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« Randgold Resources Limited Stopped Out on Options Play with a Small Profit | Main | Agnico-Eagle Mines Limited Call Options in Positive Territory »
Tuesday
Mar092010

$2000/oz Gold by Year End, Rob McEwen

Rob McEwan.JPG


This is a prediction made by Rob McEwen appearing at The Prospectors and Developers Association of Canada (PDAC) that gold will hit $2000/oz by the year end and $5000/oz before this gold bull run is over. Thats a 78% increase in gold prices from todays price of around $1118.90/oz.

In response to a statement by the interviewer, that the government would mop up the money supply Rob replied along the lines of 'printing money is like a junkie with a high you just have to keep giving more and more dollars to keep the economy running.'

The story in general remains the same, governments around the world are trying to print their way out of trouble and as we have said many times its like trying to put out a fire with gasoline as per our article back on September 9th, 2007, when gold was trading at $709/oz, please click here to read that article in full.


Thanks to BNN who spoke to Rob McEwen, chairman and CEO, U.S. Gold and Lexam Explorations and founder and former chairman and CEO of Goldcorp Incorporated.

In another interview later on BNN talked with Peter Grandich who was more conservative then Rob and his predication for the year was a slow but steady increase in gold prices to around the $1300 to $1500/oz level this year and $2000/oz before this bull run is over.

As for the team here we are very bullish but we guess that you would expect that sort of stance from us and yes we are looking for gold to trade closer to the $2000/oz as confidence in most currencies is now not what it once was and people are slowly looking for a more secure vehicle to store their wealth. It is also possible to move from one asset class to another with great speed these days, all done at the press of a button which adds to the volatility for both the currencies and gold prices. We are aiming to position ourselves to take advantage of this volatility through the use of options trading which will add leverage to the movement in these assets. Its risky and you must be prepared to be wiped out in any one trade so find some discipline and risk only what you can afford to lose. As Peter Grandich says investment is a word we invented so that we don't have to use the word gambling, but it is all gambling, make no mistake about it.



However, if this is the sort of trade that might be of interest to you and you would like to get a bit more bang out of your buck, then check out our Options Trading Service to see how we are progressing, please click here.

All the best.

Got a comment then please add it to this article, all opinions are welcome and appreciated.


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Reader Comments (26)

Hi, interesting math, how do you get to $ 2000 with only a 44% increase on $ 1118? Ok, presumably a typo (or a "matho") but still enjoy your articles - keep up the good work.

March 10, 2010 | Unregistered CommenterBarrie Smith

Please cancel my subscription to your service. Please confirm the cancelation.

Tom Schadt
tom@citrinainc.net
303 543 0900

March 10, 2010 | Unregistered Commentertom schadt

Barrie,

A 'typo' – us? But its definitely a 'matho' so thanks for spotting it and letting us. Thats one of the good things about the comments box, it enables our readers to police us, which is a good thing.

March 10, 2010 | Unregistered CommenterGold Prices

Tom,

The easiest way to cancel your subscription is to hit the unsubscribe button on the letter.

Best of luck with your future investments we sincerely hope that they go well for you.

March 10, 2010 | Unregistered CommenterGold Prices

Not that I want to, but you mention to Tom Schadt to hit the 'unsub' button in the letter ... where abouts is it? I tried to search the whole page ....

March 10, 2010 | Unregistered CommenterTJ

my target is break below 1000 this month. and looks like the trend confirmed reversal today with silver (we have got nice dark cloud cover there on the daily) in april we bottom at 840, do final retest of 1000 and forget above-1000 gold prices for a while. Europe , the 2nd economy in the world is imploding and nobody thinks about how it will impact the dollar. I am suspecting this downtrend on the euro is some big speculation play for Europe disintegration. All this is bad for gold.
TJ, the unsub. button is in your email.

March 10, 2010 | Unregistered CommenterDi

I have been hearing that gold is going to 2000.00, 5000.00 and even an absurd 10,000.00 and above for about 4 years now from people like Bob Chapman, Robbie Noel and others.
Please stop the hype because Gold is NEVER getting above 2000.00 EVER!! and more likely is going back to 800.00 or lower for a long long long time.
If gold was going to those fantasy prices it would have done so long before now.
The commission on selling gold must be really good as this is I'm sure why these guys keep up the hype but it is just that HYPE!!

March 10, 2010 | Unregistered Commentermotomojo

Hopefully, gold will go to $2,000, but now it is too expensive for most people to buy gold.

I recommend, to the plebs & peasants, to buy canned food that has an expiration date of 2012. That way, in 2012 you are eating food at 2010 prices & don't have to pay capital gains. That's what I'm doing after I bought gold $580 an ounce. Now, I'm buying food by the ounce.

March 10, 2010 | Unregistered CommenterSilverFox

TJ,

Its at the bottom of the page in the middle, it says
unsucribe now and is underlined.

