Rob McEwen: Gold Can Go Much Higher than US$5,000
“I’ve always had a US$5,000 number, and I think it can go much higher than that,” said McEwen at the Precious Metals Summit.
The gold price has surprised investors to the upside in 2019, pushing through US$1,500 per ounce in August and continuing to hold steady at about that level.
Speaking at the Precious Metals Summit in Beaver Creek, Colorado, Rob McEwen, chairman and chief owner of McEwen Mining (TSX:MUX ,NYSE:MUX), said he sees more gains in store for the yellow metal.
“I’ve always had a US$5,000 number, and I think it can go much higher than that,” he commented.
McEwen pointed to overarching global elements like high levels of debt and monetary expansion as factors he sees moving the gold price.
But while he’s confident that a major gold price rise is coming, McEwen said pinpointing when it will happen is difficult. “You should get exposure to gold right now,” he said. “But in terms of a timeline, the ultimate height — that’s a good question. It’ll be a couple of years out from here.”
When asked how to play gold right now, McEwen said it’s up to each investor to determine what works best for them. For his part, he’s more interested in gold juniors than seniors in terms of stocks.
“I like the junior space more than the seniors,” he said. “It’s not as liquid, but you have more explosive moves on the upside. Also on the downside, but I think we’re in a part of the market where you want to be looking for stories that have good drill results, management has a commitment financially to it. And it’s been ignored in the market.”
Watch the interview above for more from McEwen on gold, including catalysts to expect from his company this year. Our full playlist for the Precious Metals Summit can be found on YouTube.
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