Legendary mining entrepreneur and gold bug Rob McEwen has never made his prediction secret: he thinks gold goes to US$5,000 an ounce, and in all likelihood a lot higher.
But meanwhile, he thinks investors aren’t paying full focus on the fact that gold is on the pretty outstanding run right now. The problem, simply put, is currency.
“People are just so blinded because the price is quoted in U.S. dollars,” the executive chairman of McEwen Mining Inc. said in a luncheon presentation.
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He noted that gold isn’t far from its all-time highs in Canadian dollars and numerous other currencies. He thinks mining equities, including their own, should benefit as more investors recognize that reality.
“If you cannot earn money mining gold in Canada at these prices, you’ve got problems,” he explained.
McEwen also spoke concerning the longstanding trend in the industry of host governments demanding increasingly more from mining companies. He said industry players have to interact to break the rules from this practice or it’s not going to stop.
However, he noted that new Argentinian President Mauricio Macri, who has removed currency controls as well as export taxes on minerals, has been very positive for that mining sector. McEwen Mining includes a 49 per cent stake in the San Jose mine in Argentina’s Santa Cruz province.
