Wednesday, October 26, 2011

AngloGold Ashanti CEO: Gold could "easily" hit $2,200 in 2 years

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.



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."

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