"Our argument is that it's possible to get there and achieve those levels; it just will take a significant economic impact, from a potential second wave, for example," Louney said in an interview.
In a recent report, Goldman Sachs said it expects gold prices to follow a similar path to that in the aftermath of the financial crisis of 2008-09 -- jumping initially as rates fall, directionless for about six months after, then rising with higher inflation and remaining high for several years before falling.
"Companies are still using a relatively conservative gold price assumption," he said. "A lot of them are still planning and looking at their future development projects using lower gold prices, somewhere between $1,200 and $1,300." Merger and acquisition activity has been up, mainly among mid-sized and junior companies, and conservative attitudes are reflected in companies striking share-swap or zero-premium deals, he said.
In a June research paper, Wood Mackenzie said the global gold mining industry will need to invest about US$37 billion to create 44 new mines or mine restarts over the next five years to maintain 2019 levels of production and replace depleted mine reserves.
Watch the punters buy in this week.
Owned by China now... who seen this coming? MaximeBernier
It is a bad sign for the economy when gold prices rise.
its depressing, higher the gold prices, lower is dollar value and weakening buying power of masses
Too bad Canada sold all their gold