Gold’s rise above $4,000 (C$5,500) per oz. hasn’t ended the bull market, industry doyens told the recent International Metals Symposium in London, arguing the metal is being lifted by doubts about the US dollar and steady central bank buying.
McEwen (NYSE, TSX: MUX) Chair and Chief Owner Rob McEwen’s advice to friends and family was simple: buy. He told The Northern Miner podcast host Adrian Pocobelli that bullion has climbed 121-fold since the early 1970s and called today another “inflection point” as confidence in the dollar is “severely questioned.”
Rule Investment Media founder Rick Rule echoed that sentiment, comparing the current backdrop to the 1970s. He expects the dollar to lose about 75% of its purchasing power over the next decade – a shift that could see a roughly threefold rise in the gold price.
“Gold does well in circumstances that are necessarily very bad for the rest of your life,” Rule said.
Alamos Gold (TSX, NYSE: AGI) CEO John McCluskey said the rally has unfolded without the broad surge of generalist capital that typically marks a late stage move, leaving many producers trading around one times net asset value despite swelling margins and free cash flow at current prices.
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