Friday, July 29, 2011

Newmont Prez: Gold to Break Above $1750

Newmont Mining Chief Executive Richard O'Brien said gold will rise to $1,750 an ounce in 2012 due to inflationary pressures and continued uncertainty in U.S. and European economies.

"I think we’ll continue to see pressure on gold prices for many years to come," he told CNBC Friday. For the mining company "it is a boon for our business."

These exact price predictions are fun to note, but shouldn't be taken too seriously. As long as the Fed continues to print money the gold price will climb. And the more the gold price climbs, the more people consider buying some gold. For all we know, this could mean $2,000 per ounce gold by the end of 2011. We are in a massive gold climb. At some point, if the Fed continues to print money, everyone will want to own gold. Think about the demand-side pressure from that happening.


  1. Gold crashed in the 80s. I am very curious about that time period since it seemed like the monetary system was headed for collapse, and somehow it was saved. Ron Paul was predicting civil unrest and stuff, but it didn't happen then. Maybe it was just delayed.

  2. $1750 in 2012?!

    Heck, it may hit that by October of 2011. Probably not, but I can hope, right? Obama is very likely to issue a debt ceiling increase by presidential decree. Once that happens, the market will resume higher and precious metals will level off. However, if August 2nd arrives and nobody does anything at all (Congress, Obama, etc) . . . watch out. PM's will shoot to the moon.

    Wierder things have happened.