay for goods and services. Released at the end of the week, the new figures show basic PCE, which excludes food and energy, rose 4.4 percent on-year in December and 0.3 percent on-month.
Attention is now shifting to the next meeting of the US Federal Reserve, which is scheduled to take place from January 31 to February 1. Speculation abounds that the central bank will raise just a quarter of a percentage point, but for now we will have to wait and see.
Experts focus on financing for juniors in Roundup
This week I had the opportunity to attend the AME Roundup in Vancouver. This event is described as “by explorers for explorers” and brings together geoscientists and prospectors, as well as financiers, investors and other key industry players.
Funding was a topic that received a lot of attention, and for good reason: The volatility of 2022 made it a difficult year for many young people to raise money. In a presentation, mining finance executive Daniella Dimitrov highlighted the growing importance of raising capital from different areas, including royalty and transmission companies and alternative debt providers.
Cassie Boggs of Hecla Mining Company (NYSE:HL) also spoke about the financial challenge for juniors, saying that while the world is finally recognizing the importance of mining, new sources of cash are becoming more necessary. She mentioned the rise of family offices and also said that more mid-level miners are looking to work with juniors. Apart from that, supply chain security initiatives are driving government support for some basic products.
Noted investor and speculator Rick Rule had his own advice for young people looking for funds. He said he is actively looking to write checks, but only for companies that can go through his extensive vetting process. Among other requirements, he wants to see management teams that can explain what questions they would address with the money he could provide.
INN prepares for VRIC
With Roundup in the books, the INN team is now gearing up for the Vancouver Resource Investment Conference, scheduled for January 29-30. I’ll be there interviewing resource sector favorites like Rick Rule, Ross Beaty, Lobo Tiggre and more. If you have any questions you’d like me to ask, please email me at cmcleod@investingnews.com.
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Securities Disclosure: I, Charlotte McLeod, do not have any direct investment interest in any of the companies mentioned in this article.
Editorial Disclosure: Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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