Tags: gold | Jeannes | Goldcorp | 2000

Goldcorp’s Jeannes: Gold Will Soar to $2,000 Next Year

Wednesday, 07 Nov 2012 10:00 AM

By Dan Weil

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Gold has risen 9 percent so far this year, and the party’s only getting started, says Charles Jeannes, CEO of Goldcorp Inc., the world's second-largest producer of the metal.

He sees gold reaching $2,000 an ounce within six to 12 months. That represents a gain of 16 percent from the spot price of $1,726 early Wednesday.

“The fundamentals of our product in terms of supply and demand are very positive,” Jeannes tells CNBC. “There will be short-term volatility, but we’re very bullish on the longer-term price.

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A correction could take gold back down to the $1,500s, but Jeannes says chances are very remote that the precious metal will fall back to $1,000.

Even at $1,500, “we’d still make very positive cash flow,” he says.

Gold rose early Wednesday after President Barack Obama’s election victory reassured investors that the Federal Reserve will maintain its accommodative monetary policy.

“Investors are probably convinced that an extension of a Democrat in the White House would ensure a continuation of the Fed’s easy monetary policy,” Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore, tells Bloomberg.

The thinking is that the Fed’s five-year easing program will result in rabid inflation. Consumer prices rose 2 percent in the 12 months through September.

If you want to invest in gold, you might consider an exchange-traded fund that contains either bullion itself or gold-miner stocks.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

© 2014 Moneynews. All rights reserved.

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