John Ing pegs gold at $510 this yearKinross Gold Corp (2) (C-K) - In the News
Globe says Barrick, rivals see Ing of strong faith
2005-11-22 08:37 ET - In the News
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From In the News (C-ABX) Barrick Gold Corp
The Globe and Mail reports in its Tuesday, Nov. 22, edition that gold prices for December delivery climbed as high as $490.50 an ounce on the New York Mercantile Exchange -- the highest level in just under 18 years -- before finishing the session at $489.50, up $3.30 (all figures U.S.). The Globe's John Partridge writes that the S&P/TSX gold index also climbed gaining 6.41 points to 235.58, its highest since Jan. 5, 2004. As this was unfolding, UBS AG boosted its price forecast for 2005 to $500 an ounce from $455. Maison Placements president John Ing pegs gold at $510 an ounce for this year. For 2006 Mr. Ing forecasts gold at $700. Scotia Capital analyst Michael Durose, however, expects gold will average $450 an ounce next year and $475 in 2007. Mr. Ing is betting on inflation and a decline in production in South Africa to push gold prices higher. South Africa will product about 300 tonnes of gold for all of 205, down from 346 tonnes last year, an "80-year low," says Mr. Ing. Also, he believes a that a swing is occurring from financial assets to hard assets. He says real estate and base metal prices are at "all at highs or near highs." He predicts that "gold's going to have its day."