Monday, 5th July 2004 (2548 views)

The president of Newmont Mining Corp, Pierre Lassonde, has declared that the price of gold is at the beginning of a long-term bull run.

In an interview with business weekly Barron's, Mr Lassonde said the 'bull run' would support the company's stock, adding that a deteriorating outlook for the US dollar would underpin a "paradigm shift" that would send gold on a long-term rally.

Mr Lassonde, who owns nearly $100 million of stock, told the magazine he saw gold trading in a band of $380 to $450 per ounce and claimed that selling the dollar and buying gold was the best way to diversify away from currency risk.

The Newmont boss stated that the company's lack of gold-production hedging allows its stock to take flight when gold prices go on a tear.

Newmont's stock has moved in tandem with gold prices, which settled at $398.70 per ounce on the COMEX on Friday, Reuters news agency reports. Newmont's shares gained 2.76 per cent to end at $39.16 on the New York Stock Exchange. Newmont's stock has surged 127 per cent since 2001.

However, gold has fallen from its 2004 peak of $426 per ounce and Newmont's stock dropped from $50 to $39.

 

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