The gold price is proving resilient as markets have moved lower, said Soar Financial CEO Kai Hoffmann.
On Wednesday Hoffmann spoke to Wallace at the Vancouver Resource Investment Conference, the same day the S&P 500 dropped 4%, its worst one-day decline since June 2020.
“Volumes have disappeared. People are just selling trying to raise cash, but the gold price is hanging in there,” said Hoffmann. “I’ve had a couple conversations over the last few days and we’re fairly positive.”
The mining sector has been divided up into winners and losers. Exploration and development companies have performed poorly while senior gold miners and some royalty companies have seen better stock prices relative to the entire market. It’s only been a bit over three years that gold was in the $1,200 ounce range.
“[The senior gold miners] are still benefiting from fairly high gold prices. If you look at where we came from—$1,200 to $1,800 a ounce gold—they’re printing money more or less.”
Hoffmann will host his own show, Deutsche Goldmesse, in Frankfurt running from May 27 to 28, 2022.
Wallace Mining special coverage of the Vancouver Resource Investment Conference is brought to you by First Gold Mining.
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