By MT Newswires, June 14, 2013, 09:21:38 AM
John Ing, President and CEO of Maison Placements Canada Inc., today talked up the positives around gold stocks and said he still thinks the metal will reach US$2,000 this year.
"The gold stocks appear to have discounted everything but the kitchen sink and a lot of them are down 40-50%. You have to look and see if those factors are in existence," Ing said on Canada's BNN TV this morning.
"All of the grandiose projects have been shelved, that is a good thing. Costs have come down, that is a good thing. In some cases margins have even widened, and that is a good thing."
Ing said there is an atmosphere of "mea culpa" in the industry after a period of growth for growth sake through acquisitions. Investors have told them that, he added.
When asked what are the catalysts that can help gold turn around since there are no inflation fears out in the market place, Ing said while there is no financial panic out there now, there will be. He cited the debt ceiling talks in the Fall.
Ing said gold rose in the last decade despite there largely being no inflation fears. "What has driven gold is the quantative easing and that is going to continue...and, yes, I still think US$2,000 this year will happen," he said.
Read more: http://www.nasdaq.com/article/sector-update-john-ing-still-sees-gold-reach-us2000-this-year-cm253172#ixzz2WNBIz66r
No comments:
Post a Comment