Agnico Eagle CEO Sean Boyd - $2,000 Gold This Year
With gold and silver near recent lows, King World News today interview Sean Boyd, Vice Chairman and CEO of Agnico Eagle which boasts a $15 billion market cap. When asked about the action in gold and silver Boyd stated,“Investors are gaining more confidence not just in the economy, but in the world’s financial condition. I think that that confidence is misplaced. I think what you’ve got is a relatively modest pullback in gold and silver, and over the last ten years anyone who has stepped up and bought has done incredibly well.
“As you and Jim Rickards covered in your interview, if you are talking about the proposed creation of $100 trillion of new credit it is not fixing the problem, it is delaying it. We see continued uncertainty, it’s easy to propose a massive bailout that doesn’t really deal with the underlying issues, this would just defer the problem.
I think investors have to take a step back and look at the big picture. We had the love affair in paper in the late 90’s and ever since that ended we have seen a move to hard assets. Right now we are just seeing investors and funds trading around positions inside this continued consolidation in gold and silver. We have seen this so many times in the last 5 or 10 years.
Some have been taking profits in both metals, but particularly in silver you may be seeing some miners doing some forward hedging. We don’t do that, but you might have been seeing some byproduct selling and some hedge fund selling in silver at the $30 level which accounted for the strong resistance in that area.
When $1,400 falls we will really begin to see the next leg higher in gold. At that point $2,000 is very much in the cards within the next twelve months and during that run silver could very well double in price, so it should outperform.
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