International Graphite (IG6:AU) has announced Institutional Investment
Download the PDF here.
This post appeared first on investingnews.com
Investor Insight
With a growth-oriented strategy, Golconda Gold is positioning itself as one of the highest-torque junior gold producers in the sector with assets in prolific gold districts in South Africa and the US. For investors bullish on gold, Golconda is a unique opportunity: a profitable producer with meaningful growth ahead, exposure to both gold and silver, and the discipline to deliver shareholder value in a capital-efficient way.
Overview
Golconda Gold (TSXV:GG;OTCQB:GGGOF) is an unhedged gold producer and explorer with operations in South Africa and the United States. The company is focused on optimizing its current mining and processing operations, reducing costs, and growing organically while pursuing accretive acquisition opportunities.
Its growth story is underpinned by two cornerstone assets: Galaxy Gold, the company’s cash-flowing, long-life South African operation; and Summit, a high-grade silver-gold project in New Mexico poised for a restart. Galaxy provides a steadily growing, self-funded production base, while Summit is positioned as the next major catalyst for Golconda, broadening investor exposure to silver and US operations. These assets enable Golconda to deliver meaningful production growth without dilution, providing investors direct leverage to gold prices at a time when juniors remain undervalued relative to commodity prices.
With strong insider ownership and a disciplined approach to capital, Golconda offers investors a unique combination of operating stability, near-term growth and upside exploration potential.
Company Highlights
- Significant Production Growth: On track to triple production over three years at Galaxy while bringing Summit online in Q2 2026.
- Summit Restart and Spin-out: Fully permitted past-producing mine in New Mexico, expected to restart in Q2 2026 and spin out as a standalone US-focused gold-silver producer in Q4 2026.
- No Dilution Strategy: Growth funded through operating cash flow rather than equity raises, ensuring torque to gold without shareholder dilution.
- Insider Alignment: Management and insiders control more than 40 percent of shares, aligning leadership directly with shareholder interests.
- Jurisdictional Strengths: Operations in South Africa’s Barberton Greenstone Belt (long history of gold mining, strong infrastructure) and in the US southwest.
- Exploration Upside: Both Galaxy and Summit hold substantial untested upside with additional ore bodies and underexplored zones.
Key Projects
Galaxy Gold Mine
Galaxy is Golconda’s cornerstone asset and currently the company’s sole producing mine. Situated in the Barberton Greenstone Belt, one of South Africa’s most prolific gold districts with nearly 150 years of mining history, the mine benefits from established infrastructure, sealed-road access and proximity to skilled mining services. The property hosts a large resource base of 941,000 oz of gold in the measured and indicated categories grading 2.79 grams per ton (g/t), plus 1.37 million oz (Moz) inferred at 2.62 g/t.
Snapshot of Galaxy Gold Mine Operations
The operation is an underground, trackless mechanized mine, currently producing at a run rate of ~12,000 oz/year, with a multi-stage ramp-up plan to 25,000 oz/year by 2027 and up to 45,000 oz/year by 2028. Ore is processed through a 50,000 tonnes per month (tpm) crush-mill-float plant, which was refurbished with a new mill, concentrate tanks, and a filter press. The plant is already capable of handling the full ramp-up capacity, allowing it to expand with minimal capital outlay.
Galaxy produces a refractory gold concentrate sold directly to Ocean Partners, eliminating the need for BIOX or other complex high-capex processing routes. This low-risk sales model enables Galaxy to operate profitably and reinvest cash flow into mine development. The mine plan leverages both the Princeton and Galaxy ore bodies, with development into additional levels and ore bodies among the 21 known mineralized zones on the property. Over its history, Galaxy (formerly, the Agnes mine) has produced more than 1.3 Moz of gold, with current exploration drilling continuing to identify significant upside at depth and along strike.
Economically, Galaxy is highly accretive: at $3,000/oz gold, the operation generates an after-tax NPV5 percent of US$201 million, with life-of-mine free cash flow exceeding US$270 million on conservative assumptions. The operation has a projected all-in sustaining cost (AISC) of ~US$1,000/oz once ramp-up is complete, positioning it competitively within the global cost curve.
Summit Gold-Silver Mine and Banner Mill
The Summit mine, located in the Steeple Rock Mining District of southwestern New Mexico, is a high-grade past-producing underground operation. The New Mexico portfolio also includes the Banner mill, a 240 tpd flotation facility located 57 miles from Summit via paved highways and sealed roads. Golconda acquired the project from Waterton in 2021, along with a streamlined land package totaling ~4,000 acres of patented and unpatented claims.
Summit Mine and Banner Mills snapshot
Summit hosts a defined resource of 1.4 Moz silver and 26,000 oz gold in measured and indicated categories, plus 5.1 Moz silver and 74,000 oz gold inferred. The mine is fully permitted and is expected to restart in Q2 2026, with first concentrate production within 9 to 12 months. The restart strategy is fully funded internally from Galaxy cash flows, ensuring no dilution to shareholders.
The planned annual production profile targets ~10,000 oz gold and 444,000 oz silver at steady state, with an average AISC of US$1,600/oz gold equivalent. At $3,000/oz gold and $35/oz silver, Summit delivers an after-tax NPV5 percent of US$105 million, with cumulative free cash flow of ~US$135 million over its mine life. The project is structured to be spun out into a standalone US-only gold-silver producer by Q4 2026, broadening investor appeal and potentially unlocking a higher valuation multiple.
The Banner Mill 240-tpd flotation facility 57 miles from the Summit mine
Exploration upside at Summit is significant. The Billali Zone, northwest of the main deposit, has returned historical intercepts including 681 g/t silver and 9.38 g/t gold over 4.4 m and hosts a 1992 historical resource of 288,000 tonnes grading 121 g/t silver and 3.67 g/t gold. The nearby Mohawk Area features a 2,000 ft IP anomaly with drill intercepts including 1.5 m at 437.5 g/t silver and 9.34 g/t gold at depth. Both zones remain open and underexplored, providing clear potential to extend mine life and scale production.
Summit’s restart and planned spin-out will give Golconda a second producing asset in a Tier 1 jurisdiction, diversify its commodity mix with silver exposure, and broaden its investor base, while maintaining the company’s no-dilution philosophy.
