Akin to Peter Schiff’s recent projections, goldbug and Canadian gold industry executive Rob McEwen believes gold will still hit the $5,000 an ounce mark, despite gold falling below $1,400 over the past several days.
Speaking to the Business News Network (BNN) in Canada, McEwen explained that gold has hit bottom but will eventually rise to that hefty figure because interest rates will move higher. Any future hike in interest rates will inevitably lead the yellow metal to increase its prices.
“I think we are at the bottom for gold. We have seen the bottom and sometime this fall it will be a lot easier [for gold producers] to raise money,” explained the founder and former CEO of Goldcorp. “Investors need to look at the fact that gold goes through these cycles with a fair amount of regularity. At the moment the gold shares are trading at levels we haven’t seen since 1999, which was a very opportune time to get into the market.”
The industry as a whole will face difficult times for the remainder of the year because it’s difficult to raise capital in the sector. McEwen believes businesses in the industry will fail to garner financing until gold prices roar again. Once autumn rolls around, according to McEwen, financing opportunities will become prevalent.
In October, Schiff, the president of Euro Pacific Capital, told the International Business Times that he still stands by his prediction of gold reaching $5,000 per ounce. For years now, Schiff has been urging people to buy gold to protect their wealth from the inflationary policies of the Federal Reserve.
Economic Collapse News reported late last year that Jeff Clark of Casey Research put forth analysis in a newsletter that gold would be hitting $2,300 by Jan. 2014. Once again, the forecast was mostly due to the Fed’s injection of inflation into the United States economy.
At the end of Thursday’s trading session, gold finished at $1,391.70, while silver completed the day at $23.24. A lot of goldbugs have been seeing these numbers as fantastic buying opportunities for those who have invested in gold and silver or have not yet acquired bullion.
Below is a separate interview with Kitco.
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