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I won't be shorn, says GFMS boss
Brendan Ryan
Posted: Wed, 09 Jan 2008
[miningmx.com] -- PAUL Walker, CEO of UK metals research firm GFMS, reckons he will keep his hair on despite gold’s surge to levels around US$890.
Walker made a bet with Gold Fields CEO Ian Cockerill at last year’s Denver Gold Forum that he would cut off his shoulder-length hair and shave his head should gold reach $1,200 by the end of 2008.
"No, I don’t see me shaving my head because $1,200 is a hell of a long way off. The investment case for gold is strong and we have no problem seeing gold getting to levels around $1,000 but we think it will be very difficult for those price levels to be sustained some 12 months out," he told Miningmx.
“Gold is now very sensitive to investment demand which we believe will be favourable for up to 12 months but, after that, the investment tide will turn. You would have to see a very severe global dislocation of some form for gold to go to $1,200.”
Despite this Walker has already trimmed his locks somewhat. In Denver he said he would trim his hair should gold break through the former record level of $850 set in 1980.
Gold broke through that level early this year and Walker confirms he has had a haircut but adds that his hair is still “not that short”.
Should gold stay below $1,200 meaning Walker wins the bet
then Cockerill has to buy him a bottle of Krug champagne.
Walker comments, “I have the choice of vintage. Something appropriate to the gold price would appropriate such as 1980. It will not be cheap.”
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