RE:Rate Hikes ? Gold still on track to hit $3,000 as U.S. debt burden grows - Maison Placements Canada’s John Ing | Kitco News Excerpts:
In his latest gold commentary, John Ing, President and Chief Executive Officer of Maison Placements Canada Inc., reaffirmed his price target, expecting the precious metal to rise to $3,000 an ounce within the next 18 months.
Although the Federal Reserve’s aggressive monetary policy has increased gold’s opportunity costs as a non-yielding asset, Ing said that the government’s burgeoning debt is overshadowing current monetary policy.
“More than anything, gold’s push through $2,400/oz was due to rising U.S. debt, which caused money to flow into gold for defensive purposes,” he said in the report published last week.
Along with his bullish outlook on gold, Ing said he sees potential and value within the mining sector, even as costs increase.
“The group is undervalued on multiple fundamentals (market cap/reserves, earnings, cash flow and balance sheets) particularly against the overvalued S&P 500,” he said. “We continue to like the senior producers like Barrick, and Agnico-Eagle. Developers are the next group, bringing on mines over the next couple years like B2Gold, Endeavour Mining, McEwen Mining and Eldorado. There are many explorers that are very cheap.