Gold May Hit $5,000/oz. in 34 Years: Canadian Miners

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"Demand from sovereign states, central banks and ETFs to propel gold."

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. and Goldcorp Inc. (TSX:G; NYSE:GG), told Reuters on the sidelines of the Mines and Money conference in Hong Kong on Wednesday.

McEwen said gold was in the middle of a super cycle that could end by 2015, adding that the length of the gold super cycle and the $5,000 forecast were based on historical gold prices and the ratio of the Dow stock index against gold since 1970.

McEwen founded Canada's top gold miner Goldcorp Inc. He left the company in 2005, cashing in for a little over $200 million.

He said about 90% of his personal assets were in physical gold, adding the he owned a 31% stake in Minera and a 20% stake in US Gold, both headquartered in Toronto.

US Gold mines gold and silver in the United States and Mexico. Minera has a project in Argentina.

McEwen said he believed that countries such as China, Russia and India would buy gold as part of their foreign exchange reserves.

Nick Holland, chief executive of the world's fourth-largest listed gold miner Gold Fields Ltd, said on Tuesday that the gold could hit $1,500 and the industry was not making a huge amount of money at current prices.

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