Gold’s pullback is a reset, not the end of the metals bull market - American Pacific CEO

“Despite the price volatility, the world is still going to need more copper, and gold remains a safe-haven asset,” said Warwick Smith, CEO of American Pacific Mining, in an interview with Kitco News. “Nothing ever just goes straight up. But it doesn't change the long-term picture.”

Gold’s explosive rally from the second half of 2025 through last month triggered significant momentum in the mining sector. Over the last 12 months, the VanEck Gold Miners ETF has rallied 140%, compared to gold’s 64% gain.

Smith acknowledged some psychological damage in the marketplace inflicted by the speed of the reversal; however, he added that, over the long term, there is still plenty of value in the equity space.

“Six months ago, we were trying to get comfortable with $3,000 gold,” he said. “Now gold is near $5,000 and mining stocks are being cut in half. That kind of swing shakes confidence,” he said.

Despite the correction, Smith said he does not see any change in gold’s macro role. Global fragmentation, protectionism, and geopolitical tension continue to underpin demand for monetary metals, he said, adding that the January selloff was more about positioning and overextension than a meaningful shift in demand.

“Nothing fundamentally changed,” Smith said. “There’s been no massive discovery that suddenly alters the supply curve.”

Copper: The Story Hasn’t Changed

If gold and silver are navigating volatility, copper remains, in Smith’s view, the most compelling long-term story in the metals complex.

“Copper is absolutely the metal to watch. The world simply doesn’t have enough of it,” he said. “I still believe this is the start of a true bull market in metals. And copper is at the center of it.”

Smith said he does not expect the world’s copper deficit to disappear anytime soon, as electrification, defense spending, grid expansion, and the reshoring of supply chains continue to drive demand for more copper than current production pipelines can deliver.

“We’re all learning more about how much copper is going to be required,” Smith said. “And we still haven’t discovered the mines that will supply it.”

Permitting timelines remain measured in decades, he noted. Grades at existing mines are declining. Few major discoveries have emerged in recent years.

“There’s been no new discovery that changes the curve,” Smith said. “Those challenges are still ahead of us.”

Volatility vs. Opportunity

The January correction has exposed a divide between institutional traders and retail investors. Hedge funds thrive in volatility; retail investors often struggle with it.

For long-term investors, Smith’s advice is straightforward: be highly selective, focus on companies with strong projects and either cash on hand or reliable access to capital, and maintain a long-term perspective on the metals cycle.

He also said investors should not hesitate to take profits when markets turn euphoric.

“No one ever lost money taking a profit,” he said. “When things get euphoric, sell a little. When you get these big corrections and you believe in the long term, that’s when you look to reinvest.”

Smith noted that, despite the selloff, major producers remain in strong financial shape.

“The balance sheets of mid-tier and major miners are pristine compared to the last cycle,” he said. “They’re printing cash.”

That strength could ultimately flow downstream to developers and explorers—though Smith acknowledges that junior equities have yet to experience the full retail rush seen in past cycles. However, he said there is still time, adding that the current correction resembles a mid-cycle reset.

Smith said that the January pullback may have damaged sentiment—but it has not diminished the world’s need for copper, nor gold’s role in a volatile geopolitical era.

“There will be painful pullbacks along the way,” he said. “But if the long-term thesis is that the world needs a lot more copper—and I believe it does—then this isn’t the end of the story. It’s part of it.”