McEwen on gold
Robert McEwen, Candian businessman and Founder and former Chairman of GoldCorp (GG), serves as CEO of McEwen Mining and Chairman of Lexam VG Gold. McEwen foresees that gold will increase to about 44% by the end of 2016 and confirms a possible price range of $1,700–$1,900 per ounce.
McEwen has become increasingly optimistic on gold as global uncertainty continues surrounding sovereign debt and currencies. The upcoming US election could give further impetus to gold. McEwen even allows that in the next five years, gold could reach $5,000 per ounce, though he gave a similar outlook in 2009 and 2011.
Notably, gold futures have maintained YTD (year-to-date) gains of 23.5%, but silver has outperformed gold, rising a whopping 37.6% YTD.
Leveraged funds and mining companies
The UK’s recent Brexit vote also played a significant role in the rally of these metals. Mining-based leveraged funds like the Direxion Daily Gold Miners (NUGT) and ProShares Ultra Silver (AGQ) have risen 280% and 80%, respectively, YTD.
Mining shares that have seen the highest YTD gains include First Majestic Silver (AG), Coeur Mining (CDE), Harmony Gold (HMY), and Cia De Minas Buenaventura (BVN). These four equities have risen 254%, 407%, 262%, and 229%, respectively, YTD. Notably, AG, CDE, HMY, and BVN together make up about 6% of Market Vectors Gold Miners ETF (GDX).