Management Team
Ravi Sood – Chairman and CEO
Ravi Sood has more than 25 years of experience in capital markets and operations. He is the founder and former CEO of Navina Asset Management, and director of Elemental Altus Royalties and Sparq Systems. He founded and/or co-founded multiple companies in mining, energy and renewables.
Andrew Bishop – Chief Financial Officer
A chartered accountant with more than 22 years of financial and mining experience in Africa and North America, Andrew Bishop brings strong financial discipline and operational insight to Golconda. He was previously with Aureus Mining, Avesoro Resources and Golden Star.
Wayne Hatton Jones – Chief Operating Officer
Wayne Hatton Jones is a mining professional with 38 years of experience in Africa, Asia and Europe. He previously worked at Goldridge, Avocet, Randgold and Harmony. His expertise includes mine development, metallurgy and operations.
This post appeared first on investingnews.com
Copper Quest Exploration (CSE:CQX, OTCQB:IMIMF, FRA:3MX) is focused on creating shareholder value through the exploration and development of its North American critical mineral portfolio, with more than 40,000 hectares across tier-one jurisdictions in Canada and the US.
In British Columbia, the company’s assets include the Stars copper-molybdenum discovery in the Bulkley Porphyry Belt, the Stellar property with historic showings and new anomalies, an earn-in on the Rip project, a large porphyry copper-molybdenum system, and the Thane Project in the Toodoggone Belt, prospective for copper-gold-molybdenum.
The Stars project is a 9,694-hectare, road-accessible copper-molybdenum property in the prolific Bulkley Porphyry Belt, home to past producers such as Imperial Metals’ Huckleberry mine and Newmont’s Equity Silver Mine. Stars is defined by a 5 × 2.5 km annular magnetic anomaly coincident with a mineralized monzonite intrusion. Drilling in 2018 confirmed a significant porphyry system at the Tana Zone, highlighted by intercepts of 0.466 percent copper over 195.1 meters from 23 meters, including 40 meters averaging nearly 1 percent copper, and 0.20 percent copper over 396.7 meters from 28 meters. All holes to date have returned copper levels well above background, with alteration, intrusive textures, and veining typical of productive porphyry systems.
Company Highlights
- Large, Tier-one Land Position: More than 40,000 hectares across British Columbia’s Bulkley and Toodoggone Porphyry Belts, plus a newly acquired copper-gold porphyry project in Idaho, USA.
- Flagship Discovery at Stars: Drill intercepts of 0.466 percent copper over 195.1 m confirm a fertile porphyry copper-molybdenum system with over 30 km of untested intrusive contacts.
- Multiple Copper Systems: Canadian portfolio includes Stars, Stellar, Rip (earn-in up to 80 percent) and Thane, each offering district-scale potential in proven belts.
- Idaho Acquisition: The Nekash copper-gold porphyry project in Lemhi County, Idaho, is a milestone acquisition aligned with its strategy to build a portfolio of highly prospective copper assets across North America.
This Copper Quest Exploration profile is part of a paid investor education campaign.*
Click here to connect with Copper Quest Exploration (CSE:CQX) to receive an Investor Presentation
This post appeared first on investingnews.com
(TheNewswire)
Announces Expanded Drill Plan
Vancouver, British Columbia TheNewswire – September 29th, 2025 Prismo Metals Inc. (the ‘ Company ‘) (CSE: PRIZ,OTC:PMOMF) (OTCQB: PMOMF) is pleased to report that it has received final assay results including overlimits for the first batch of twenty-three samples taken at the Silver King project located in Arizona. The new assays include 619 gt Ag and 511 gt Ag for two samples taken at the Silver King shaft area, as well as 757 gt Ag, 1.5% Cu, 6.7% Pb, and 11.5% Zn for the recently encountered polymetallic vein. Preliminary assay data was described in a news release dated September 24, 2025.
‘The overlimit assays for silver highlight the high-grade nature of both the mineralization around the Silver King mine and the recently encountered polymetallic vein. The results confirm the significance of the recently discovered polymetallic vein as a new exploration target at the Silver King project,’ said Dr. Craig Gibson, Chief Exploration Officer. ‘Overlimit copper assays ranging from 1.11% to 2.43% copper for three samples from the replacement mineralization area provides encouraging data for this style of mineralization. The replacement mineralization occurs along strike with the stratigraphic horizon at the nearby Magma mine and occurs as a large body on the Black Diamond claim.’
Figure 1 . Geologic and land map of the Silver King project showing newly described polymetallic vein in magenta (Ag-Pb-Zn), copper vein in green (Cu-Ag) and stratigraphically controlled replacement mineralization in red. The strongly altered intrusion with stockwork quartz-pyrite veining is indicated by the crosshatch.
Table 1. Assay results for samples with overlimits from the Silver King project
|
Sample |
Au g/t |
Ag g/t |
Cu % |
Pb % |
Zn % |
Sb ppm |
Bi ppm |
Ba ppm |
Hg ppm |
|
New polymetallic vein |
|||||||||
|
544510 |
0.03 |
757 |
1.51 |
6.69 |
11.53 |
7788 |
0.3 |
>10000 |
12.84 |
|
Silver King mine |
|||||||||
|
544514 |
1.07 |
619 |
0.59 |
0.44 |
0.63 |
337 |
3 |
>10000 |
1.7 |
|
544517 |
0.04 |
511 |
0.09 |
0.26 |
0.43 |
377 |
0.2 |
>10000 |
15.66 |
|
Cu replacement zone |
|||||||||
|
544502 |
0.47 |
7 |
1.35 |
– |
0.02 |
0.8 |
71.8 |
30 |
|
|
544507 |
2.26 |
25 |
2.43 |
– |
0.23 |
0.4 |
33.5 |
12 |
0.01 |
|
544508 |
0.73 |
12 |
1.11 |
– |
0.28 |
0.4 |
29.1 |
12 |
0.03 |
|
544552 |
|
35 |
0.14 |
2.81 |
2.21 |
114 |
0.5 |
24 |
2.11 |
.
Figure 2 . Map showing Silver King project and nearby mineral deposits. The Silver King deposit is located 3km from the Resolution Copper deposit ( a joint venture between Rio Tinto and BHP ) and the high-grade Magma mine, a former copper and silver producer.
