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Incoming Goldcorp CEO doesn’t expect metals rebound in 2016-The 17th China(Guangzhou)Int’l Metal &Metallurgy Exhibi
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12/31/2015 Metal &Metallurgy expo |
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The Globe and Mail reported that gold’s persistent weakness isn’t over yet, according to the incoming chief of the world’s most valuable gold miner. Mr David Garofalo, who takes over as chief executive officer at Goldcorp Inc in April, says the precious metal is still emerging from the end of a long period in which it benefited from interest rates that declined to near zero.
He said “Right now, gold prices reflect the reality that real interest rates have nowhere else to go but up. Gold prices over the next couple of years may struggle because of the reality of the interest-rate environment.”
The executive, a former winner of the Northern Miner’s Mining Person of the Year award, emphasized that he remains very bullish on gold in the medium to long term.
However, his wariness about what the next year or two may hold isn’t restricted to just precious metals. He said that base metals such as copper and zinc are also under pressure. He said “I wouldn’t think there will be a rebound in 2016 to be honest with you. Particularly in the base metals space, we probably have got a couple of years of grinding ahead of us.”
Gold, which pays no dividend, shines as a store of value when other investments also produce no yield in real, or after-inflation, terms. However, it loses lustre as competing assets begin to offer higher payouts.
-metal&metallurgy-The
17th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
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