Loading ...Gold will likely soar to a record within five years as asset bubbles pop in everything from bonds to credit and equities, forcing investors to find a haven, according to Old Mutual Global Investors’ Diego Parrilla.
Parrilla joins a slew of investors who are bullish on gold because of low borrowing costs and central-bank bond buying. Billionaire bond-fund manager Bill Gross has said there’s little choice but gold and real estate given current bond yields, while Paul Singer, David Einhorn and Stan Druckenmiller have all expressed reasons this year for owning the metal.
Gold Bull McEwen Sees Prices as High as $1,900 by End of Year.
Gold “is a currency that doesn’t have a liability attached to it,” McEwen said Tuesday in an interview at a gold conference in Colorado Springs. “A store of value that has gone for millennia. And the big argument against gold used to be it costs you money to store it. Right now, it’s costing you money to store your cash.”
In 2000, he launched an audacious experiment when he was at Vancouver-based Goldcorp. Offering $575,000 in awards, he threw open to the public more than five decades of proprietary data on the company’s under-performing Red Lake mine in Ontario and challenged geologists to locate the next 6 million ounces of gold.
Red Lake ended up becoming one of Goldcorp’s richest gold mines, producing more than $3 billion worth of the metal, he has said.