Wednesday, September 12, 2012

Barrick Gold CEO: Gold Will Top $2,000 in Next Year

The new CEO of Barrick Gold  said Tuesday on CNBC's Squawk Box that he is optimistic about the outlook for gold prices, saying, “Gold could definitely surpass previous highs and go above $2,000 and even higher in the next year.” Barrick is the world’s largest precious metals miner and probably has one of the best fingers on the supply and demand situation relative to gold..

He based his forecast on the further Federal Reserve monetary stimulus that is coming and the fact taht central banks around the world turning into gold buyers.


  1. This is conservative. If we get a QE3 announcement out of the Fed, I think we are above $2000 on gold by the Nov. election. And we might be going way above $2000 in 2013.

    The big country to watch on this score is China. They have major economic imbalances that would probably lead to a major recession or depression if the government were to allow the market to fully correct. Of course, allowing such a correction is politically intolerable for the Chinese. Also, keep in mind a transition of the political leadership of China is occurring at the moment.

    The Chinese already have announced a large infrastructure program to support the economy. What you can bank on is next in the playbook is huge monetary stimulus and major efforts to devalue the yuan. I think this could get us to above $3000 by the end of 2013.

  2. That's a nice (read "useless") conservative estimate.

    Then again, I'm still waiting for it to break 1900 an ounce.