US Gold boss sees gold price soaring
A gold supply shortage and governments printing money will likely drive up the gold price to $US2, 000 per ounce by the end of next year and above $US5, 000 between 2012 and 2014, a gold mining executive said on Tuesday. "Annual mine production is declining and costs are going up, so that means higher prices," US Gold Corp chief executive Rob McEwen told Reuters in an interview. "By the end of 2010 I see the gold price at $US2, 000 and before the game’s over at over $US5, 000." Asked when that might occur, Mr. 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’re 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. Mr. 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 $US1,200 in recent months, hit a seven-week low on Tuesday at $US1,087 per ounce in London, hurt by a firmer US dollar.