March 11, 2010 | Unregistered CommenterGold Prices

Yes gold is going to see $2000 and beyond, silver prices will shock the world, it is inevitable...plenty of people can afford $2000 gold...what a lot of people DON'T have is patience, got to have that immediate gratification...folks want to bail out, see ya...! I'm having a good laugh listening to China and all you gold bears talking down PM's, no patience, no understanding of the financial sh*t storm heading everybody's way, we are barely 1/2 way through the PM bull market and it's near 10 years old already. All these silly immature dweebs want to cancel your subscriptions, just go away! Don't let the door hit your a** on the way out!

March 11, 2010 | Unregistered CommenterSnakeman

That's right keep buying gold but when the s*** hits the fan you will find Gold very pretty to look at but you can't eat it.
If you have any sense at all you will be buying Food and getting yourself a good source of water and alternative source of electricity and some heirloom seeds. These things will serve you much better than a pot full of gold (and will be worth much more for bartering) which you can do nothing with but look at until the Gov takes it from you in the next confiscation they did it once already and will again so keep buying it and good luck.

March 11, 2010 | Unregistered Commentermotomojo

Gold may go to $2,000, $5,000 or even $1,000,000 but what I never see explained in any of these prognostication articles is the real reason for the increase in the price of gold. When will someone finally explain the fact that the "price" of gold will go to whatever value you might choose is simply because the VALUE of the DOLLAR will be at or near ZERO. Buy as much gold as you can (silver may be a better bet, though) and include plenty of guns and food too! But don't forget the first most valuable metal though, you'll need plenty of lead in the form of bullets for the guns. It won't be long now.

March 11, 2010 | Unregistered CommenterItsSimplyAmazing

I agree that things might get that bad, but gold is gunna hit $2k long before that, and silver far higher than it is now...when the time comes, I'll be happy to live off the land, I'll be heading to Costa Rica or Belize...quite happy with beans and franks, if I ever see real monetary wealth that won't change...the government won';t waste their time with me, there are plenty of bigger fish to fry.

March 11, 2010 | Unregistered CommenterSnakeman

Gold ,Real Gold that is is bound to rise during the currency devaluations and coming Stagflation...Seems the Fed
and their Ft. Knox gold stash has dumped trillion of dollars woth of Gold coated tungstan bars and coinage ,Hong Kong Bankers discovered 3/4 trillion worth in October ,Nigeria tried to dump their load of fake glitter
in S. Africa, but were discovered ,It remains to be seen
how much of the fake China and India have bought ,
Looks like Fiat money for Fiat gold. the question remains ,
Who got the real gold and covered their Goldfinger theft
producing their fake bars, I like silver ,too cheap to fake.

March 11, 2010 | Unregistered CommenterIlluminutty

Yes it takes a lot of personal effort to educate oneself about why there's a bull market in PM's at all...a good site is kitco.com...daily reading of articles published there, which includes some of GP's writings...will lead to a greater understanding of US and world finances...they together have helped me largely understand the "big picture"...a continued decline in fiat currencies, increased reliance on a welfare state, self-serving politicians and bankers, special-interest lobbying...the commercial real-estate storm coming...mass media continueing to paint a rosy picture...so many things point towards a worsening financial picture world-wide, it makes perfect sense we're in a long-term PM bull market...I just don't think in any way the worst is over, not by a long shot...add in the counterfiet gold bars to the mix, too...hold onto your seat, that storm is coming...

March 11, 2010 | Unregistered CommenterSnakeman

I'm confused Di. (Comment #6) You said the following on Feb 17:

"take profits guys, because i am short silver again today after being forced to take profits at 15.80 . not sure if it can go higher than 16.30, maybe, but certainly not above 16.50 ... next week it is going to be a bear party again, and i hope in march we are going to kiss & goodbye to above 1000 gold prices

Comment by Di — February 17, 2010 @ 1:15 pm

Am I missing something? Silver's been trading well over $16.50 for days. You said it was CERTAIN that couldn't happen and that prices were set to tumble. I think we all deserve an explanation.

Just curious. Have you covered that short position? If not, at what higher price would you cover? Now that silver has reached its recent high of $17.65, how much higher can it not possibly go?

March 12, 2010 | Unregistered Commenterfallingman

Team,

In my next life I'm not going to be devilishly good looking, I'm going to have a good memory!

March 12, 2010 | Unregistered CommenterGold Prices

Come on Di, speak up...

March 12, 2010 | Unregistered CommenterSnakeman

I see a lot of people on this board trying to jawbone down the price of gold. That would be in the very interests of the vampire squids (Goldman Sachs, JP Morgan Chase, etc.) that engineered the current 'financial' crisis. Those vampires are in the business of betting against their own clients in order to jimmy the markets for their Plunge Protection Team butt buddies. Their arguments that gold is too expensive are spurious in that gold is sold in fractional quantities, many of which are cheaper than a share of Google stock.

There is a sense of inflation denial here that borders on the irrational. The reasons gold's price increases are because of increased private and state investment demand, diminishing mine production and the coincident effects of fractional reserve finance which produce a relentless devaluation of the world's currencies. Those whose interests lie in maintaining the global fiat currency mercantile system would have you believe that gold is a worthless relic.

