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.
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