Gold Bull Sees Price Up 44% By Year’s End

Gold Bull Sees Price Up 44% By Year’s End

Gold Bull Sees Price Up 44% By Year’s End

$GLD, $SLV, $GG, $MUX

Gold Bull Robert McEwen seeing Gold’s price up as much as 44% by the end of the year as confidence in the US economy fades.

The precious Yellow metal could trade in a range of 1,700 – 1,900 by the end of Y 2016 as uncertainty builds around the stability of global currencies and sovereign debt, said Mr. McEwen, the founder McEwen Mining Inc. and Goldcorp Inc (NYSE:GG).

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, he said.

When Rob McEwen bought the Red Lake Mine in Y 1989, he was told that the 50 year old Ontario gold source was near the end of its life.

Instead, he turned it into one of world’s top-producing mines.

Moves like that have helped Mr. McEwen, 66 anni, now Chairman/CEO of McEwen Mining Inc.(NYSE:MUX), achieve legendary status in his field. Some consider him an unconventional thinker who used a crowdsourcing contest to unlock Red Lake’s riches over a decade ago, he turned a million dollar bet in a billion dollar asset.

He also helped McEwen Mining avoid delisting late last year ahead of a booming Y 2016 share-price rally. Today Mr. McEwen has his sights on another accomplishment, that getting the company that bears his name into the S&P 500 index SPX precious-metals miners are scarce. To do it, he says, “the company must look beyond organic growth, taking part in a rising tide of deal making in the sector.”

Gold “is a currency that doesn’t have a liability attached to it,” Mr. McEwen said in an interview. “A store of value that has gone for millennia. And 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.”

In New York, Gold futures for December delivery settled at 1,317.10 on the COMEX. Prices are +24%so on the year, this biggest gainer for this point in the calendar since Y 2011.

Bullion’s Y 2016 rally comes after 3 straight annual losses. Prices have fallen 31% since reaching an all-time high at 1,923.70 in Y 2011.

Mr. McEwen is betting big on Gold.

As the CEO of his eponymous company, he’s paid $1 a year and does not eceive bonuses, wagering that his share holdings will reap him huge rewards.

33600det

In Y 2000 Mr. McEwen, a former investment banker, launched an audacious experiment when he was at Vancouver-based Goldcorp. Offering $575,000 in awards, he open to the public 50+ years of proprietary data on the company’s under-performing Red Lake Mine in Ontario and challenged geologists to locate the next 6-M ounces of Gold.

Red Lake became one of Goldcorp’s richest Gold mines, producing more than $3-B worth of the precious Yellow metal

Mr. McEwen now expects Bullion could reach $5,000 in 4-5 years, has made predictions for prices.

He expects a number of catalysts for the spike in prices, from the US election to instability at many of the world’s big banks, Deutsche Bank’s (NYSE:DB) and Wells Fargo Company (NYSE:WFC) travails may be The Back Swans to brings his foresight to life

“You have many more people involved in the market than you ever have before, crowd psychology is there,” he said. “Reasons for anxiety are multiple than what we’ve had in the past and there will be a triggering event.”

As for the US elections, Mr. McEwen said that no matter which candidate wins the White House, either will be positive for prices. US voters go to the polls on 8 November, when Donald Trump, the GOP Presidential nominee, will go up against the elite progressive Democrat Hillary Clinton.

“Hillary has got a very accommodative platform,” Mr. McEwen said. “She’s made promises to every group you can imagine in the United States to give them money. Donald Trump is less expansionary…”

Related story on the US election: UPI Poll – Trump Now Leads in Electoral College

Have a terrific weekend.

 

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :  
CONNECT WITH