Drill Program Update
Prior to the discovery of the mineralized veins and porphyry related style mineralization announced recently, Prismo had planned a drill program at the historic Silver King mine for about 1,000 meters. That drill plan was designed to test the upper half of the steeply dipping pipelike Silver King mineralized body as well as potential mineralization adjacent to the dense stockwork that was the focus of historic mining.
Following the recent discoveries, Prismo is planning to add second phase of drilling for an additional 1,000 meters. This additional program will focus on the newly identified targets outside of the historic mining area, such as the polymetallic vein and the copper vein mentioned above. Drilling of a large body of replacement mineralization on the patented Black Diamond claim is also being planned and is road accessible on private ground.
Figure 3 . Cross section through the Silver King mine workings showing proposed drill holes (in black) to test the pipelike mineralized body (in red)
Click Image To View Full Size
Figure 4. Planned drill pads for the Silver King project.
‘Much of the focus of the exploration program to date has consisted of a property-wide survey of historic mines and prospects surrounding the direct Silver King workings,’ said Gordon Aldcorn, President of Prismo. ‘ This work has expanded our geological thinking and resulted in the recognition of several new types of mineralization at the project, providing additional targets for exploration. Prismo has already submitted a plan of operations for the drill program with Forest Services. Some of the drilling sites considered for the new targets will be subject to further permitting applications.’
Figure 5. Copper assays for samples taken at the Silver King project.
Figure 6. Silver assays for samples taken at the Silver King project.
Table 4. Locations for samples mentioned in the text.
|
Sample |
Location |
Type/width (m) |
E WGS84 |
N WGS84 |
|
544502 |
Black Diamond |
Grab |
492,633 |
3,687,623 |
|
544507 |
Replacement zone |
Dump |
492,054 |
3,687,431 |
|
544508 |
Replacement zone |
0.7 |
491,986 |
3,687,334 |
|
544510 |
Polymetallic vein |
Dump |
491,863 |
3,687,565 |
|
544514 |
Silver King Mine |
Dump |
491,855 |
3,687,907 |
|
544517 |
Silver King Mine |
Dump |
491,855 |
3,687,907 |
|
544552 |
Replacement zone float |
Selected |
491,928 |
3,688,043 |
Sample data previously released in News Release dated September 24, 2025.
QA/QC
Samples were analyzed by SGS, an internationally recognized analytical lab, with preparation at the Tempe, Arizona facility and analyses at the Burnaby laboratory. Prismo inserts control samples consisting of standard pulps and coarse blanks in the sample stream for QA/QC purposes and also utilizes the labs internal control samples.
Qualified Person
Dr. Craig Gibson, PhD., CPG., a Qualified Person as defined by NI-43-101 regulations and Chief Exploration Officer and a director of the Company, has reviewed and approved the technical disclosures in this news release. The historic data presented in this press release was obtained from public sources, should be considered incomplete and is not qualified under NI 43-101, but is believed to be accurate. The Company has not verified the historical data presented and it cannot be relied upon, and it is being used solely to aid in exploration plans. References to mineralization at the Magma Mine and Resolution Copper deposit are not necessarily indicative to the mineralization on the Silver King property.
About the Silver King
Discovered in 1875, the Silver King mine was one of Arizona ‘ s most important historic producers, yielding nearly 6 million ounces of silver at grades of up to 61 oz/t. The Silver King mine sits only 3 km from the main shaft of the Resolution Copper project — a joint venture between Rio Tinto and BHP and one of the world ‘ s largest unmined copper deposits with an estimated copper resource of 1.787 billion metric tonnes at an average grade of 1.5% copper (1) . The unique land position is fully surrounded by Resolution Copper ‘ s claim block, offering strategic upside. Selected samples from small-scale production in the late 1990s returned grades as high as 644 oz/t silver (18,250 g/t) and 0.53 oz/t gold (15 g/t), indicating that high-grade mineralization remains.
-
(2) Briggs, D., 2015, Superior, Arizona: An old mining camp with many lives, Ariz. Geol Survey Contributed Report CR-15-D, 13p.
About Prismo Metals Inc.
Prismo (CSE: PRIZ,OTC:PMOMF) is a mining exploration company focused on advancing its Silver King, Ripsey and Hot Breccia projects in Arizona and its Palos Verdes silver project in Mexico.
Please follow @PrismoMetals on , , , Instagram , and
Prismo Metals Inc.
1100 – 1111 Melville St., Vancouver, British Columbia V6E 3V6
Phone: (416) 361-0737
Contact:
Alain Lambert, Chief Executive Officer alain.lambert@prismometals.com
Gordon Aldcorn, President gordon.aldcorn@prismometals.com
Cautionary Note Regarding Forward-Looking Information
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as ‘ intends’ or ‘ anticipates’, or variations of such words and phrases or statements that certain actions, events or results ‘ may’, ‘ could’, ‘ should’, ‘ would’ or ‘ occur’. This information and these statements, referred to herein as ‘forward‐looking statements’, are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management’s expectations and intentions with respect to, among other things: the timing, costs and results of drilling at Silver King.
These forward‐looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things: delays in obtaining or failure to obtain appropriate funding to finance the exploration program at Silver King.
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that: the ability to raise capital to fund the drilling campaign at Silver King and the timing of such drilling campaign.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
Copyright (c) 2025 TheNewswire – All rights reserved.
News Provided by TheNewsWire via QuoteMedia
This post appeared first on investingnews.com
Locksley Resources (LKY:AU) has announced Completion of Tranche 2 Placement Issue
Download the PDF here.
This post appeared first on investingnews.com
Statistics Canada released its natural resource indicators report for the second quarter of 2025 on Thursday (September 25), which includes real gross domestic product (GDP), export and import data for Canadian resources.
According to the announcement, the real GDP for the sector decreased by 2.4 percent during the quarter, following a 1.8 percent rise in the first quarter, and outpaced the 0.4 percent decline in the broader Canadian economy.
Forestry saw the most significant decline, with real GDP falling by 4.9 percent; however, declines were felt throughout the sector. Real GDP of the energy sector dropped 2.5 percent, led by refined petroleum products decreasing 7.4 percent and electricity decreasing 3.5 percent. Minerals and mining decreased 1.2 percent, with primary metallic mineral products dropping the most in the category at 3.7 percent.
