Photo: covilha via flickr
In an interview with King World News, Sean Boyle, the CEO of Agnico Eagle, said that he expects gold hit over $3,000 within the next 24 months. Agnico Eagle is a major gold producer with a market cap north of $6 billion.When asked where the price of gold will be 24 months from now Boyd responded, “We actually did a little pool this week when we were at a mining conference. My number was over $3,000. I’ve never been at the $3,000+ number, ever, in 27 years.
That is a very strong prediction from a person of Boyle’s stature and position. Boyle’s reasoning behind the call is that he does not see the underlying issues in Europe being addressed anytime soon. He believes that politicians will not make the tough calls that are needed to straighten out the issues, because nobody is forcing the politicians to change their attitudes.
Boyle also does not see the negative correlation between gold and the equity market that many often assume.
What we look at, and what we see as a false argument, is people are saying, ‘Well, the way the equities are performing is telling us that gold is going to go down.’ We simply don’t see that given the fact that we’ve got strong demand coming out of places like China and India.
We’ve also got central banks (buying) and we don’t think that’s going to turn around any time soon. So the underpinning of the gold market is still there. I think that will carry us forward as people start to realise that none of the fundamental issues have actually been addressed.
Read the whole post at KingWorldNews.com.
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