'The sky's the limit': gold price reaches record high, but not all northern Ontario miners are cashing in

Faith Greco · CBC News

· Posted: Mar 21, 2025 5:32 AM EDT | Last Updated: 6 minutes ago

Northern Ontario golden miners from Dubreuilville to Matachewan are celebrating arsenic the price of golden continues to scope grounds heights, present trading supra $3,000 USD an ounce for the archetypal clip successful history.

"I'm ace excited. It seems unbelievable that we've reached that top. A batch of commentators predicted $3,000, but it seemed unreal, honestly. It inactive feels a spot unreal due to the fact that the determination has been really, truly fast," said Kai Hoffman, CEO of Soar Financial Group.

"I'm besides a spot worried. I'm excited and disquieted astatine the aforesaid clip due to the fact that the determination has been truthful violent, for deficiency of a amended term."

Hoffman, a fiscal expert based successful Frankfurt, Germany who has been intimately tracking the golden marketplace and its implications for the Canadian mining sector, said prices seldom spell consecutive up without a melodramatic crash.

"It's conscionable truly the hype and a batch of gut consciousness arsenic well, golden coming backmost into the mainstream discussions, Joe Rogan, Elon Musk, Donald Trump, mentioning gold… it was conscionable bringing a batch of interest and a batch of eyeballs backmost to gold, which is large successful general. But I'm small disquieted that it's excessively overmuch excessively fast," said Hoffman, adding that helium believes a $300 oregon $200 correction would beryllium steadfast to "shake immoderate escaped hands retired of the market."

He said for gold mining companies successful Timmins, Kirkland Lake and elsewhere successful bluish Ontario, currency travel is "exploding" and costs person been "somewhat nether control," with nary important "cost pressures" connected golden miners since the terms of lipid has been dropping.

Hoffman pointed to reports from Agnico Eagle, which has 2 golden mines successful the northeast, listing per ounce accumulation costs astatine $1,200 USD, meaning the institution is getting $1,800 USD nett per ounce of gold. 

However, helium said northern Ontario's inferior golden exploration assemblage is inactive struggling to pull investors needed to crook deposits into existent mines.  

"The hazard appetite for the juniors hasn't truly travel back," Hoffman said. "So the grassroots explorers are inactive struggling a small bit."

Why the increase?

The crisp emergence successful golden prices is driven by respective factors, including geopolitical tensions specified arsenic Russia's warfare connected Ukraine, instability successful the Middle East and economical uncertainty stemming from planetary commercialized disputes, explained Hoffman. 

Additionally, cardinal slope purchases from Eastern countries similar Poland and the US repatriating golden to the COMEX person further heightened marketplace uncertainty, pushing golden prices adjacent higher.

When it comes to investing successful gold, Hoffman explained that there's a quality betwixt carnal golden and golden mining stocks. Physical golden is simply a "safe haven" investment, portion mining stocks connection higher risk.

As for the future, Hoffman believes the momentum down golden is building.

"The sky's the limit. There's truthful overmuch uncertainty that is driving prices close now, I don't deliberation satellite bid is connected the docket conscionable yet, truthful there's much room," helium said. 

"Is it $4,000? It won't beryllium tomorrow, but the inclination is your person successful that respect and momentum is gathering down gold, truthful I wouldn't regularisation it out."