A number of senior gold mining executives claimed yesterday (September 10th) that they are still bullish about the long-term prospects for gold.
Gold prices reached a high of $1,033 per ounce in March but have cooled in recent weeks, mainly as a result of speculative liquidation and a rally in the US dollar.
However, with global output continuing to slide, inflation rising around the world and the instability of the US financial structure, many experts have explained that gold investment is still a sound long-term strategy.
Speaking at the Denver Gold Forum, Kevin McArthur, president and chief executive of Goldcorp Inc., the world's second largest gold miner by market value, commented: "We believe the gold price will turn around.
"We believe we are in a correction. We are surprised by the quickness and amplitude of this correction. But we believe we're going to see gold over $1,000."
Mr. McArthur also pointed out that gold could well be in the middle of an extended bull run, with the possibility that it could hit $1,500 per ounce in the coming 18 to 24 months.
Richard O'Brien, president and CEO of Newmont Mining Corp., also suggested that it is "reasonable" to expect gold prices to hit between $1,300 and $1,400 in the next year or two.
"We're gold bulls over the long run. There will be downs, but I do think over time, we'll continue to see a stronger market," he said.
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