Once GOLD get to USD$3,000 pr oz..it will Launch Like a Rocket (mania stage)

With the gold and silver markets still experiencing turbulence and the US dollar attempting to stabilize, today King World News interviewed one of the great company builders, Rob McEwen former CEO of Goldcorp and current Chairman & CEO of US Gold.  When asked how he arrived at his gold target McEwen responded,“Looking at economic history and the cycles before, the $5,000 number is a fairly easy number to get to if you look at the last cycle where gold went from about $40 an ounce in 1970 to $800 in 1980.  So, you had a twenty-fold move, and the low point for us recently was $250 back in 2001, and if you applied the same twenty-fold you arrive at $5,000.” 

Rob McEwen continues:

“You have more people in the market today than you had in 1980.  They are better connected by the internet and other communication means, and crowd psychology is going to play a bigger role.  We’re seeing the paper currencies suffering a loss of confidence and people are looking for a place to go, and when we move from that 1% invested in gold, to 3 or 4 or 5%, the slope for the price of gold is going to be exponential and racing.”

When asked when he sees that mania in the metals beginning to take place McEwen stated, “Gold and silver will have to go through a couple of price points because they are basically a barometer of the economic confidence.  I think when gold goes through $2,000 you’ll see a surge and I think that will happen around the end of this year.  And then you are going to have that again, once it (gold) cuts through $2,700 to $3,000, and then I think it’s launching like a rocket, like the shuttle.”

When asked how this cycle will play out McEwen had this to say, “If we follow the course of history, we’re going to see the value of the dollar, in terms of its purchasing power, further reduced.  Our cost of living is going to go up and that’s not good for anyone.  So we need to find ways to protect ourselves, and historically gold, silver have been one of those areas that have protected large parts of financial assets when you have monetary systems being debased by governments that are eager to try to ward off the creditors.

The QE3 is going to happen and there will be a QE4 and probably a QE5.  We’re looking at unprecedented amounts of monetary stimulation occurring not only on this side of the Atlantic, but over in Europe and it has been to stave off a collapse.  There has been tremendous loss of value, but we haven’t seen a big jump in employment and we haven’t seen a large jump in capital investments and that’s what we need to see.  

We need to more jobs created and this money isn’t doing that.  So, that’s where you go back to the government saying, ‘well, we can’t stop right now because the job is not done.’   But for every one of your listeners, while this job is being done they have to go out and protect their assets against what’s happening.”