2023 Will See Gold at $2,000 as Miners’ Deposits Are Depleted

The comments below are an edited and abridged synopsis of an article by Kitco News

Gold miners need to invest in exploration instead of buybacks and dividends if they have any hope of meeting demand, according to Alastair Still, CEO of GoldMining Inc.

2023 Will See Gold at $2,000 as Miners’ Deposits Are Depleted - BullionBuzz - Nick's Top Six
Hourglass, shiny gold bar and rising sparkline chart. Time for investment. Gold price rising during the time.

Still spoke with Kitco News at the recent PDAC 2023 mining convention in Toronto, where he said that the resource depletion across the sector will require an influx of new capital committed to exploration.

Still said that even when significant new deposits are discovered, jurisdictional risks can scare off investment and hamper production.

While Still sees challenges and constraints for the industry, his outlook for gold as an investment is positive.

Still believes the market will see the yellow metal maintaining strength in the coming months. “I think we’re going to see a ‘2’ in front of the gold price this year more often than we may see a ‘1’ so a $2,000 price is certainly not any stretch of the imagination, particularly when we look at some of the peak all-time highs,” he said. “If you inflation-adjust them to today’s rates, we’ve already seen $2,000 gold, so it’s not unheard of, and I think we’ll be there this year.”

He also sees sentiment in the mining sector improving after a pullback in 2022. “We’re starting to see some cautious optimism from investors and companies alike,” he said. “Hopefully it’s a sign that what’s to come is a brighter future. It’s been a little bit of a treacherous path for a while now, but we certainly see clear sights ahead.”

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