By Edmond Lococo and Erik Schatzker
Jan. 12 (Bloomberg) -- US Gold Corp. Chief Executive Officer Rob McEwen said global gold prices may increase to $5,000 an ounce between 2012 and 2014 as rising U.S. government debt weakens the dollar.
“Money supply has expanded so rapidly that there are a lot more dollars looking for a steady home,” McEwen, also founder of Goldcorp Inc., said today in a Bloomberg Television interview. “Governments cannot help themselves. They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar.”
His forecast for gold, which is more than quadruple the current price, represents a “once-in-every-300-years” phenomenon, McEwen said. He maintained his previous forecast that gold will rise to $2,000 an ounce by the end of this year.
Gold futures for February delivery fell $3.60 to $1,147.80 an ounce at 8:27 a.m. on the Comex division of the New York Mercantile Exchange. The price of most-active contracts has risen for nine straight years.
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Robert McEwen Interview on Outlook for Gold Prices
Jan. 12 (Bloomberg) -- Robert McEwen, chairman and chief executive officer of U.S. Gold Corp., talks with Bloomberg's Erik Schatzker and Deirdre Bolton about the outlook for gold prices. McEwen expects gold prices to increase to $5,000 an ounce between 2012 and 2014 as rising U.S. government debt depreciates the value of the dollar.
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