In 2024, gold, silver, uranium, copper, and lithium companies completed a total of 1,786 financings. Here’s where things get very interesting...
55% were for gold projects alone, leaving the remaining 45% spread among the other metals. That’s right, the gold sector is very crowded, and the competition for investor capital and mindshare is intense.
Despite this flood of financings, gold equities prices haven’t caught up to the metal’s record-setting performance. Deals keep getting done, and companies keep getting funded, but demand hasn’t reached the fever pitch that would trigger a spike in share prices.
One factor could be the sheer number of investment choices, it’s a very saturated space, in addition to the growth of gold ETFs, which provide an easy entry point for generalist investors.
Let’s put it this way, if we lazily apply an “adjusted Pareto law,” maybe 5% of these gold companies are worth investing in, which makes it a real challenge for investors to pick the right ones. So if you're an investor it’s just easier to go the ETF route.
Meanwhile, shares in other metals equities can spike more dramatically because there are simply fewer places to put your money. If sentiment swings in favor of uranium, silver, copper, or lithium, those stocks tend to move with real velocity, creating a classic “rising tide” dynamic.
For example, in the U.S. focused uranium deals, especially relevant given President Trump’s recent emphasis on domestic energy, there may be only about 5 solid options available. That’s right, only 5 options to choose from. Or better yet you can go for all 5!
If you’re on the issuer side, remember you’re up against intense competition, so plan your marketing accordingly to stand out (more on this in a future post). For investors, there’s been positive momentum in flow of capital to the space and a list of proven individual winners to invest with confidence.
And those who say the metals markets are “dead” are just talking about their own portfolios. What they’re really saying is that they missed out on the winners!
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The below slide and data are from PrivatePlacements.com and were prepared for my presentation at last week's AME Roundup. I'm going to be sharing more data and takeaways in the coming weeks. Stay tuned!
