Agnico CEO: Stunning Reasons Gold To Smash Through $2,000

"Today one of the top CEO’s in the world told King World News that the price of gold will break $2,000, in spite of the fact that the price being actively “managed.”  This interview is tremendous and it will let KWN readers around the world see the gold market through the eyes of one of the greatest and well-respected veterans in the business.  Below is what Sean Boyd, CEO of $5.4 billion Agnico Eagle, had to say in his powerful interview.

Eric King:  “Sean, as you know the appetite for gold by the Chinese continues to be insatiable.  Two years ago one of the top strategists in the world, Robin Griffiths, told King World News ‘Their (China’s) national reserves are probably only just over 2% in gold at the moment and they could easily move up to over 10%.’  At the time it meant that China would be adding a staggering 5,000 tons of gold to their reserves.”

Boyd:  “I always look to one key data point:  I can recall a press release from a dozen or so years ago from the Chinese government announcing the establishment of a gold exchange in Shanghai.  So clearly the Chinese have a long-term plan to increase their gold holdings.....

“The increase in gold holdings is not only for the people, but also for the People’s Bank of China.  So we are just seeing that plan play out in front of us.  We already know the It has been 6 years since we have had an update on how much gold China’s central bank possesses, and how much of their overall reserves the total gold tonnage comprises.

This is why the next update from the Chinese will be tremendously enlightening to the market.  This is about China diversifying out of U.S. dollars and it’s also all about physical gold.  We know the Chinese are long-term thinkers and this demand will continue for many years to come.”

Eric King:  “Sean, this insatiable demand from China, when will it lead to new all-time highs in the price of gold?”

Boyd:  “Last year we saw 900 tons of gold come out of the ETFs.  All of the analysis suggests that gold went to the Far East, which makes perfect sense.  But that is just one demonstration of the massive appetite for gold in China. Also, this gold came out of London vaults, went through Switzerland, was fabricated into smaller denominations, and was shipped to the Far East.  We believe there will not see that type of outflow from the ETFs, so when you take that out of the equation, 2014 must be a much stronger year for gold.

However, gold is a currency, and all currencies get ‘managed’ every day.  Meaning, like other currencies, the price of gold is ‘managed.’  But the reality is that the demand for gold and the reasons for owning gold will only get stronger in the future, especially given the uncertainty in the financial markets..."

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/9_Agnico_CEO__Stunning_Reasons_Gold_To_Smash_Through_$2,000.html