(Kitco News) - Gold prices continue to hold the line around $5,100 an ounce in what is proving to be a volatile consolidation pattern; however, according to one investor, there is still plenty of upside potential as the global economy faces extreme uncertainty and global debt remains at unsustainable levels.
In an interview with Kitco News, Byron King, editor at Paradigm Press Group, said that even as prices hold near January’s record levels, investors should not assume they have missed the opportunity. He added that structural economic shifts and renewed interest in hard assets are creating a powerful tailwind for the precious metals sector.
Speaking with Kitco during the Prospectors & Developers Association of Canada (PDAC) 2026 convention in Toronto, King said attendance at this year’s event shows sentiment among mining companies continues to strengthen as capital flows back into the sector and investors increasingly shift away from financial assets and toward tangible resources.
King noted that despite gold’s surge in recent years, the current rally may still be in its early stages. Investors who believe they missed the move from roughly $2,000 to $5,000 an ounce should focus on the potential gains ahead rather than past performance.
“People say they missed the move in gold, but they only missed the first leg,” King said. “Don’t miss the next move from $5,000 higher.”
King said the fundamental driver behind the precious metals rally remains concern over the long-term stability of fiat currencies and government debt.
With U.S. debt approaching $39 trillion, he argued that governments will likely rely on monetization and inflation rather than repayment. In that environment, holding physical precious metals serves as an important wealth preservation tool.
“If you take your money and buy a gold coin and put it away, you’ve preserved that purchasing power,” he said.
King also said he sees the current rally in precious metals as part of a broader shift toward a multipolar global economy and renewed competition for resources.
He explained that decades of financialization and underinvestment in mining have left global supply chains vulnerable, while rising geopolitical tensions and industrial demand are reinforcing the need for new resource development.
Government spending on critical minerals is also helping to drive interest. King pointed to tens of billions of dollars being directed toward mining projects tied to strategic materials such as copper, rare earths, tungsten, and antimony.
“The world is returning to hard assets,” he said. “Real things beat financial paper.”
While physical metal acts as “financial insurance,” King said mining equities offer significantly greater upside potential. He added that the current environment is a stock picker’s market across the sector, from early-stage explorers to large producers.
“The runway is wide open across the mining industry,” he said.
King also expects large producers to draw increased interest from generalist investors as rising gold prices translate into stronger cash flow and dividends.
Mining companies with established operations and disciplined management could increasingly resemble income-producing assets, similar to traditional banking or energy stocks, he said.
“If something happens to the financial system, the companies that control real assets—mines and metals in the ground—are going to have enormous value,” King said.
