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Gold Prices Ready to Soar?

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    Agnico-Eagle Mines CEO Sean Boyd on the outlook for gold and the mining company’s outlook for growth.

  • Duration 5:33
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Now my next guest says that you haven't seen anything yet Sean Boyd is the CEO and president of Agnico-Eagle mines.

And he is with us live from Toronto in a Fox Business exclusive -- and -- Today -- you look really Smart having made this prediction and let's get your prediction first that is the gold will hit 3000.

Dollars a Troy ounce in what time period.

Well over the next 24 months is what we see focus -- two years now yesterday though this this call wouldn't of looked as depression because over the past four months.

Not so much why.

There's been a lot of volatility and really what you've seen as a lot of issues push back to page three and four.

Of the newspaper and the Euro has been on the front page on the issues there have driven.

The US dollar -- -- you've seen some volatility but in our view the die has been passed.

Deleveraging is under way one of the most effective ways to do that ensure that -- growth along the way is to print money.

And I think that's where we're headed and we look at the gold price now is being equivalent to what it was in late 2008 when it was seven or 800 dollars.

So -- of 16100 we could see a doubling over the next 24 month.

OK let's look at your stock very tough to find any green on the screen for individual names.

Eight per -- to the upside right now it's been a terrific state for you guys.

Not a great year -- down about 41%.

Over the past year but you see a very nice spike today.

Let's talk about the issues facing your company why is -- been such a rough year we've talked analysts who say that you made an acquisition that didn't end up being so Smart because it's.

In Canada and it's more expensive to mine out of Canada and that you have to sort of swallow that one but how do you turn this story around.

We've already begun to do that and I think we've been one of the best performers since the beginning of this year.

We had a really strong first quarter all five of our minds actually did better than they did a year earlier -- so.

The rebound is underway and I think if we look generally.

At the gold equities were trading as a group at -- store.

Low levels relative to bullion.

Relative to traditional multiples and I think that's the big opportunity I think goals gonna -- -- But I think the equities are gonna prone to perform even better.

And gold.

Over the next 24 months I know that you have to be under rocket -- know what happened with our jobs data today it looks absolutely awful is your company hiring right now on itself for what types of jobs.

What we are we are growing and we're actually building two mines -- in the Canadian north and one in Mexico so.

When you actually look at the gold business.

It really I've been -- 27 years our business is actually never been better.

But it's certainly not reflected in the valuations.

-- stock -- the other gold industry Europe players so.

We think that's a huge opportunity.

It's a great business with a great margins we think those margins will grow.

Over the next 24 months we think it's a place to be if you're looking to protect what you have.

And to get paid really solid return.

Let me throw at you what a lot of people say who are against Goldman Warren Buffett for example and and Charlie hunger Berkshire Hathaway they like stocks they don't understand why people invest in physical gold.

They say it doesn't do any -- out what is your answer to that.

While the alternative is gold is now trading as money.

And so we're going under through a deleveraging process -- we think the way out.

We can see it in the voting we've seen in some of the major elections people don't want austerity.

They want growth governments are going to be forced to print money -- liquidity in.

-- stimulus.

That's gonna undermine and to based paper currencies gold is going to be an increasingly.

More comfortable place to -- the next -- Going back to what my dad put programs in the wall because he was worried I mean and that this -- a very sort of World War II air way of thinking and and he was always -- the Nazis were gonna somehow come back into America and and the only thing that they would take to save her life as a bar of gold ore or gold coin.

-- -- -- really what we've come to at this point.

We don't even have to get there we're just looking at.

An asset class that has done extremely well over the last several years we can take our performance over twenty year period.

Which is far superior than the S&P 500 -- a period in the gold price.

Through 1989 to 2009.

So gold has actually done extremely well over the last twelve years and we think.

-- just in the last half of the second phase of this bull market and we still haven't seen.

Not a real move towards gold yeah.

Yet and I know that you watch what's happening in Europe very closely but if somehow the Germans organize a solution of some sort OK so they come up with the Euro bond in some.

Bizarre form.

And suddenly markets rally and gold plummets are you ready for that possibility and for your company to endure that.

I think everybody's been looking for the magic solution which -- been promised over the last few years we still haven't seen that I don't think there's a magic solution.

I think the way out of the debt issue.

Is for politicians and central bankers to print gold I think they realize that all they'll talk all -- -- talk austerity we haven't really seen much austerity.

And we need growth and you can't continue with those types of employment levels particularly among youth and in certain countries in Europe.

We need growth we need growth now and I think that's what's going to happen.

Well at least your capitalizing on the have numbers today with your -- looking very healthy at the moment Sean thank you for joining us you're welcome Sean Boyd is the CEO and president of --

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