Thursday, December 2, 2010

Gold Headed to $2,000, Silver $60 to $75

With gold trading near $1,370 and silver breaking back above $27, King World News interviewed Sean Boyd, Chairman and CEO of Agnico Eagle to get his thoughts on where gold and silver are headed. When asked about gold specifically Sean stated, “I think having that perspective of being around the industry for a long time, if you go back ten years ago and someone had said gold was going to $2,000 then you would have thought well, if that’s the case then the world is going to be in a total mess. Well, we can see gold at $2,000 without the world being in a total mess. So I think this argument that we have to have disaster before gold is going to go up is wrong.”

Sean Boyd continues:

“We get caught up in these short-term fluctuations, and we tend to lose track of the big picture. I was just reading our 1999 annual report where we were making the case for gold when everyone had written it off and people were calling it the barbarous relic. So I just think we are gradually moving away from the concept that it was worthless, to people all of the sudden coming to the conclusion that it has a role. That is just starting in my view.

In the short-term gold has acted reasonably well. In the the next 6 months we should push our way up to $1,500, and gold will likely go through $1,500. But this is just an ongoing trend as we move higher and people start to realize the importance of gold as a currency. (more)

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