While gold prices have surged to record highs in Q2 2025, buoyed by geopolitical tensions, the sweet weather hasn’t extended to junior gold explorers. Spot prices hit $5,041.50 per ounce early in the quarter, and as of July 1, ABC Bullion reported gold at $5,037.68 per ounce. Despite these ‘happy place’ prices, a cultural shift and investor caution have left junior companies in the cold, according to Cassiar Gold CEO Marco Roque. Cassiar Gold is a mineral exploration company focused on exploring and developing its gold projects in British Columbia, Canada. Hamelin Gold Managing Director Peter Bewick notes that junior explorers are ‘yet to have their moment in the sun’.
Several factors contribute to this disconnect. Tom Winmill, Midas Discovery Fund Portfolio Manager, describes a cautious market due to past experiences with spiking gold prices. The rise of crypto, a surge in retail investors, and the mainstreaming of ESG investing add complexity. This is reflected in the stagnant share prices of junior explorers like Hamelin Gold and Renforth Resources. North Stawell Minerals Executive Director Campbell Olsen highlights a disconnect between rising demand and fewer large-scale gold discoveries. North Stawell Minerals is focused on discovering and developing gold resources in the Stawell region of Victoria, Australia.
Despite these challenges, some industry figures remain optimistic. Antipa Minerals CEO Roger Mason emphasizes the critical role of explorers in sustaining the gold industry’s growth, as major producers grapple with declining reserve bases. Bewick believes a new discovery by a junior explorer could provide a confidence boost and catalyse a boom for the sector. Rua Gold CEO Robert Eckford notes that gold producer valuations have risen substantially, while Borealis Mining CEO Kelly Malcom describes current production activity as a ‘1980s US gold story’.
However, even producers face headwinds, including supply chain delays, rising wages, and increased contractor costs. Midas Discovery Fund’s Winmill adds that corporate costs often rise with warrant conversion and compensation bonuses, while Canaccord’s Tim McCormack notes that inflation in the gold sector has plateaued but risks remain. Despite these challenges, there’s hope that junior explorers will eventually see renewed interest, particularly if they can make significant new discoveries.
