(Bloomberg) — One after another, commodities from aluminum to natural gas have surged as pandemic aftershocks rattle supply chains. Gold could be next, although for very different reasons.
That’s the view of two of the biggest names in Canadian mining — the former chiefs of Goldcorp Inc., David Garofalo and Rob McEwen — who predict investors will catch on soon that global inflationary pressures are less transitory and more intense than central bankers and consumers price indexes suggest.
When that realization sets in, gold’s inflation-protection appeal probably will send prices to $3,000 an ounce, from about $1,800 now, according to Garofalo, who ran Goldcorp before it was gobbled up by Newmont Corp. and now heads Gold Royalty Corp. Such a run-up would be a “down-payment” to McEwen’s $5,000 long term prediction.
It comes as little surprise that gold executives have a bullish bullion outlook. But they don’t often predict such a steep gain in so short a time. If other metals are any indication, the gold rally, when it comes, will be dramatic, Garofalo said in an interview Friday alongside McEwen.
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