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“Bullion prices are supported on the physical side by environmental and social restrictions to supply and strong demand led by India and China, and on the financial side by the U.S.’s limited scope to increase interest rates, according to Cia. de Minas Buenaventura SA. The New York-listed shares in Latin America’s biggest home-grown gold miner have tripled this year, outperforming all members of an index of large producers in the same span.”
““In the long-term I have no doubt that the gold price will continue rising,” Chief Financial Officer Carlos Galvez said in an interview in New York Monday. “It’s increasingly hard to replace reserves. There haven’t been any world-class discoveries over the past 10 years.”
“Echoing comments by former U.S. Treasury Secretary Lawrence Summers before the last Fed meeting, Galvez said the U.S. economy is too weak to start increasing rates. That creates an opportunity for gold, he said. Even a 25 basis point hike later this year would amount to “a joke” after so much debate on the subject, Galvez said.”