Chuck Jeannes, CEO of Goldcorp (GG), said that despite gold reaching a series of new record highs in recent weeks, there remains a “really health mix of demand growth for gold.”
In a CNBC interview, