Barrick’s Munk Says Gold Will Top $1,000 on Turmoil (Update1)
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By Stewart Bailey and Erik Schatzker
Jan. 29 (Bloomberg) -- Barrick Gold Corp. Chairman Peter Munk said gold prices will top $1,000 an ounce as investors buy the metal to guard against “uncertainty” from financial-market turmoil.
Gold is a “the obvious counterweight” to currencies, Munk said today in an interview on Bloomberg Television from the World Economic Forum in Davos, Switzerland.
Munk, the founder of Toronto-based Barrick, the world’s largest gold producer, said he has received an increasing number of calls from wealthy investors looking for ways to buy bullion.
“Do I personally believe gold will break through $1,000?” Munk said. “It’s not a question of if, it’s a question of how soon.”
Gold futures jumped to a record $1,033.90 an ounce in New York on March 17 as the dollar slid toward a record low against the euro and bank losses increased. Some investors buy the precious metal as a hedge against inflation and a haven from financial turmoil. Gold has rallied in each of the past eight years, the longest stretch of the 19 commodities tracked by the Reuters/Jefferies CRB Index.
Barrick Gold rose C$1.90, or 4.3 percent, to $45.88 at 12:35 p.m. in Toronto Stock Exchange trading. The shares climbed 7 percent last year, outperforming a 29 percent decline in the 16-company Philadelphia Gold & Silver Index.
Gold futures for April delivery gained $8.20, or 0.9 percent, to $898.20 an ounce at 12:37 p.m. on the Comex division of the New York Mercantile Exchange.
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