https://www.miningweekly.com

Gold bull McEwen sticks with his $5 000 call as pot stocks peak

18th January 2019

By: Bloomberg

  

Font size: - +

TORONTO – Gold mining veteran Rob McEwen is nothing if not optimistic.

The founder of Goldcorp is sticking with his bold prediction that the precious metal will soar almost fourfold to $5 000/oz, bolstered by a weaker dollar and waning demand for trendy assets like pot stocks.

“Once people get over buying cryptos and biotech and cannabis stocks they’re going to start looking at gold again,” the chief executive officer of McEwen Mining Inc. said in an interview Thursday in Toronto with Bloomberg Television. Asked about his price target, McEwen said: “I’ve always liked $2 000 and beyond that $5 000.”

McEwen has been wrong before. In 2017, he predicted a “tsunami” of liquidity seeking safe haven would push gold above $5 000/oz. In 2016, he predicted prices of $1 700 to $1 900 by the end of the year. The metal ended below $1 200/oz, and trades only slightly higher now at about $1 290/oz.

A loss of confidence in the dollar, a peak in the broader stock market and fears of inflation will feed the impending spike in gold prices, he said.

“The gold bull market started in January of 2016,” he said. “People haven’t seen it yet but we’re about a third of the way through.”

McEwen, 68, is a fixture in Canada’s tight-knit gold mining community. The founder of Goldcorp is a noted philanthropist, having donated tens of millions of dollars to healthcare, business education, and other causes. He also remains the country’s most famously unabashed gold bull.

Edited by Bloomberg

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION