Gold Miner Says Gold Manipulation is Real, Gold Plunge Inconceiveable
The Founder and CEO of gold and silver miner McEwen Mining, Rob McEwen was very candid on a recent conference call with his investors. McEwen discussed his compay's abysmal quarterly performance and went on to leave several points of perspective. Chiefly, that if the gold and silver price were to continue a downward projection his company and industry would have no choice but to halt production and mining.
For one thing, he shed some light on what will happen to his company if the gold price falls further. He said, “if [the gold price] got down to $700 an ounce, would we survive? We would, but we wouldn’t be producing any metal … at $700 gold, we and the rest of the industry would be probably closing 90 percent of the gold mines in the world. And silver mines.”
That said, he was quick to reassure listeners that he “can’t conceive” of such a drastic price fall, also noting that given his “large investment in the company” — McEwen owns 25 percent of his company’s outstanding shares — his “interest is to protect [his] investment and [shareholders'] investment and grow it, not just sit on it.”
McEwen also touched on London Metal Exchange price fixing, another concern brought to him by shareholders, though he simply noted, “I don’t have a lot of comments on that. It’s in the hands of the regulators.”
He had more to say about potential central bank manipulation of the gold price, commenting, “they probably are manipulating it, but they all have a mandate to manage their currencies. So they’re operating with tools and legislation that allow them to adjust the price of various commodities and other financial instruments in a manner that they feel is best suited to preserve their currencies.” That might sound disheartening, but according to McEwen, it won’t last forever. “If you look to economic history, they can keep it going for awhile, but forever? Never,” he asserted.
Similarlly, While America enjoys a temporary respot from high fuel prices, OPEC & Russia are moving fast to reduce oil supply to bring equilibrium to the market and increase prices. As oil producing nations will not continue to sell oil into a market that has too much supply driving their profits down, neither will gold and silver miners continue to mine metals unprofitably. McEwen, beleives strongly that price fixing is unsustainable and that logic is growing louder and louder in the investment world.