Waiting for broader market buy-in - Mickey Fulp on high gold prices and junior resource stocks
(Kitco News) - While the year started with markedly higher gold prices, the resource sector is not seeing much benefit, according to Michael S. Fulp, the 'Mercenary Geologist.'
Fulp spoke to Kitco News last month at the 2023 Vancouver Resource Investment Conference (VRIC). He is also a Kitco contributor, and his Metals, Money, and Markets Weekly podcast is published every Friday.
Gold prices pushed well above $1,900 at the start of 2023, and though the GDX did see a short-lived bump in January, it is now down 4% on the year. Despite better gold prices and gold miners widening their margins, Fulp said the broader market is not drawn to the precious metal space.
"With the rising gold price, we've had some movement...but it has yet to trickle down," said Fulp. "I don't think the junior sector is going to prosper until the American general investor comes into our market."
Fulp also said that there may be an overhang as investors "got extremely burned when they piled into this sector in 2020. That was only 2.5 years ago."
"We're not there yet," he added. "I am not saying we're not going to get there. I hope we do, but I don't see an end to the bear market."
Coverage of Vancouver Resource Investors Conference 2023 sponsored by First Mining Gold.
|'Surprising strength' - CSE's Richard Carleton on resource sector's resilience|