As gold keeps soaring to record highs, Aaron Regent, CEO of Barrick Gold, warns that the precious metal is subject to corrections.
Barrick is the world’s biggest gold producer.
The metal could fall as far as $900 an ounce, 19 percent below recent levels, Regent told the Financial Times.
But he expects the upward trend to resume, and the FT points out that Barrick’s activity in the futures market suggests it believes gold will ultimately stay above $1,000.
Gold’s surge has come amid the dollar’s descent and worry that massive inflation looms.
Another bullish factor is declining gold output, Regent told The Daily Telegraph.
Global output has dropped about 1 million ounces a year since 2000, and total mine supply has shrunk 10 percent as ore quality deteriorates.
"There is a strong case to be made that we are already at peak gold (output)," he told The Telegraph.
"Production peaked around 2000, and it has been in decline ever since. We forecast that decline to continue. It is increasingly difficult to find ore."
Many experts expect gold to explode higher.
Investment legend Jim Rogers is one of them, noting that inflation-adjusted gold prices remain below 1980 peaks.
“If you go back and adjust. . . for inflation back in 1980, gold should be over $2,000 an ounce.
“In my view it will get there again sometime in the next decade,” he told Bloomberg News.
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