But there are other factors affecting gold prices, according to Pereira. “We’ve seen investors going back into the ETFs, we’ve seen central banks in China, Russia, Turkey, and India all increasing their purchases,” he explained.

“Over the course of the next year, we’d expect to see gold continue to rise,” Pereira said. Within the logistics of supply and demand, he noted that although the market has been in balance for some time, the future includes long-term supply increases.

The IFC’s primary objective is to work collaboratively with the private sector to assist developing countries expand their mining industries. Most recently, it completed the Sangaredi project in Guinea, which Pereira said had an immediate impact on the local community, creating jobs and stimulating the environment.

“The employment is about 750 people, but if you look at a factor of 20 which is typical in developing countries, that’s probably going to affect 14,000 people in terms of jobs and opportunities and wealth creation,” he said.

Past experiences with foreign investment in developing countries’ mining industries have proven challenging. Pereira stated that the key to navigating the existing obstacles involves a two-fold solution. When dealing with governments, he said, it is important to ensure compliance with the mining code. When dealing with local communities, he spoke of the significance of securing the social license to operate.