Munk certain where gold is going

Peter Munk does not consider himself a gold bug, and is always reluctant to forecast prices. But based on his recent comments, it is clear he still thinks gold is heading in one direction: up.

Speaking at the Bloomberg Canada Economic Summit, the founder of Barrick Gold Corp. referred to the period from 2000 to 2011 as the “age of uncertainty” in which the world has bounced “from one disaster to another.”

Gold closed higher in every one of those years.

“The only thing that was there [for investors] was gold,” he said.

He said the world still has not found solutions to its major global crises, leaving more uncertainty for the future. For example, he cited the bailouts of debt-laden European countries as “Band-Aid” solutions.

While Mr. Munk is certainly bullish on gold, other industry leaders are much more outspoken. Speaking at the same conference, Goldcorp Inc., chairman Ian Telfer said gold will reach US$2,000 an ounce by the end of the year.

Mr. Munk also addressed Barrick’s recent $7.3-billion takeover bid for copper miner Equinox Minerals Ltd., a move that surprised many of his shareholders. He said finding accretive gold acquisitions big enough for Barrick is extremely difficult, and that the cash flows provided by Equinox will help Barrick develop its gold prospects.