Gold price hits $3300, here are 4 facts gold investors need to know.

On the morning of April 16th, the international gold price hit a new high. Just this week, both ANZ Bank and Goldman Sachs have significantly raised their price forecasts. Since April, at least 4 Wall Street institutions have raised their gold price forecasts. Since the beginning of the year, the price of gold has increased by more than 24%, far surpassing the gains of major international stock indices. At the time of writing, spot gold in London has surpassed $3275 per ounce. According to a recent survey by Bank of America, 49% of respondents believe that the most crowded trade in the market right now is "long gold". This week, Goldman Sachs's latest report stated that the US economy is approaching zero growth this year, and inflation expectations have been significantly raised to around 3.5%. Goldman also believes that the dollar is currently overvalued by about 20%. Tectonic Metals, a company focused on metal exploration, stated that investors should not ignore four key facts about gold investment after the significant rise in gold prices. 1. Exploration company stock prices significantly lag behind: Despite the rise in stock prices of major gold producers, exploration companies (typically referred to as junior companies) are still being overlooked. The gap between spot gold prices and the Canadian Venture Exchange (TSXV) has reached its highest level in years, and the TSXV is the main listing venue for junior mining companies. 2. Gold to stock ratio continues to rise: The gold to stock ratio (i.e. gold relative to the value of an index or company) continued to rise in 2025. The gap between gold and the Canadian TSX Venture Composite Index is widening. The TSX Venture Composite Index in Canada tracks the performance of junior companies usually in the early stages of development. 3. Gold reserve crisis imminent: Due to the continuous rise in gold prices, major gold producers have increased their merger and acquisition budgets. These M&A projects increase the market's gold supply but have a negative impact on gold reserves and the free cash flow of gold producers. In order to avoid a reserve crisis, major producers are expected to intensify exploration efforts. Tectonic Metals stated that investors should focus on trading world-class assets. These assets should have a gold production of at least 500,000 ounces per year, a mine life of at least 10 years, be located in countries rated on average A or B by Moody's, S&P or Fitch, and have an average all-in sustaining cost (AISC) per ounce of gold in the lower half of the industry cost curve. 4. Royalty companies outperform gold and gold stocks: Gold royalty companies provide funding for gold mines worldwide. Rising inflation weakens the profits of gold mining companies, but royalty companies remain unaffected due to their unique structure and can provide stronger returns in the short and long term. For example, blue-chip Franco-Nevada Corporation in the gold royalty sector has seen a 47% increase in the past year, while spot gold in London has only increased by 35%. Gold royalty companies also provide higher stability in dividend payments compared to gold mining companies. Dividend payments from gold mining companies are highly volatile and can be significantly adjusted based on gold prices. While this provides high dividend payments when gold prices rise, it can also result in substantial dividend cuts when gold prices fall. This article was reprinted from "Wandai Stocks", GMTEight Editor: Jiang Yuanhua.