Gold may hit $5,000 an ounce in 3-4 years: Canadian miners

It's easy to discount such as a biased forecast from a gold mining CEO.

1. Rob McEwen is no fool, "Gold is used as insurance for bad governments," Rob McEwen, chairman and chief executive of Minera Andes Inc (MAI.TO) and US Gold Corp (UXG.TO).
2. The investment herd has a tendency of interpreting solid market vision as "crazy talk." Why? The herd tends to be guided by headline rhetoric that history has proven repeatedly lacks the vision to anticipate secular turning points.
3. The secular trend(s) favor this outlook.
   
   Gold, London P.M. Fixed (Gold) and Z Scores from Primary Trend (48 Month):
   
   

Headline: Gold may hit $5,000 an ounce in 3-4 years: Canadian miners

The price of gold may hit $5,000 per ounce, nearly three times current levels, in three to four years, as demand from sovereign states, central banks and exchange-traded funds (ETFs) rises, the chairman of two Canadian gold mining companies said.

"Gold is used as insurance for bad governments," Rob McEwen, chairman and chief executive of Minera Andes Inc (MAI.TO) and US Gold Corp (UXG.TO), told Reuters on the sidelines of the Mines and Money conference in Hong Kong on Wednesday.

Source: reuters.com