Munk: Gold's Outlook Is 'a hell of a lot more positive than anything else'
Source: Mineweb (10/31/08)
"The one thing that we have all learned from this crisis is the almost flawless correlation...the inverse correlation between the U.S. dollar and gold," Barrick Chairman and CEO Peter Munk asserted.
We have never seen such volatility. We have never seen such dislocations. And in fact we have never seen such turmoil," Munk said.
"If ever there was an expectation for gold to shine, we could not have imagined a more suitable, global macroeconomic climate than what we have seen over the last 90 to 120 days," he noted.
Nevertheless, Munk admitted, "You have to be disappointed-just like we are-that, despite the external factors falling in line with all the guys who predicted Doomsday and gold going to $10,000 an ounce, Doomsday has almost arrived. Certainly we are on the precipice a number of times. And gold grows slowly." As hundreds of institutional funds sold their gold holdings to cover stock losses, Munk noted that the pressure on gold "was absolutely unprecedented. And, that, I think, really explains why gold never really fulfilled its promise."
"The one thing that we have all learned from this crisis is the almost flawless correlation...the inverse correlation between the U.S. dollar and gold," he asserted.
Despite gold's current wild ride, Barrick retains an "exceptionally positive view" on gold, Munk declared.