Gold Will Top $2,000 in Next Year: Barrick CEOSubmitted by emalvini on Wed, 09/12/2012 - 11:45
With more Federal Reserve stimulus coming and central banks around the world turning into buyers, gold prices have room to run higher, Barrick Gold CEO Jamie Sokalsky told CNBC’s “Squawk on the Street” on Tuesday.
The new CEO of the world’s largest precious metals miner is optimistic about the outlook for gold prices, saying, “Gold could definitely surpass previous highs and go above $2,000 and even higher in the next year.”
Barrick [ABX] has great leverage to higher gold prices, with every $100 increase in the price of gold adding an additional $500 million to earnings and cash flow, Sokalsky noted.
But gold mining stocks have failed to keep pace with the increase in the precious metal of late. Sokalsky said the industry needs to have more discipline in terms of how capital is invested. “We can’t just rely on gold prices to drive our earnings,” he said.
Read more: http://www.cnbc.com/id/48988807