Newmont Mining Corp feels that the price of gold may reach $2,300 by 2012. The Chief Executive Officer of Newmont Mining, Richard O’Brien said that the turbulent financial markets will see investors buying gold as a hedge.
Richard O’Brien said they were going to continue to be in a bullish gold-price environment for the next five to seven years. It was going to take that long for people to get their fiscal house in order. He was giving an interview at the 2011 Denver Gold Forum in Colorado Springs.
The price of gold has gone up 25% this year and Newmont Mining has made good on this with an increased production of 7.9%.The shares of the Denver based company are at a record $69.70 which is an 18% increase since the low in March this year.
In April the company which is the second largest producer of gold in the world, even announced that it was going to link its dividends with the price of gold. This was a bid to attract investors and it sure seems to have worked.
Newmont Mining is not the only company which thinks that gold prices will continue to rise. Chief Executive Peter Marrone of Yamana Gold said that he was a big believer that all of the ingredients for a higher gold price are there: geopolitical risk, economic uncertainty, inflation. It seemed to him natural for gold prices to go to substantially higher levels.
Kinross Gold CEO Tye Burt said that the conditions for gold right now have never been better. He added that not only was it a safe haven for investors and offers a unique alternative to currencies, but the fundamentals of supply and demand were extremely strong.