US Gold CEO sees gold price soaring
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Reuters
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Published:
2009/12/22 05:40:49 PM
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“Annual mine production is declining and costs are going up, so that means higher prices,” Rob McEwen, chairman and CEO of US Gold Corporation, said in an interview.
“By the end of 2010 I see the gold price at $2000 and before the game’s over at over $5000.” Asked when that might occur, McEwen said: “That will probably be in 2012 to ‘14, because of lack of supply and also gold is money, it’s a currency.
“It’s only used as a currency in times of economic distress and we are at one of those points — one of three in the last 110 years.” Toronto-based US Gold has land holdings in Nevada and Mexico where it is carrying out exploration and drilling.
McEwen has extensive experience heading several gold mining companies over the last two decades.
Asked if the economic situation would improve by 2012, he said: “I think our governments will be printing more money and our dollar will buy less.” Gold, which set record highs over $1200 in recent months, hit a seven-week low today at $1087 per ounce in London, hurt by a firmer US dollar.