Gold to Hit $2K by Year's End: UXG Chairman
Gold will sell at $2,000 an ounce by the end of the year and could hit $5,000 an ounce by 2012-2014, Robert McEwen, chairman of U.S. Gold , a gold exploration company, told CNBC on Monday.
“We have declining annual production [of gold] and we have massive amounts of monetary stimulation that will debase the currencies around the world and cause people [to have] a loss of confidence and basically cause people to go to an asset that holds its values,” said McEwen.
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The Euro has hit a four-year low against the dollar and U.S. Treasury prices are edging higher. Although investors are turning to the greenback amid the European debt crisis, McEwen went on to say. That trend will not last long. Government efforts to avert economic pain by incurring more debt and printing money will only ramp up inflationary pressures, he said.
“A year and a half ago, a lot of people in Europe and the Middle East and Far East were saying they wanted to price their products in euros because they felt the dollar was weakening,” McEwen added. “Right now, they’ve found their assumptions were wrong and they’re trying to get out of the Euro and into the dollar, and that will continue for a while, but then they’re in the dollar and look at it and say ‘this isn’t a good place either.’”