We are beginning to see the leadership of precious metals producers frame their view of the markets... talking it down a bit—in this case saying the price is driven by costs—shading it with a slightly negative tone. Still he is calling for a higher price for bullion.
What I am looking for are indications that the majors are preparing to buy up some juniors and I do see in this CEO's comment that they are focusing on what their profits will look like. So, in my opinion, we are getting closer.
=]
G
Increasing mining costs and financial concerns to drive bullion, he says
Gold could "easily" rise to $2,200 an ounce in the next two years as costs increase and global financial concerns persist, said the chief executive officer of AngloGold Ashanti Ltd., the third-largest producer of the metal.
"It costs almost $1,200 to produce an ounce of gold," Mark Cutifani said at a conference in Perth. "The gold price probably reflects the fundamentals of the industry."
Read more here
No comments:
Post a Comment