Prices could surge as much as 44 percent by the end of the year in a prediction made by Robert McEwen, one of the gold’s industry’s most unabashed bulls due to confidence in the economy buckling, he said.
We could see metal trading in a range of $1,700 an ounce to $1,900 by the end of 2016 as uncertainty builds around the stability of global currencies and sovereign debt. “Record-low global interest rates will cause a huge amount of anxiety for investors, who will turn to gold as a store of value and an alternative asset.” McEwen said.
McEwen went on to say on Tuesday in an interview at a gold conference in Colorado Springs “Gold is a currency that doesn’t have a liability attached to it”. In the past the big argument against gold used to be it costs you money to store it. Right now, it’s costing you money to store your cash.
McEwen is gambling big on gold. As the chief executive officer of his eponymous company, he’s paid $1 a year and doesn’t receive bonuses, betting that his share holdings will reap him ample rewards. He’s doing this at a time when many gold executives are treading curiously over the metal’s recent comeback as the wounds still feel fresh from the bear market that started in 2013.
This isn’t the first time that McEwen has made bold predictions for prices he expects bullion could reach $5,000 in just four years. He gave the same outlook in 2011 less than five months before gold peaked and then plunged as much as 46 percent to a five-year low reached in December 2015.
“Gold is a currency that doesn’t have a liability attached to it”
This time, McEwen expects a number of catalysts, from the U.S. election to instability at banks, could make his prediction come to fruition.