Exports declined by 6.6 percent, with forestry again registering the largest decrease at 15.5 percent, followed by energy decreasing 5.9 percent and minerals and mining dropping 4 percent. The reporting agency noted that declines coincided with increased tariffs on goods, especially steel and aluminum, entering the United States.
Meanwhile, imports increased by 6.6 percent during the quarter, following a 2.9 percent rise in the first quarter, and were mainly attributable to a 17.3 percent increase in mineral and mining imports, which included a 35.4 percent rise in metallic mineral products.
In major mining news this week, Freeport-McMoRan (NYSE:FCX) announced on Wednesday (September 24) that the closure of its Grasberg operations in Indonesia would be extended. The closure came after 800,000 metric tons of liquid materials entered its main Grasberg block cave on September 8, trapping seven workers. So far, the bodies of two workers have been recovered, and the remaining five workers are still missing.
Operations at two underground mines that were unaffected by the accident should restart mid-way through the fourth quarter, according to the company, but operations at the Grasberg block cave will not return to full production until at least 2027.
Grasberg is among the largest copper and gold mines in the world, contributing 1.7 billion pounds of copper and 1.4 million ounces of gold annually.
The announcement caused copper prices to surge by 5 percent in trading on Wednesday to US$4.84 per pound on the COMEX. Meanwhile, shares in Freeport tumbled by 16.95 percent to US$37.67 that day, and fell another 6 percent to US$35.46 on Thursday.
For more on what’s moving markets this week, check out our top market news round-up.
Markets and commodities react
Canadian equity markets were in positive territory this week by the end of trading Thursday.
The S&P/TSX Composite Index (INDEXTSI:OSPTX) set another new record high this week, climbing above the 30,000 mark for the first time on Tuesday before retreating to close Thursday at 29,731.98. The S&P/TSX Venture Composite Index (INDEXTSI:JX) performed even better, peaking at 929.64 Tuesday and ending the week at 920.18. For its part, the CSE Composite Index (CSE:CSECOMP) peaked on Wednesday at 168.38, but retreated to end Thursday at 163.31.
The gold price continued to climb this week, setting another new record, as it achieved an intraday high of US$3,788 per ounce on Tuesday. While the price retreated slightly, it was still up 1.7 percent on the week at US$3,749.21 by Thursday’s close.
The silver price saw more significant gains, rising 8.14 percent to set a year-to-date high of US$45.19 per ounce at 4 p.m. EST Thursday. The silver price is trading at 14 year highs and has been closing in on its record US$47.91 set in March 2011.
Copper had sizable gains this week on the news of the closure of Freeport’s Grasberg mine discussed above. The copper price was up 5 percent on Wednesday, but shed some gains Thursday to end the day with a weekly gain of 4.12 percent to US$4.80 per pound. The S&P Goldman Sachs Commodities Index (INDEXSP:SPGSCI) gained 1.54 percent gain to end Thursday at 558.11.
Top Canadian mining stocks this week
How did mining stocks perform against this backdrop?
Take a look at this week’s five best-performing Canadian mining stocks below.
Stocks data for this article was retrieved at 4:00 p.m. EDT on Thursday using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market caps greater than C$10 million are included. Mineral companies within the non-energy minerals, energy minerals, process industry and producer manufacturing sectors were considered.
1. Lithium Americas (TSX:LAC)
Weekly gain: 126.93 percent
Market cap: C$2.02 billion
Share price: C$9.94
Lithium Americas is a lithium development company focused on advancing its flagship Thacker Pass project in Nevada, US, which is considered a critical component of the US’s domestic lithium supply chain.
The project is a 62/38 joint venture between Lithium America and General Motors (NYSE:GM), with the latter investing US$625 million in the project last year for its stake. The companies are currently working to advance Phase 1 of the project into production, targeting a capacity of 40,000 metric tons per year of battery-quality lithium carbonate. First production is expected in Q4 2027, and GM has the right to buy all Phase 1 lithium production.
Shares in the company surged this week following news reports on the status of a US$2.26 billion loan from the US Department of Energy (DOE). On Tuesday, Reuters reported that the White House is seeking an equity stake of up to 10 percent in Lithium Americas as it renegotiates the terms of the loan. The company had planned to make its first draw from the loan this month, according to Reuters’ sources.
On Wednesday, Lithium Americas noted its rising share price in a press release about the situation. The company stated it was continuing to work with the DOE and General Motors to reach a mutually agreeable resolution regarding the first draw of the loan and potential amendments, noting discussions also included the topic of ‘corresponding consideration,’ or fair compensation, for the lithium company.
2. Scandium Canada (TSXV:SCD)
Weekly gain: 75 percent
Market cap: C$20.09 million
Share price: C$0.07
Scandium Canada is a scandium exploration company working to advance its Crater Lake scandium project in Northern Québec, Canada. The property consists of 96 contiguous claims covering an area of 47 square kilometers. To date, the company has identified five primary zones of interest at Crater Lake.
An updated mineral resource estimate released on May 12 demonstrated an indicated resource of 16.3 million metric tons of ore at an average grade of 277.9 grams per metric ton (g/t) scandium oxide, plus an inferred resource of 20.9 million metric tons at 271.7 g/t. The MRE also included grades of other rare earths at the project.
Gains in Scandium Canada’s share price began when trading opened Tuesday, the day after Reuters reported on White House plans to source scandium oxide from Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), which produces scandium oxide from its facility in Québec.
The company’s shares continued rising throughout the week. On Wednesday, Reuters reported that the Group of Seven nations is discussing instituting rare earth price floors as a means to increase rare earth production in their countries to counter China’s dominance. The considerations follow the G7 leaders’ announcement of a critical minerals action plan in June, which aims to strengthen the Western supply of critical minerals.
In company news, on Thursday Scandium Canada announced an update on advancements for its proprietary aluminum-scandium alloys, which it is aiming to commercialize.
3. Sendero Resources (TSXV:SEND)
Weekly gain: 64.58 percent
Market cap: C$14.74 million
Share price: C$0.79
Sendero Resources is a copper and gold exploration company focused on its Peñas Negras copper-gold project located along the border between Chile and Argentina in the Vicuña mining district.
