Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Gold bull McEwen says price rally has just begun

Robert McEwen, one of the gold’s industry’s best-known bulls, is predicting that the precious metal will continue to surge this year, closing 2017 much higher than today’s prices of around 1,290 an ounce.

The former investment banker, who for years have made bold predictions when it comes to precious metal prices, is sure that bullion will reach $5,000 an ounce, though, he warns, that won’t happen “immediately.”

“The metal is in an upward trend now and while it has years to go before it peaks, gold will continue to climb higher. It won’t be a straight line, but the direction is definitively up,” he told MINING.com.

The executive has never stopped believing in the shiny yellow metal. “Gold is money. It’s the ultimate currency. It’s a store of value that has gone for millennia,” he said, adding that it’s “one of those items” that investors should always have in their portfolios.

“If you don’t have interests in gold, you should give it serious consideration right now,” is his advice. So far, his faith in the metal has paid off. Low prices knocked him off the Canadian Business’ Rich 100 ranking in 2015, but last year, his company soared more than 170% as prices rose again and he made it back.

"Gold is money. It’s the ultimate currency. It’s a store of value that has gone for millennia." — Robert McEwen.
“2016 was a very good year for McEwen Mining. The best,” he said. “The firm doubled its treasury size, without resorting to financing (we haven’t done that since 2013), selling royalties, borrowing money, selling metal streams, or incurring in debt,” he noted.

McEwen not only has positive cash flow but year to date, the stock is up 6% in Toronto (TSE, NYSE:MUX) and almost 8% in New York as of close Thursday.

On Wednesday, the company received fresh good news after Lexam VG Gold Inc. (TSX:LEX), a junior exploration company with four brownfield properties in advanced exploration stage, voted in favour of being acquired by McEwen.

To continue reading please click link http://www.mining.com/gold-bull-mcewen-says-price-rally-has-just-begun/