Notice how the alternatives they sell you are usually paper financial instruments or 'faith' in a system that has rapaciously stolen from its producers since day one. by their fruits ye shall know them...

March 14, 2010 | Unregistered CommenterA. Magnus

People told me I was crazy when I paid $282 for gold. Wish I had bought more then. It still makes since to buy at todays prices. There will be more of this sideways market for a while longer and maybe even a slight uptick in the economy. Dont be fooled. The Washington has only 2 choices for the debt. both of which are bullish for gold big time.. "1. Washington will slash spending to the bone and tax us into a depression or Washington will destroy the value of our money." (from Sean Brodrick) So when gold does hit 5k an oz the least of our worries will be just that. It will be the hoards & I mean HOARDS of the welfare state people looking for their next meal. If anyone takes anything away from my options, Please begin stocking up on items you & your family will need to survive on. Guns, bullets & beans is a good start.

March 14, 2010 | Unregistered Commenternitewatch

There it is. I work in the pharmacy field and every week I see illegal aliens from a country south of the US getting free health care...these people can't speak a word of english...some get $1000+ in free meds...one person...one hospital...one day...multiply that by 100's or thousands across the US...most people just hear about this, I SEE IT FIRSTHAND almost daily...we working people pay taxes to fund these welfare recipients...our politicians allow it to happen, as long as they get their sweetheart salaries and federal benefits they couldn't care less about the middle class...if the gold bears think this sort of thing is ending...negative.....let the gold bears fund the welfare state, be my guest..

March 15, 2010 | Unregistered CommenterSnakeman

You fools can buy all the gold,guns and food you want and go hide in a mountain,BUT,"EVEVNTUALLY" it will all go down with or without your say-so. And then what good will your ASSESTS be.You can't take them with you.Even the richest men in the world will perish one day, no matter what. The meek shall inherit the earth.

March 15, 2010 | Unregistered CommenterMr. T Cook

Gerald Celente forecasted that gold will reach $2000 by end of 2010. Did it happen? So how do you say it will be $5000 or even $100000/oz? When? What for you need then when your existence will be perilled?

March 9, 2011 | Unregistered CommenterDr. Altaf

Dude, you're a year late to the party, but the same cast of characters may still be be tuned in...except Mr. Schadt, of course. So, here goes.

Comments:

Timing is hard. When? Who knows, but if you hadn't noticed, the price is moving up. Maybe next month...maybe 5 years from now. Does it really matter? the trend is crustal clear and the underlying fundamentals have gotten more supportive of a move higher...not less.

Let's get this clear once and for all. Gold is money. It holds its value when paper doesn't. Can you eat it? No, but try eating a dollar bill.

It's not magical. It's just damn useful as a medium of exchange that won't lose its value. Personally, my plan is to wait until the mania phase arrives and then convert that value into real usable things and real property before the disintegration occurs.

It's like when you're given the warning that two lanes are merging on the interstate. There's no reason to get over and sit in line going nowhere until the left lane is blocked. Stay with gold and silver until the party's over and then convert most of what you hold to something more immediately useful that's less of a target. Will my timing be right? I hope so, but what else are you going to store wealth in until then? Clownbucks? Good luck with that.

Could the government screw up that plan? Sure. Would it be better to have no plan, have no money, and no barter or purchasing power? I don't see how that could possibly be the case. (Silver is obviously better for the former.)

It's insurance. Do you not buy insurance on your house to protect you in case of fire?

Look, in a world gone mad, where the power of the individual is reduced to doing what you can for yourself, you do what you can do. Gold is a compact, highly tradable, easily concealable form of money. That makes it a good thing to own. What part of this isn't clear?

The commentator, ItsSimplyAmazing (above) understands. Exactly. I hope he/she is wrong about the bullets, but who knows.

By the way MM, the "commission" on selling bullion coins sucks. It's actually a bid / asked spread and it's pretty damn small.

Lastly, as ISA says, the "price" of gold is now quoted in dollars. That won't be the case for much longer, as those numbers will become meaningless. What matters is how many ounces you hold and how much real stuff you can get for them. Absolutely NO ONE will have any interest in trading them for peachbacks. The Bernanake is making sure they'll be worthless.

March 10, 2011 | Unregistered Commenterfallingman

Our friend Fallingman speaks the gospel of truth regarding PM's, except I believe there isn't going to be a post-mania disintegration...not like other bull markets...this one is going to be supported at shall we say high levels because gold and silver will go into supporting world reserve currency...the world is losing faith in a fiat/paper system...gold and silver will never again reach the bargain prices we are still relatively at....when the wealth funds and pension systems wake up and pile into PM's, on back of Asias's phenomenal strength, PM's will settle at levels that will shock the world, especially our own staff-shorter (name shall go unsaid, Di-d I say that?). You bears with the learning disabilities will finally get the message. Rock on...Snakeman

March 10, 2011 | Unregistered CommenterSnakeman

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