Rob McEwen, chairman and chief owner of McEwen Mining (TSX:
MUX
,NYSE:MUX), is well known for his
US$5,000 per ounce gold prediction
. But with the metal rising this year he has a new call.
“I have to say … that I think it’s going to be north of US$5,000 now,” he told the Investing News Network.
“When you look at the response to fighting COVID, it’s not one country or a small group of countries, it’s global. The monetary expansion has been enormous. In addition, the debt loads are much greater. So I think the possibility of a much higher price than US$5,000 is very real.”
When asked about the main factors driving gold in a year that’s been focused on the coronavirus and the US election, McEwen noted that those and other issues are contributing to marketplace uncertainty.
“During those periods, people tend to look for an investment that holds value, and that I think is moving people over. You’re also … hearing people, large investors coming out and saying, ‘Take a look at gold,’” he said. Those large investors include Paul Tudor Jones,
Ray Dalio
and
Warren Buffett
, and McEwen believes that as their advice takes hold more small-scale investors will begin to enter the gold space.
“The more money that we see being made in the gold stocks, the more money you’re going to start see flowing into the investment arena,” he explained.
“So far, with the exception of a few number of exploration stories, it’s been the senior gold stocks that have been getting most of the following. But if that continues, there will be a rotation down to the intermediates and the juniors, the explorers and the turnaround situations.”
McEwen is most interested right now in juniors and turnaround stories, and believes that McEwen Mining falls into the latter category. Watch the video above for more on gold and his company.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
