“The Big Picture” for Gold “Has Not Changed”
By jturbin | November 6, 2012 6:22 AM EST
Although the price of gold has now declined for four straight weeks, its long-term outlook remains very bright, according to Agnico-Eagle Mines CEO Sean Boyd.
In a recent interview with King World News, Boyd noted that “Gold had gotten a bit ahead of itself, and we’ve seen some recent strength in the US dollar. So we are seeing some of the fast money in gold pulling out here.”
Nonetheless, he asserted that “The big picture has not changed. The big picture is still a total lack of growth in the world, with continued financial uncertainty surrounding the high levels of debt.”
The Agnico-Eagle CEO went on to say that “There has been a great deal of discussion, mostly in Europe, about austerity, but it’s not a viable option. It’s not an acceptable or palatable option to the people. This means that we will see continued stimulus and money printing. This will increase the supply of paper, which will ultimately be good for hard assets, particularly gold.”
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An increase in gold buying by central banks will also provide support for the gold price, Boyd argued. “They (central banks) clearly have an appetite for gold, and the countries with the fastest growing paper reserves are the ones that under-own gold. This is where we see a lot of the buying coming from and that’s where we’re very likely to continue to see strong demand for gold in the future.”
Boyd’s full interview with King World News is available here.