Gold bull market, impact on valuations for gold assets: Part 1
June 2026
Gold’s safe-haven demand has driven higher prices, boosting mining profits and valuations. Elevated multiples signal strong market activity, but buyers must remain disciplined as risks rise if the cycle peaks.
Thank you for reading
Gold prices have risen strongly as investors have increasingly reinforced its status as the world’s leading safe-haven asset during global trade and economic uncertainty. This strength has been supported by inflation concerns, interest rate and currency movements, geopolitical tensions, weakening confidence in the USD and continued demand from central banks. Supply-side pressures, including mining and production challenges, have also helped sustain higher prices.
For gold mining companies, elevated gold prices have significantly improved profitability by increasing revenue per ounce and widening margins. This stronger cash generation has encouraged greater exploration spending and supported efforts to expand production, including advancing existing operations and reconsidering previously uneconomic gold assets. As a result, the sector has become more active and better positioned to pursue growth and consolidation driven by higher resource multiples.
Based on our analysis of 100 plus global gold asset transactions and the enterprise values of ~50 listed gold mining companies, the chart illustrates how implied in-ground valuation multiples (USD/oz) increase with project maturity. Recent transactions completed in a high gold price environment sit materially above long-term historical ranges.
Is it time to buy or sell gold mineral assets at today’s prices?
Gold prices have remained elevated for the past 2 to 3 years, and transaction evidence suggests this strength is now clearly reflected in valuation multiples. Indicatively, resource multiples that historically traded around USD 20/oz–USD 50/oz in lower price cycles are now commonly seen at ~USD 100/oz–USD 160/oz, while reserve multiples have shifted from ~USD 70/oz–USD 180/oz to USD200/oz–USD 400/oz in recent transactions covering the last 18 months as illustrated in the table below.
Gold prices have remained elevated for the past 2 to 3 years
The Zijin–Allied Gold deal in Canada sits toward the upper end of this curve, underscoring how competitive the market for quality ounces has become.
For those who own assets, the key question is whether these valuations already price in peak conditions. For those looking to buy, discipline is critical: underwriting high long-term prices and expansionary multiples increases the risk of value erosion if the cycle turns. The strategic lens therefore shifts from “what is gold worth?” to “where are we on the gold valuation curve?”
To benefit from this environment, gold companies are increasing exploration budgets, investing in new projects and adopting technologies that improve efficiency and reduce costs. Many are also diversifying geographically or across related resources, forming close collaborations to share risk and knowledge and strengthening environmental, social and governance (ESG) practices and sustainable mining practices to attract investment and maintain operating licences.
The strategic lens therefore shifts from “what is gold worth?” to “where are we on the gold valuation curve?
