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Even with gold’s recent falter heading into winter and its current range-bound price, Gran Colombia Gold (TSX: GCM) Executive Chairman Serafino Iacono said gold at the $1,800 to $1,900 level has a lot of advantages.
On Friday Iacono recorded Kitco Roundtable podcast with correspondent Paul Harris, editor Neils Christensen and mining audiences manager, Michael McCrae.
In 2020 gold was not expected to do as well as it did. At the start of the year analysts at LBMA had an average gold price forecast of $1,558.8 ounce in 2020, up 12% from 2019. It was a big miss with the actual price averaging $1,769.59 ounce, an undershoot of more than $200.
Recently gold is caught in a wide trading range between $1,800 and $1,900, with the precious metal holding support but lacking momentum to move higher. As of Friday afternoon, February Comex gold futures were trading at $1,855.10, up 1.4% from last week’s close.
Iacono who founded Gran Colombia said the current precious metal price is fine with him.
“I’m very comfortable with $1,800,” said Iacono who noted that miners are still booking incredible profits, increasing dividends and paying down debt.
“It’s not that I don’t want gold to go higher. I want gold to go to $2,500, and I believe it will get there.”
Iacono said the problem with high gold prices is that “stupid mines” are built–repeating mining’s boom and bust cycle.
“I lived $1,000 gold. I never want to go through that problem again. When gold went to a thousand, I saw red stars and green stars and blue stars. So to me, $1,800 is a fantastic price because it keeps everybody honest and the mines that are going to be built–the mines are efficient.