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Thursday, 6th April 2006 (9411 views)

Paul Dowd, the managing director of Newmont, claims the record gold prices around the globe are partly due to rising oil prices and escalating inflation.

After breaking the $600 an ounce barrier last week, gold has fallen back slightly to around $592 but the general trend has seen prices soaring over $150 an ounce in just over a year.

Mr Dowd declared that as gold was a "natural haven against inflation", it made sense that investors were looking to put money into the precious metal in order to secure value for the long-term and he believed this would only drive the price up further.

"It is our belief…that the gold price has a long way to go yet," he explained.

"Not only is it becoming the investment of choice but people are getting into gold for a number of factors – but none more so than demand is exceeding supply from mine production."

Newmont is currently in the preliminary stages of redeveloping a gold project in Boddington, Western Australia that originally ceased mining in 2001.

The company hopes the project will commence construction in June this year, with commission of the venture expected by the end of 2008.

 

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