You are here
Invest so that you''re insulated against a rapidly depreciating currency
Goldcorp CEO McEwen: Gold To Hit $850 An Ounce
By Heather Draper
Dow Jones Newswires
Tuesday, September 28, 2004
DENVER -- One of the gold industry's biggest bulls
believes gold prices will hit at least $850 a troy
ounce within the next few years.
Goldcorp Inc. Chief Executive Rob McEwen said
"gold is money" and warned that the ballooning U.S.
budget deficit and inflated real-estate market will
continue to eat away at the value of the U.S. dollar,
which will make more investors turn to gold.
When investor confidence disappears, McEwen said,
"paper money eventually returns to its intrinsic
value, which is zero."
McEwen was speaking Tuesday to mining analysts
and executives at the Denver Gold Forum, an
invitation-only industry conference.
He said Goldcorp is holding back 30 percent of its
gold production because the company believes gold
prices will go much higher.
McEwen, the largest individual shareholder in
Goldcorp, said earlier this month that he is planning
to leave his post as chief executive of the
Toronto-based intermediate-size gold producer. He
plans to step down as soon as a successor is chosen.
He has been with Goldcorp for 18 years.
"Business literature is filled with examples of people
who stayed too long," McEwen told the gold forum
audience. Goldcorp needs a manager with a different
skill set to meet its future needs, he said.
The ideal candidate, McEwen said, is aware of the
market and knows how it operates, has innovative
approaches to mining, and "has spent a year and a
half at Toyota."
An outside perspective will help Goldcorp leave its
"rivals in the dust," he said.
As if backing up McEwen's higher gold price prediction,
gold futures hit a five-week high on Tuesday of more
than $414 a troy ounce after oil prices spiked and
created more uncertainty in the market.
Also sending gold prices higher was a revised gold
reserves forecast Tuesday by Newmont Mining Corp.
The Denver company said its gold reserves in Ghana
should go up 33 percent, or 4 million ounces, this year
to 16 million ounces from 11.9 million last year.
Goldcorp on Monday declared its tenth regular monthly
dividend payment for 2004 of 1.5 cents per share. The
company plans a total annual dividend payment of 18
cents a share in 2004.
McEwen said the company is cash-rich and debt-free
but because it is holding back 30 percent of its gold
production its earnings are lower than they might have
been. But he said he is so bullish on the price of gold
that he'd be holding back 100 percent of gold production
if Goldcorp were a privately held company.
Goldcorp shares traded recently at $13.48, up 46 cents,
or 3.53 percent, on volume of 1.12 million. Average daily
volume is 1.14 million.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kuik.com/KH/KH.html
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
Subscription site:
http://www.lemetropolecafe.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
