Agnico Eagle CEO - Gold Could Rise to Unimaginable Levels
KingWorldNews.com
With gold around the $1,780 level and silver trading near $35, today King World News interviewed Sean Boyd, CEO of $8 billion Agnico Eagle. When asked what he sees going forward with the price of gold, Boyd responded, “It’s still a very strong market. There was forced selling not too long ago by certain holders and that tended to spook the market. But we have been consistently sticking with the investment thesis that governments have too many obligations that they simply can’t meet and as a result we are going to see ongoing and continued debasement of paper money.”

Sean Boyd continues:

“The flip side of that is people are looking for hard assets and gold, being one of the primary hard assets, is a major beneficiary. So we don’t see any reason to believe this upward trend in gold won’t continue. I think it will continue and we will see $2,000 shortly.

So we’ve seen some volatility, I think that’s natural, but the general trend is more uncertainty, more debasement of paper currencies and gold is going to be one of the primary beneficiaries of that.”

When asked if he ever thought, years ago, the world financial situation would have deteriorated the way it has, Boyd replied, “No and we still had, like most people, confidence that the authorities, the government officials and central bankers would have been able to figure it out. And it’s clear they haven’t been able to figure it out.

They’ve tried things that have traditionally worked, so those are things they expected to work. But maybe it’s a function of the liabilities and obligations and promises they’ve made are so large now that the old ways of dealing with them just doesn’t work anymore and that’s the scary part. No one knows where this will end, that’s what is scary and this is getting people increasingly worried....

“There’s very little political will to come up with solutions. That is simply feeding the uncertainty and that uncertainty is causing people to look at ways to protect their wealth. So people that have money or are managing money are looking at ways to protect it. Obviously one of the ways individuals feel comfortable protecting their wealth is through owning gold.

When asked where he sees the gold bull market at this point, Boyd stated, “I believe we are in the middle of the bull run. Here we are and some people are saying gold is a bubble, but we’ve been maintaining over the last couple of years that we don’t see a lot of new people in terms of investment conferences, particularly among non-gold people.

So that means we are still early in the game and gold still has a lot further to run on the upside. When you have assets under management, which have allocations of gold at less than 1%, that means there is still much more room for gold in portfolios and we are still not there yet.

If you look at India and China, combined they took down about 52% of the annual mine supply last year. That’s a fair chunk and that’s up from where it was several years ago. That trend is likely to grow.

When you layer on top of that, eventually, more and more investors are feeling they need to diversify and get exposure to metal, that’s when gold will just take off. That will be the last phase of the bull market and it may still be two or three years away depending on how quickly this all unfolds.

That could take the price of gold into numbers that we can’t even imagine at the moment. We always talk about silver, and silver will go along with gold. Silver did have a big run and got ahead of itself, but silver, traditionally, will follow gold higher and the upside on silver will be greater in percentage terms than it is on gold.”