Gold Prices Soar: This Pre-discovery Exploration Company Could Offer Huge Potential For Investors

This is sponsored content.  Barchart is not endorsing the websites or products set forth below.

 Click here to read Austin Gold's latest update on their exploration activities and stay informed about ongoing AUST projects and potential growth opportunities.

The price of gold recently passed $2,600/oz for the first time ever and has risen roughly 28% from the start of the year – significantly outpacing the S&P 500. Investment experts have attributed gold’s strong performance to increased geopolitical instability and the Federal Reserve’s decision to lower interest rates.

Investors tend to invest in gold during periods of economic uncertainty, which has been abundant over the past few years. Abroad, increasingly heated conflicts in the Middle East and Europe continue to rage with little sign of reaching a resolution. Domestically, one of America’s presidential candidates has faced two assassination attempts which has made the country even more tense as the election approaches.

The Federal Reserve also recently decided to cut interest rates by half a percentage point, which makes gold look even more attractive to investors. Decreased rates decrease the returns of interest-yielding investments like bonds, treasuries, or savings accounts – which make gold look more attractive in comparison. 

With a heated election and more projected interest rate cuts on the horizon, analysts at JPMorgan recently forecasted that they believe gold will continue to rally into 2025, with a target of $2,850.

Time to invest in gold stocks?

In addition to price appreciation, buying gold can help you diversify your portfolio and mitigate any market volatility that may occur during the upcoming presidential election. Investing in gold stocks can also be a great way to take advantage of any potential upward momentum for the price of gold.

The most common way to invest in gold is typically to purchase physical gold or buy shares of gold stocks or exchange-traded funds (ETFs). Of these options, many investors choose to own gold stocks as they are easier to liquidate at short notice and do not require costly storage or custodian fees that are associated with buying physical gold. 

Investing in gold stocks – especially pre-discovery gold exploration stocks – can also help investors potentially earn a higher return than owning physical gold. This is because pre-discovery gold stocks give investors the opportunity to invest in a gold exploration company before a major discovery is made.

Investing in gold exploration stocks

Pre-discovery exploration stocks are companies that are in the process of exploring for gold or other natural resource deposits. Gold exploration stocks are attractive to investors for a number of reasons:

• High potential returns: The value of a pre-discovery exploration stock can skyrocket quickly if that company successfully discovers a significant gold deposit.
• Exposure to gold market: Investing in pre-discovery exploration companies may provide exposure to the gold market without having to directly purchase gold itself, which is often a cumbersome process with extensive fees.
• Early-stage investment: Investing in pre-discovery exploration companies allows retail investors an opportunity to get in on the ground floor of a potentially lucrative venture.
• Diversification: Gold stocks can be a good diversifier for a portfolio, as their prices often move inversely to other stocks and bonds.

If you are interested in increasing your portfolio’s exposure to gold then you may want to consider buying shares of a pre-discovery gold company. Doing so adds risk but may help you potentially achieve a higher overall return when compared to investing in traditional gold stocks, while also avoiding storage fees associated with buying physical gold.

Right now, there is only one pre-discovery gold company that’s listed on the NYSE American: Austin Gold Corp. (NYSE: AUST).

Meet Austin Gold: The only pre-discovery gold exploration stock listed on the NYSE American

Austin Gold is an experienced, well-funded pre-discovery gold exploration company that recently received exciting news at one of its three exploration sites, Stockade Mountain.

Stockade Mountain, Oregon, is historically known for having high-grade gold in the stockwork system. The area was drilled frequently in the 1980s and 1990s. But Austin Gold is reexploring this mineral-rich area by drilling to uncover high-grade veins that could be lying below the shallower stockwork mineralization. To test this hypothesis, Austin Gold recently drilled three holes in Stockade Mountain. Based on the results, it has become clear that there is the potential for significant gold mineralization within the project area.

What’s even better is that Austin Gold is incredibly well-funded, which is rare for pre-discovery exploration companies. The company currently has $7.4 million in current assets and just $87,000 in current liabilities, per its unaudited Q2 2024 financial statements. In other words, the company has plenty of cash to fund an extensive exploration of Stockade Mountain.

The team behind Austin Gold also has a lengthy, experienced reputation and has been involved in the following successful mining projects:

• Pretium Resources (which was acquired by Newcrest Mining)
• Silver Standard Resources (now SSR Mining (SSRM))
• Uranerz Energy (which was acquired by Energy Fuels (UUUU))

Austin Gold’s stock presents a rare opportunity for investors interested in diversifying their portfolios. Instead of owning gold and waiting for the price to increase, you could actually participate in the potential discovery of a significant gold deposit – which could yield significantly higher returns.  

Learn More About Austin Gold (NYSE: AUST)

Disclaimers: This presentation has been created by Barchart Impact, who is responsible for the distribution of this content. This presentation should be considered and explicitly regarded as sponsored content. Barchart Impact has been compensated up to thirty four thousand dollars to create this content. Accordingly, this content may be used and syndicated beyond the channels used by Barchart Impact. This disclaimer and the link to the broader disclosures must be part of all reproductions. That compensation creates a conflict of interest because the content presented may only provide a favorable viewpoint of the company featured. The information in this article is not intended to be, nor does it constitute, investment advice or recommendations. Never take opinions, articles presented, interviews, or content provided as the sole reason to invest in any featured company. Investors must always perform their own due diligence before investing in any publicly traded company and understand the risks involved, including losing their entire investment. 

The above is sponsored content. Barchart was paid up to thirty-four thousand dollars for placement and promotion of the content on this site and other forms of public distribution covering the period of September - November 2024.  For more information please view the Barchart Disclosure Policy here.