Tags: mcewen | gold | soar | $5000

Expert: Gold to Hit $5,000 When Dollar Collapses

Friday, 15 Jan 2010 09:56 AM

Excessive monetary stimulus and a plunging dollar will send gold prices soaring, according to Rob McEwen, chief executive of US Gold Corp.

“I’m saying by the end of 2010, we’re at $2,000 an ounce, and before the cycle is over, we’ll be at $5,000. I think we’ll see it in 2012-14.,” he told Bloomberg.

In 2002, when gold traded at $350, McEwen predicted it would rise to $800 within nine years.

The precious metal climbed to a record high above $1,200 last year before sliding back a bit.

Gold has been the best performing asset over the past decade, returning 15 percent a year, he points out.

And what will push it higher?

“Money supply has expanded so rapidly that there are a lot more dollars looking for a safe home. And gold fills that function,” McEwen said.

“This is once twice or three times in a 100 years you’re going to see an event like this.”

Investors can thank their government.

“Governments can’t help themselves,” McEwen said.

“They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar,” McEwen said.

Concern about sovereign debt woes also may boost gold, John Licata, chief investment strategist at Blue Phoenix, told CNBC.

"I think there are plenty of catalysts that have not been talked about related to gold," he said.

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Excessive monetary stimulus and a plunging dollar will send gold prices soaring, according to Rob McEwen, chief executive of US Gold Corp. I m saying by the end of 2010, we re at $2,000 an ounce, and before the cycle is over, we ll be at $5,000. I think we ll see it in...
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Friday, 15 Jan 2010 09:56 AM
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