Vicuña is home to several significant operations, including the Josemaria and Filo del Sol copper-gold mines, which are 50/50 joint ventures between Lundin Mining (TSX:LUN) and BHP Group (ASX:BHP,NYSE:BHP,LSE:BHP).
Peñas Negras covers an area of 211 square kilometers in Argentina’s portion of the district and bears geological similarities to the aforementioned deposits, according to Sendero.
Shares in the company were up this week, but the company has not released news since July 21, when it reported granting stock options to company employees and consultants.
4. Tincorp Metals (TSXV:TIN)
Weekly gain: 58.82 percent
Market cap: C$14.65 million
Share price: C$0.27
Tincorp Metals is a mineral exploration company with a pair of tin assets in Bolivia, and also owns a gold project in the Yukon, Canada.
Its SF Tin project covers a 2 square kilometer area in the Potosí Department of West-central Bolivia. The site hosts a historical open-pit mine and was previously explored by Rio Tinto in the 1990s. Tincorp’s 2022 exploration program encountered a highlighted intercept of 0.20 percent tin, 0.94 percent zinc, 0.17 percent lead and 24.01 g/t silver over 182.6 meters.
The company’s Porvenir project is an 11.25 square kilometer property in Western Bolivia that hosts historical open-pit and underground mining operations. Its exploration of the site in 2023 encountered a highlighted intercept with 0.65 percent tin, 1.97 percent zinc, 4 g/t silver and 0.10 percent copper over 21.2 meters.
The most recent news from Tincorp came on September 17 when it announced it had closed on a non-brokered private placement for 3 million common shares for gross proceeds of C$375,000. The company said it intends to use the net proceeds for working capital requirements and corporate purposes.
5. Wealth Minerals (TSXV:WML)
Weekly gain: 58.33 percent
Market cap: C$56.41 million
Share price: C$0.19
Wealth Minerals is a lithium exploration and development company with several Chilean lithium brine assets. Much of its news in Q2 and Q3 has been about advancing its Kuska project in the Salar de Ollagüe. The Kuska project covers 10,500 hectares in the Antofagasta region near the Bolivian border.
In May, the company created the Kuska Minerals 95/5 joint venture with the Quechua Indigenous Community of Ollagüe for the Kuska project.
A February 2024 preliminary economic assessment (PEA) for Kuska demonstrated an indicated resource of 139,000 metric tons of contained lithium from 8 million cubic meters of brine with an average grade of 175 milligrams per liter lithium. The report also demonstrated a post-tax net present value of US$1.15 billion, with an internal rate of return of 28 percent and a payback period of 6.9 years.
In September 2024, the Chilean government selected the Salar de Ollagüe to be among the first group of six salars considered for production licenses. Wealth applied for a special lithium operation contract (CEOL) for Kuska, but was denied due to not meeting the criteria of 80 percent ownership of the area designated by Chile, referred to as a polygon, that contained its concessions.
On Tuesday, the company reported that the Chilean government has reopened applications after simplifying the process for assigning a CEOL with revised requirements. During consultation with the local Indigenous communities, the ministry agreed to exclude ‘the areas of greatest cultural interest to Indigenous communities and the populated areas that were part of the polygon.’ Wealth Minerals is now verifying it meets all conditions before reapplying.
The following day, Wealth announced that it had entered into a letter agreement to acquire the past-producing Andacollo Oro Gold project in Chile. The project has historic measured and indicated resources of 2.02 million ounces of gold from 130 million metric tons with a grade of 0.48 g/t.
According to the company, it believes the acquisition is the right choice for shareholders as it expects the drivers of the current investment interest in gold, namely worry about monetary and fiscal policies, to remain unchanged.
Additionally, in connection with the transaction, the company announced it was opening a non-brokered private placement for a minimum of 41.67 million shares with the intention of raising gross proceeds of C$5 million.
FAQs for Canadian mining stocks
What is the difference between the TSX and TSXV?
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
How many mining companies are listed on the TSX and TSXV?
As of May 2025, there were 1,565 companies listed on the TSXV, 910 of which were mining companies. Comparatively, the TSX was home to 1,899 companies, with 181 of those being mining companies.
Together, the TSX and TSXV host around 40 percent of the world’s public mining companies.
How much does it cost to list on the TSXV?
There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.
The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.
These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.
How do you trade on the TSXV?
Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.
Article by Dean Belder; FAQs by Lauren Kelly.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
This post appeared first on investingnews.com
This week’s market action reflected renewed caution amid evolving signals from the US Federal Reserve, with tech stocks facing pressure from shifting interest rate expectations and renewed overvaluation concerns.
Artificial intelligence (AI) heavyweight NVIDIA (NASDAQ:NVDA) announced a US$100 billion investment partnership with OpenAI on Monday (September 22), deploying at least 10 gigawatts of NVIDIA-powered data centers.
The initial US$10 billion investment will occur once the first gigawatt is operational in late 2026. OpenAI will purchase chips from NVIDIA with this investment, and NVIDIA will receive non-controlling equity in OpenAI.
The news was initially met with optimistic market sentiment, buoying NVIDIA shares and related AI-focused tech stocks.
Similarly, data center developers experienced a surge in their stock prices due to the increasing need for AI infrastructure. This was further fueled by announcements of significant expansion projects, such as the Stargate initiative. This rally hasn’t translated to ongoing price momentum at this point.
Global markets gained ahead of Fed Chair Jerome Powell’s Tuesday (September 23) remarks, in Providence, Rhode Island, during which he offered cautious guidance and dimmed hopes for near-term rate cuts.
Meanwhile, Canada’s S&P/TSX Composite Index (INDEXTSI:OSPTX) marked a milestone, breaking 30,000.
The milestone came as Bank of Canada Governor Tiff Macklem stressed the urgent need for economic reforms to counteract risks from US trade protectionism and the US dollar’s declining safe-haven status.
A more cautious tone emerged midweek, with analysts and investors weighing potential risks around the scale of the deal, including concerns about circular financing and renewed questions about market concentration.
