Former Goldcorp Executives Expect Dramatic Gold Price Rally

Pandemic aftershocks have stressed supply chains, which has led to the surge in the price of various commodities, including natural gas and aluminum, with some believing that gold may soon experience a rally as well. Rob McEwen and David Garofalo, former Goldcorp Inc. chiefs, expect investors to realize soon that international inflationary pressures are more intense and less transitory than consumer price indexes and central bankers suggest.

Once investors do so, Garofalo expects that the inflation-protection appeal of gold will cause the precious metal’s price to move from its current $1,800 per ounce price to about $3,000 per ounce. In the long term, McEwen expects the precious metal to go $5,000 per ounce.

Garofalo was Goldcorp Inc. CEO before it was acquired by Newmont Corp. He now occupies the position of CEO at Gold Royalty Corp. In an interview last week, Garofalo stated that this gain would occur in the coming months and would be violent and immediate.

McEwen, former Goldcorp chairman and founder, stated that secondary drivers linked to disruptions in supply and the global debt and monetary expansion needed to get through the pandemic would prompt individuals to revert back to conventional methods of wealth protection. He explained that the dollar as well as other currencies were purchasing less than what they were purchasing a year ago. He noted that this would impact the value of fiat currencies across the globe.

Garofalo added that gold’s history and universality meant that it was better positioned as a hedge against an inflationary environment in comparison to cryptocurrencies. It should be noted that cryptocurrencies such as Bitcoin are viewed as great hedges against inflation because they aren’t subject to the manipulation practiced by the Federal Reserve.

In addition to this, Garofalo explained that inflation was also affecting the gold industry as costs rise and input and labor scarcities emerge. This, he said, created an additional incentive for producers to seek savings through acquisitions and mergers, after underinvestment led to reserves shrinking. He believes that royalty companies, which provide upfront payments in exchange for the right to a percentage of revenue or production, is another segment of the market that is ready for further consolidation.

Garofalo’s firm, Gold Royalty, launched its IPO earlier this year. Thus far, the company has announced three takeovers, including Golden Valley Mines & Royalties Ltd and Abitibi Royalties Inc. McEwen is a shareholder in one of the companies that Gold Royalty plans to acquire.

If the price rally that these execs refer to materializes, sector players such as Asia Broadband Inc. (OTC: AABB) are likely to benefit from that price surge.

NOTE TO INVESTORS: The latest news and updates relating to Asia Broadband Inc. (OTC: AABB) are available in the company’s newsroom at https://ibn.fm/AABB

About MiningNewsWire 

MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.

To receive SMS text alerts from MiningNewsWire, text “BigHole” to 21000 (U.S. Mobile Phones Only)

For more information, please visit https://www.MiningNewsWire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer

MiningNewsWire
Los Angeles, California
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com

MiningNewsWire is part of the InvestorBrandNetwork.

Archives

Select A Month

Contact us: (310) 299-1717