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Gold of $1,000 and more during 2009 - Nick Holland, Gold Fields CEO
In an interview on SAfm @ 18:15 on 29 October 2008
[miningmx.com] -- THE gold price could hit $1,000/oz during 2009 and stay there because the industry isn't making money where it is currently, said Gold Fields CEO Nick Holland.
"If I look at where gold is today, it has actually underperformed; it's actually been disappointing. You know, when the oil price got up to $140/barrel gold didn't perform, and yet when oil comes down it drags gold down with it," Holland said of SAfm Market Update.
"So we haven't seen gold perform yet. But, having said that, we are seeing things like negative real interest rates around the globe, the supply side in gold is contracting, and I think with the credit crisis that we've got now a lot of projects that were going to go probably aren't going to go any more, because you can't do equity issuance, you can't do debt issuance," he said.
"On the demand side we are seeing physical demand at
almost record levels. So for some reason it's not translating through into gold yet," he said.
"You have leads and lags and sometimes it takes time for it to filter through. I believe gold will go through $1,000 and stay there during the course of 2009."
"I'd be very grateful with $1,000 because right now the industry at $800 - or at $764 today, I think - doesn't make any money after you take the all-in costs into account. So just to actually restore the margin and keep this industry going, we need something close to $1,000," he added.
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