North American Gold Rush Highlights Explorers Like Austin Gold Amid Soaring Demand

By Gerelyn Terzo, Benzinga

The 21st-century gold rush is in full swing as the price of gold hit an all-time high of nearly $2,500 per ounce in May, driven by soaring demand. However, the indecisive stance of the Federal Reserve on interest rates has left traders and investors on edge, leading to a temporary retreat in gold prices, including a drop of over $100 in the United Arab Emirates to a two-week low before a recovery.

Despite these fluctuations, gold's long-term catalysts remain strong. As a hedge against inflation and a safe-haven asset, gold continues to attract investors. Analysts predict the price of gold will soon test the $2,280-$2,300 range. Economic and geopolitical tensions have increased the allure of gold, prompting investors to allocate more of their portfolios to the precious metal. Gold's price has surged over 15% in the past six months, outperforming Bitcoin as investors favor physical assets.

Since hitting a low in Q4 2022, gold's value has increased by 40% and nearly 500% over the past two decades. Companies like Austin Gold (AMEX: AUST), with planned drilling projects in North America, are strategically positioned to benefit from this trend.

The Federal Reserve's hawkish monetary policy and high inflation have kept markets volatile. Gold experienced a correction below $2,300 in May after reaching record highs. Central banks, particularly the People’s Bank of China, have been increasing their gold reserves, which now comprise 4.3% of its reserves as of the end of 2023.

Many investors see gold's recent price drop as a buying opportunity. Retailers like Costco have struggled to keep gold bars in stock due to strong demand, selling them at around $2,000 per ounce and generating monthly sales between $100 million and $200 million, according to Wells Fargo analysts.

Bitcoin investors are reconsidering their holdings in favor of physical gold. Gold mining stocks are increasingly attractive as gold prices rise. Billionaire investor Ray Dalio advocates for owning gold to hedge against potential debt crises and high inflation, noting that gold is the third-most-held reserve currency by central banks.

Austin Gold, led by experienced industry executives, focuses on district-scale gold discoveries in the Southwestern Great Basin area of the U.S., including North Central Nevada and Southeast Oregon. Nevada, which produces three-quarters of U.S. gold, is a prime location for exploration. Executive Chairman Joseph Ovsenek emphasized the company's strategy to seek significant projects in the best gold jurisdiction.

Austin Gold's projects include Nevada’s Kelley Creek and Lone Mountain, and Oregon's Stockade Mountain Project. Recent drilling at Stockade Mountain yielded promising results, with a high gold value of 9.32 grams per tonne. The company plans further drilling to uncover high-grade vein deposits deeper in the hydrothermal system.

Investors interested in the gold mining industry and the benefits of gold as a hedge against inflation may find Austin Gold a compelling opportunity.

Featured photo by Sebastian Pichler on Unsplash

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