Tags: barrick | gold | price

Barrick CEO: Gold Will Top $1,000

By Julie Crawshaw   |   Monday, 02 Feb 2009 04:09 PM

Barrick Gold CEO Peter Munk sees gold hitting $1,000 an ounce, and soon.

The “unpleasant and frightening” trend of investors buying gold as a hedge against losses in other investments could drive the price to more than $1,000 an ounce, Munk told Bloomberg TV in an interview.

“That’s not where you want to be. It’s alarming,” Munk said.

“Do I personally believe gold will break through $1,000? It’s not a question of if, it’s a question of how soon.”

Gold traded recently just a few dollars over $900. It last touched $1,000 in March 2008.

Even so, gold hit $875 in 1980, which means it would have to be well over $2,200 now to have kept up with inflation alone. Few people expect that outcome.

Nevertheless, the mining company chairman says he’s getting an increasing number of calls from wealthy investors looking for ways to buy bullion.

Gold is “the obvious counterweight” to currencies, Munk says.

Munk sees the current strong demand for precious metals and for mining shares is as a “sad part of a civilized society.”

“Americans were brought up to believe in the dollar, with some justification,” Munk notes.

“Today, it’s a situation where people also have concerns about the dollar paper currency.”

At $900 an ounce, gold has reached record levels in Indian rupees and Russian rubles. Global investors buy it as a hedge against currency declines, adding credence to the idea that, if not an effective inflation hedge, gold is absolutely a hedge against panic.

Matt Zeman, head trader at LaSalle Futures, sees gold continuing to gain even as prices for other commodities drop.

"You see these steep sell-offs in equities and we see a lot of that money coming back into gold,” Zeman told The Associated Press.

“I think it looks poised to continue to move higher."

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Barrick Gold CEO Peter Munk sees gold hitting $1,000 an ounce, and soon.The “unpleasant and frightening” trend of investors buying gold as a hedge against losses in other investments could drive the price to more than $1,000 an ounce, Munk told Bloomberg TV in an...
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