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Legendary mining entrepreneur and gold bug Rob McEwen hasn’t made his prediction secret: he thinks gold will go to US$5,000 an ounce, and probably a lot higher.
But meanwhile, he thinks investors aren’t paying full attention to the truth that gold is on a pretty outstanding run right now. The issue, to put it simply, is currency.
“People have just been so blinded because the price is quoted in U.S. dollars,” the executive chairman of McEwen Mining Inc. said at a luncheon presentation.
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He noted that gold isn’t not even close to its all-time highs in Canadian dollars and numerous other currencies. He thinks mining equities, including their own, should benefit weight loss investors notice that reality.
“If you cannot make money mining gold in Canada at these prices, you have problems,” he said.
McEwen also spoke concerning the longstanding trend in the industry of host governments demanding more and more from mining companies. He said industry players have to interact to push back against this practice or it’s not going to stop.
However, he noted that new Argentinian President Mauricio Macri, that has removed currency controls in addition to export taxes on minerals, has been very positive for the mining sector. McEwen Mining has a 49 per cent stake in the San Jose mine in Argentina’s Santa Cruz province.
