Gold to Reach $1700 Within 2 Years: Stock Picker

Gold rose to a second successive record high near $1,350 an ounce Wednesday. How far will the precious metal go and how can investors profit? Joe Foster, portfolio manager at Van Eck International Gold Fund shared his thoughts.

“If you look at this bull market, it’s been going on for almost 10 years,” Foster told CNBC. “And if we get runs like we’ve have over the past few months, we'll get pullback regardless of fundamentals, so it wouldn’t surprise me to see a pullback of $25, $50, even $100 an ounce before we resume the trend higher.”

With that upswing, Foster said he expects gold to reach near $1,700 an ounce in the next 12 to 24 months. He told investors to look into companies such as Iamgold , Agnico-EagleMines and Kinross .

“These are companies whose offices are Toronto—Canada is a global mining center, but they have operations all throughout the world,” Foster explained. “All three of these companies have good growth going forward and management that can deliver that growth.”

Scorecard—What He Said:

  • Foster's Previous Appearance on CNBC (Jun. 30, 2010)

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Foster, his family and firm own shares of IAG, AEM and KGC.