There was every possibility that the gold price could go back to $1 000/oz once again, joint Simmer & Jack Mines and First Uranium CEO Gordon Miller said on Thursday

Miller said that gold’s safe haven in a turbulent world had been forcefully recognised on Wednesday when it took its biggest single leap in history, as bond yields came down.

Gold was also a hedge against inflation with inflationary pressures resulting in an increase in the gold price.

“We’ve seen significant offtake in gold, physical demand, which all bodes well in terms of the fundamentals, but at times like this it is going to be very volatile.

“In the early stages of the subprime crisis, we saw gold coming off from highs of $1 000/oz, and there is every possibility that it could go back there once again,” he said.

Miller was speaking to Mining Weekly Online at the opening of First Uranium’s newly commissioned Ezulwini gold plant west of Johannesburg, asserting that uranium production would be following hot on the heels of increasing high-margin, low-cost gold production.

The company was still producing gold in moderate volumes at both Ezulwini and at the tailings-recovering Mine Waste Solutions, both of which were geared to ramp up production volumes substantially next year.

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