Oracle’s (NYSE:ORCL) issuance of US$18 billion in public debt to expand its AI data center operations fueled concerns about escalating leverage risks. Meanwhile, at the macro leve, factors such as stronger-than-expected US unemployment numbers, and geopolitical tension after US President Donald Trump’s contentious remarks at the UN General Assembly, contributed to a market pause. Major US indexes marked their third straight day of losses on Thursday (September 25), with the tech sector bearing much of the brunt.
Nasdaq-100 performance, September 19 to 26, 2025.
Chart via Nasdaq.
The market rebounded slightly on Friday (September 26) as the latest US personal consumption expenditures index data aligned with expectations, giving investors relief and a sense of continued stability.
The Nasdaq-100 (INDEXNASDAQ:NDX) and S&P 500 (INDEXSP:.INX) posted modest losses for the week, reflecting a wait-and-see mood heading into the fourth quarter.
3 stocks that moved markets this week
Apple (NASDAQ:AAPL)
- Share price performance: Shares of Apple have risen 11.45 percent since September 12 pre-orders, positively impacted by strong iPhone 17 sales exceeding expectations.
Intel (NASDAQ:INTC)
- Share price performance: Shares of Intel rose 19.65 percent this week as the legacy tech company continued to strengthen its market position.
GlobalFoundries (NASDAQ:GFS)
- News highlights: The US said it is planning to implement a 1:1 chip production rule to reduce reliance on overseas semiconductor supply. Under this proposal, chip manufacturers would be required to produce domestically as many semiconductors as their customers import from foreign suppliers. Companies failing to maintain this 1:1 domestic-to-import production ratio over time may face tariffs.
Apple, Global Foundries and Intel performance, September 23 to 26, 2025.
Chart via Google Finance.
ETF performance
Gains across AI-focused exchange-traded funds (ETFs) this week reflected ongoing investor optimism for AI innovation and infrastructure buildup. The VanEck Semiconductor ETF (NASDAQ:SMH) led the pack with a 1.74 percent increase, followed by the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ), which gained 0.85 percent, and the iShares Semiconductor ETF (NASDAQ:SOXX), which advanced by 0.82 percent.
Other market news
Tech news to watch next week
- TikTok deal developments: Watch for updates on on
going TikTok negotiations, as regulatory and geopolitical scrutiny persists. Any breakthroughs or setbacks could have significant implications for global tech and social media landscapes.
- Fermi America IPO: Fermi America, the data center developer founded by former Energy Secretary Rick Perry, prepares for a Nasdaq IPO targeting a valuation near US$13 billion on October 1. The outcome and investor reception to this IPO will serve as a bellwether for the AI infrastructure sector and data center buildout investment appetite.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
This post appeared first on investingnews.com
(TheNewswire)
Vancouver, British Columbia / September 26, 2025 ‑ TheNewswire – Harvest Gold Corporation (TSXV: HVG,OTC:HVGDF) (‘ Harvest Gold ‘ or the ‘ Company ‘) i s pleased to report on the progress of its ongoing drill program at Mosseau, its flagship property in the Urban Barry Belt in Quebec’s Abitibi region.
Rick Mark, CEO of Harvest Gold, commented: ‘The confirmation that the Kiask River Corridor extends southeast into the LaBelle property is an important step forward in our regional exploration model. Combined with the progress of our ongoing drill program, we are steadily advancing our understanding of the gold potential at Mosseau and LaBelle. We look forward to receiving our first batch of assay results next month and continuing to unlock the value of this highly prospective land package.’
DRILLING UPDATE
To date, 11 drill holes have been completed for a total of 2,191 metres. The completed holes targeted the northern portion of the property, where historical prospecting and diamond drilling work suggested strong potential and continuity of the gold mineralization (See Figure 1). Samples are sent to the lab as the logging of each hole is completed and assay results from the initial holes are expected over the next few weeks.
Drilling is now transitioning toward the central part of the property, where additional priority targets have been identified based on recent prospecting, geophysics and soil sampling.
AIRBORNE MAGNETIC SURVEY
We have now received the results of the successful high-resolution magnetic survey covering the southeastern part of the Mosseau and the adjoining LaBelle properties.
The survey results have identified and confirmed the extension of the magnetic domain hosting the Kiask River Corridor to the southeast, extending into the LaBelle property. The Kiask River Corridor can now be traced for 31 km in a northwest – southeast direction, with a width up to 2.3 km. This represents a significant development in the Company’s understanding of the structural and lithological controls on gold mineralization in the area, providing additional high-priority exploration targets for follow-up. (See Figure 2)
Looking ahead, the Company is planning a fall exploration program, which will include soil sampling and prospecting across parts of the Mosseau and LaBelle properties. These activities are designed to build on the recent magnetic survey results and further refine drill targets for future exploration campaigns.
About Harvest Gold Corporation
Harvest Gold is focused on exploring for near-surface gold deposits and copper-gold porphyry deposits in politically stable mining jurisdictions. Harvest Gold’s board of directors, management team and technical advisors have collective geological and financing experience exceeding 400 years.
Harvest Gold has three active gold projects focused in the Urban Barry area, totalling 377 claims covering 20,016.87 ha , located approximately 45-70 km west of Gold Fields Limited’s – Windfall Deposit (Figure 3).
Harvest Gold acknowledges that the Mosseau Gold Project straddles the Eeyou Istchee-James Bay and Abitibi territories. Harvest Gold is committed to developing positive and mutually beneficial relationships based on respect and transparency with local Indigenous communities.
Harvest Gold’s three properties, Mosseau, Urban-Barry and LaBelle, together cover over 50 km of favorable strike along mineralized shear zones.
Click Image To View Full Size
Figure 1: Progress of drill holes completed – Northern Target Area
Click Image To View Full Size
Figure 2: Magnetic Domain extending across the southeastern portion of Mosseau and LaBelle
Click Image To View Full Size
Figure 3: Project Location: Urban-Barry Greenstone Belt
Sampling, QAQC, and Laboratory Analysis Summary
All core logging and sampling completed by Harvest Gold as part of its diamond drilling program is subject to a strict standard for Quality Control and Quality Assurance (QAQC), which includes the insertion of certified reference materials (standards), blank materials, and field duplicate analysis. NQ-diameter sawed half-core samples from the drilling program at Swanson were securely sent by Company geologists to AGAT Laboratories Ltd. (AGAT), with sample preparation in Val-d’Or, Québec and analysis in Thunder Bay, Ontario, where samples were processed for gold analysis by 50-gram fire assay with an atomic absorption finish. Samples from selected holes were securely sent to AGAT in Calgary, Alberta, for multi-element analysis (including silver) by inductively coupled plasma (ICP) method with a four-acid digestion. AGAT sample preparation and laboratory analysis procedures conform to requirements of ISO/IEC Standard 17025 guidelines and meet the requirements under NI 43-101 and CIM best practice guidelines. AGAT is independent of LaFleur Minerals.
