Post by
auburn2 on Nov 26, 2017 8:06am
McEwan As Bullish As Ever
The Globe and Mail reports in its Thursday, Nov. 23, edition that gold has bottomed out and may be set to soar, according to one of the industry's biggest bulls. A Bloomberg dispatch to The Globe reports that prices could surpass $5,000 (U.S.) an ounce in five years, from about $1,280 (U.S.) now, as investors seek returns amid a prolonged period of cheap money and use the metal as a haven from geopolitical and financial risk, McEwen Mining chief executive officer Rob McEwen said. If that happens, "there is going to be a tsunami of money looking for a place to go," he said in an interview from an industry conference in San Francisco. Lower-for-longer interest rates have fuelled bubbles in the stock, real estate and even art markets as investors seek out higher returns, Mr. McEwen said. While conventional wisdom is that a return to higher rates would make interest-bearing assets more attractive, he said gold should become more appealing as markets recalibrate. To be sure, Mr. McEwen said in September, 2016, that gold could trade in a range of $1,700 (U.S.) to $1,900 (U.S.) by the end of that year. The metal ended 2016 below $1,150 (U.S.) as the dollar surged.
Comment by
BASTILLEDAY4U on Nov 26, 2017 6:13pm
The price of gold can also go way down especially if the markets crash as forecasted. Gold plunged below $ 720 in July 2008, investors had to liquidate to cover other losses.
Comment by
Goldhound3 on Nov 27, 2017 1:39pm
Gold does not need to drop to $720 for ALO to drop... We have fallin off a cliff and lost 50% even with gold hovering around $1300..