"There's so many things that impact the short-term movements in gold price, whether it's, you know, the risk on/risk-off trade moving from gold ... into equities, which we've seen in the last couple of months," Goldcorp CEO Charles Jeannes tells CNBC in a Feb. 15 interview.
"I tend to focus on longer-term movement, and I am still very bullish on the long-term fundamentals of gold, but there's no doubt that there's a bit of a move out of the safe-haven portion of the investment in gold, and we've seen that certainly this week. ...
"On the supply side, there's the fact that it's getting harder and harder to find and build new mines worldwide. I think you're going to see very flat supply over the next two, three, five, 10 years and even declines in supply over that period of time, so if you then look at the demand side, it's been driven by two primary features: 1) the rise of the Asian economies and a tremendous amount of growth in physical demand from China in particular over the last five to 10 years, and then the other side is investment demand, and that has come up dramatically over the last 10 years, and it tends to be much more quick in moving in and out of the story. ...
"I think it is an inflation hedge and absolutely. The currency war is very interesting because it depends on which currency is winning at the time, frankly. Gold is priced in U.S. dollars, so right now the U.S. dollar is seeing strength against the yen and the euro so we're having a positive -- sorry, a positive impact on the dollar and negative on gold. That has turned and can turn around very quickly, but, again, it's your long-term view, whether it's Marc Faber or someone else in terms of how you believe the ultimate solution to extremely high debt levels worldwide is going to be resolved, and -- and there's, you know, a good argument that says the only way it's going to be resolved is through inflation."
"I tend to focus on longer-term movement, and I am still very bullish on the long-term fundamentals of gold, but there's no doubt that there's a bit of a move out of the safe-haven portion of the investment in gold, and we've seen that certainly this week. ...
"On the supply side, there's the fact that it's getting harder and harder to find and build new mines worldwide. I think you're going to see very flat supply over the next two, three, five, 10 years and even declines in supply over that period of time, so if you then look at the demand side, it's been driven by two primary features: 1) the rise of the Asian economies and a tremendous amount of growth in physical demand from China in particular over the last five to 10 years, and then the other side is investment demand, and that has come up dramatically over the last 10 years, and it tends to be much more quick in moving in and out of the story. ...
"I think it is an inflation hedge and absolutely. The currency war is very interesting because it depends on which currency is winning at the time, frankly. Gold is priced in U.S. dollars, so right now the U.S. dollar is seeing strength against the yen and the euro so we're having a positive -- sorry, a positive impact on the dollar and negative on gold. That has turned and can turn around very quickly, but, again, it's your long-term view, whether it's Marc Faber or someone else in terms of how you believe the ultimate solution to extremely high debt levels worldwide is going to be resolved, and -- and there's, you know, a good argument that says the only way it's going to be resolved is through inflation."
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