Qualified Person Statement
All scientific and technical information in this news release has been prepared and approved by Louis Martin, P.Geo., Technical Advisor to the Company and considered a Qualified Person for the purposes of NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark
President and CEO
Harvest Gold Corporation
For more information please contact:
Rick Mark or Jan Urata
@ 604.737.2303 or info@harvestgoldcorp.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This news release includes certain statements that may be deemed ‘forward looking statements’. All statements in this news release, other than statements of historical facts, that address events or developments that Harvest Gold expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words ‘expects’, ‘plans’, ‘anticipates’, ‘believes’, ‘intends’, ‘estimates’, ‘projects’, ‘potential’ and similar expressions, or that events or conditions ‘will’, ‘would’, ‘may’, ‘could’ or ‘should’ occur.
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Copyright (c) 2025 TheNewswire – All rights reserved.
News Provided by TheNewsWire via QuoteMedia
This post appeared first on investingnews.com
Fortune Bay Corp. (TSXV: FOR,OTC:FTBYF) (FWB: 5QN) (OTCQB: FTBYF) (‘Fortune Bay’ or the ‘Company’) is pleased to announce that summer drilling has commenced at its Murmac Uranium Project (‘Murmac’ or the ‘Project’), located in northern Saskatchewan near Uranium City . A limited suite of high priority targets has been selected for testing.
Exploration work at Murmac is being funded by Aero Energy Limited (TSXV: AERO) (OTC Pink: AAUGF) (FSE: UU3) (‘Aero’), and is being operated by Fortune Bay, under an Option Agreement that was executed on December 15, 2023 .
Gareth Garlick , VP Technical Services of Fortune Bay, commented, ‘ This drilling program represents an excellent opportunity to test high-priority uranium targets with strong geophysical signatures in a proven district. The current drill program has been carefully designed to evaluate structural and conductive settings that have historically delivered uranium mineralization in the Athabasca Basin margin. By capitalizing on shared mobilization and operational efficiencies, we are able to advance exploration in a technically rigorous and cost-effective manner.’ Dale Verran , CEO of Fortune Bay, added, ‘Our partner-funded exploration at Murmac demonstrates how we can unlock value from our uranium portfolio on a non-dilutive basis for shareholders. This strategy allows us to preserve capital and maintain focus on advancing our 100%-owned gold assets, while retaining significant exposure to upside from uranium discoveries.’
Drill Targets
Target selection has been based on airborne electromagnetic and ground gravity survey results, targeting features along buried basement-hosted conductive graphitic units at their intersection with known mineralized cross faults identified during historical and current prospecting activities, including spectrometer surveying and geochemical sampling. Drilling will focus on the northern end of the Armbruster Conductor, which the Company has not yet drill tested. This program has been planned at short notice to benefit from significant cost savings related to the presence of another exploration group in Uranium City carrying out a separate drill program using the same drill contractor. Shared mobilization and operational costs are allowing the Company to cost effectively test three selected high priority targets (Figure 1) in the summer window.
- A19: Low amplitude EM high target on a conductor inflection, with an associated diffuse gravity low anomaly. The targeted graphitic horizon underlies a small lake, at the location of an intersection of the Armbruster Conductor with a major conductor-parallel fault.
- A18: Low amplitude EM high feature coincident with a high priority gravity low target at a location where the Armbruster Conductor is apparently terminated by a cross-cutting mineralized fault.
- A9: A broad EM high anomaly on the edge of a conductor termination, with a small down-dip gravity low. This target is aimed a structural confluence of several known mineralized cross-faults with the Armbruster Conductor.
Technical Disclosure
Further details regarding the historical exploration/drilling and exploration results noted in this news release can be found within the Saskatchewan Mineral Assessment Database (SMAD) and the Saskatchewan Mineral Deposit Index (SMDI). Fortune Bay has verified several of these occurrences through field prospecting and sampling, however there is a risk that any future confirmation work and exploration may produce results that substantially differ from the unverified historical results. Historical drill hole locations, captured from georeferenced assessment report maps, are subject to uncertainty (considered accurate to +/-50 meters. The Company considers these unverified historical results relevant to assess the mineralization and economic potential of the property. The historical information referenced derives from SMAD references 74N07-0011, 74N07-0173 and 74N07-0277.
Qualified Person
The technical and scientific information in this news release has been reviewed and approved by Gareth Garlick , P.Geo., Technical Director of the Company, who is a Qualified Person as defined by NI 43-101. Mr. Garlick is an employee of Fortune Bay and is not independent of the Company under NI 43-101.
About Fortune Bay
Fortune Bay Corp. (TSXV:FOR,OTC:FTBYF; FWB:5QN; OTCQB:FTBYF) is a gold exploration and development company advancing high-potential assets in Canada and Mexico. With a strategy focused on discovery, resource growth and early-stage development, the Company targets value creation at the steepest part of the Value Creation Curve—prior to the capital-intensive build phase. Its portfolio includes the development-ready Goldfields Project in Saskatchewan , the resource-expansion Poma Rosa Project in Mexico , and an optioned uranium portfolio in the Athabasca Basin providing non-dilutive capital and upside exposure. Backed by a technically proven team and tight capital structure, Fortune Bay is positioned for multiple near-term catalysts. For more information, visit www.fortunebaycorp.com or contact info@fortunebaycorp.com .
On behalf of Fortune Bay Corp.
‘Dale Verran’
Chief Executive Officer
902-334-1919
Cautionary Statement Regarding Forward-Looking Information
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. Words such as ‘expects’, ‘aims’, ‘anticipates’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, ‘continues’, ‘may’, variations of such words, and similar expressions and references to future periods, are intended to identify such forward-looking statements.
Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals, intentions or future plans, statements, exploration results, potential mineralization, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify targets or mineralization, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, inability to reach access agreements with other Project communities, amendments to applicable mining laws, uncertainties relating to the availability and costs of financing or partnerships needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. For more information on Fortune Bay, readers should refer to Fortune Bay’s website at www.fortunebaycorp.com .
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Fortune Bay Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2025/26/c9916.html
News Provided by Canada Newswire via QuoteMedia
This post appeared first on investingnews.com
It can be tempting for investors to focus on specific assets or strategies when building an investment portfolio, but those taking a long-term approach will want to diversify in order to balance out potential portfolio instability.
Gold has a reputation for being a reliable diversifier because it can act as a hedge against various risks.
For those unfamiliar with the term, put simply, a hedge is an investment position whose main purpose is to offset potential losses or gains related to another asset. But how does that work, and what’s the best way to get exposure to gold as a hedge?
Read on for a look at how this strategy works and why it’s worth considering.
In this article
Why use gold investments as a hedge?
Gold is looked at as a hedge investment in many different situations. The first and most popular use of gold as a source of protection is as a hedge against the decline of a currency, typically the US dollar. When the dollar slips, the yellow metal not only becomes less expensive to hold, but also tends to rise in value.
“Gold’s relationship with the dollar is determined by US-based gold supply and demand, as well as by the status of the dollar as the reserve currency globally,” states the World Gold Council. “Historically, a weak dollar tends to provide a stronger boost to gold’s performance than the drag created by a strong dollar.”
By holding the precious metal as a diversification tool when the economy negatively affects currencies, investors can incur gains from the metal’s increased value.
The second reason why gold makes a good hedge is that it can act as a defense against inflation. When the cost of living begins to rise, the stock market often falls. In those cases, investors with assets that are negatively affected by a volatile market need something to balance that out — that’s where gold comes in.
Over the past 50 years, investors have seen gold make huge gains when the stock market is crumbling. As Investopedia points out, “This is because, when fiat currency loses its purchasing power to inflation, gold tends to be priced in those currency units and thus tends to arise along with everything else.”
Interestingly, the yellow metal has also been used as a hedge against deflation, which happens when prices drop, the economy is in a downturn and excessive debt looms. This situation has not occurred since the Great Depression of the 1930s, and to a much smaller degree after the 2008 financial crisis.
Market participants may decide to hoard cash in this type of scenario, and the safest place to hold cash is in gold. Again, while this situation is not commonplace, many investors keep the yellow metal in their portfolios on the off chance that another massive period of deflation will take place.
Finally, gold can be used as a general portfolio hedge when market participants hold investments that are not related to one another. Since the precious metal generally has a negative correlation to stocks, bonds and other financial instruments, investors often diversify by creating a portfolio that combines gold with stocks and bonds in order to reduce both volatility and risk.
While it is true that the yellow metal goes through times of volatility, it has always maintained its value over the long term, making it a steady addition to investors’ portfolios.
Those who have decided to add gold to their portfolio as a hedge have a variety of options. Here’s an overview of three of the most popular ways of getting exposure to gold.
1. How to use physical gold as a hedge
Investors can get the most direct exposure to gold by buying physical gold, and holding the physical metal also adds diversification from digital assets. Physical gold can be purchased through government mints, private mints, precious metals dealers and even jewelry stores.
Physical gold investors should generally focus on 0.999 fine items, as these will also be the easiest to sell. The majority of gold bullion products fit this description.
One of the most common choices for investors are gold bullion coins, such as the South African Krugerrand or the Canadian Gold Maple Leaf, which are 0.999 fine. The American Gold Eagle is reputable and popular as well, but has a lower purity at 91.67 percent. Another option is gold rounds, which are similar to coins, but are not legal tender, making them often slightly cheaper.
Gold bars are another popular option, and because they come in a variety of sizes, they can accommodate a range of investors. Large investments may best be made in bars since bigger sizes are available. Further, it is often easier to manage several large products than it is to manage an array of smaller gold items.
When deciding on what to purchase, gold buyers will want to keep their plans for selling in mind. For example, large products may be more difficult and thus slower to sell, meaning it could be harder to take advantage of gold price movements or convert it to cash in an emergency. Individuals making ongoing or significant investments may therefore want to consider purchasing gold in various weights to give them versatility.
Click here to learn more about physical gold as an investment.
Click here to learn what moves the gold price and the highest price for gold is.
2. How to use gold ETFs as a hedge
One of the common ways investors add gold as a hedge is through investing in a gold exchange-traded fund (ETF), which trade on a stock exchange just like equities. There are several kinds of gold ETFs, offering exposure to different aspects of the gold market. Gold ETFs can offer investors access to gold price movements by holding physical gold or the gold futures market through holding futures contracts. There are also gold ETFs focused on gold mining stocks, providing a more stable alternative to investing in individual gold stocks.
It is important to keep in mind that investors who own gold ETFs do not own any physical gold — even gold ETFs that track physical gold generally cannot be redeemed for it, with the exception of the Vaneck Merk Gold ETF (ARCA:OUNZ). Nonetheless, gold ETFs are a good option for getting exposure to the precious metal without personally trading physical gold, gold futures or gold stocks.
Click here for a list of five biggest gold ETFs and more information on gold ETFs.
Click here for a list of top ASX-listed gold ETFs.
3. How to use gold futures as a hedge
A futures contract is an agreement to buy or sell gold on a date in the future for a price determined when the contract is initiated. In a gold futures transaction, two parties agree on a price, the amount of gold being purchased and the future delivery month.
The futures market is often referred to as an arena for paper trading. The bulk of the activity is just that, as metal is not actually exchanged and settlements are made in cash. It allows investors to buy or sell gold as they want without management fees, and taxes are split between short-term and long-term capital gains.
In some cases, the futures market can be an arena for purchasing physical gold. However, obtaining gold through the futures market requires a large investment and involves a list of additional costs. The process can be complicated, cumbersome and lengthy, which is why actually buying physical gold through futures is considered best for highly experienced market participants.
Click here to learn more about gold futures.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
This post appeared first on investingnews.com