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Precious metals are not done rallying in our current economic environment, and in the next bull run, silver is likely to outperform gold said Peter Marrone, executive chairman of Yamana Gold.
“It’s difficult for me to predict where the gold price will be on a short-term basis, but as well, I appreciate there’s an element of speculation in this discussion. It’s very difficult to see in the intermediate and over the longer term, directionally, gold prices do not go to higher levels than it is today. And given the amount of monetary stimulus and fiscal stimulus in the world and likely going to increase, the amount of government debt to GDP, I’m not suggesting that this is not tolerable, I am suggesting that this is the perfect storm for gold price to go to higher levels,” Marrone said.
On inflation of operating costs, Marrone said that Yamana Gold’s guidance on costs this year does not consider inflation to get out of control.
“We’ve guided costs taking into account what we think is the inflation rate in the countries in which we operate. It is not very high levels of inflation in most countries. If we look at Chile, Brazil and Canada, Argentina’s a bit different, the inflation rate there is higher…if we look at the other countries, the inflation rate is between 2% to 4%, not anything that’s extreme,” he said.
By David Lin
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