There is a lack of big discoveries in the mining sector, said Willem Middelkoop, founder and CEO of Commodity Discovery Fund.

Last week, Middelkoop spoke to Kitco Mining at the Gold Forum Americas/XPL-DEV 2024 in Colorado.

Middelkoop expressed optimism that the gold price could reach $3,000 before the end of the year, potentially marking the start of a new bull market.

"Gold could be on the verge of a breakout. This could be a violent move," Middelkoop said.

He cited key factors driving the rise in gold prices, including currency debasement, a shortage of significant new discoveries, and heightened geopolitical tensions between the West and the rest of the world.

"That's why we see many people fleeing towards gold—even central banks. And I think the last point is the most important reason for this rise in the gold price," he added.

Middelkoop explained that bull markets in gold typically begin with the major producers and royalty companies gaining momentum, followed by intermediates and eventually juniors. However, he noted that junior mining companies have remained flat this year despite the increase in gold prices.

Despite this price surge, Middelkoop expressed disappointment in the industry's lack of major new gold discoveries. He observed that many companies are simply rebranding old projects rather than finding new deposits, which underscores the need for mergers and acquisitions (M&A) to drive growth within the sector.

Coverage of the Gold Forum Americas/XPL-DEV 2024 is sponsored by Metalla Royalty.

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

West versus the rest of the world - Willem Middelkoop on the chief reason why gold is spiking

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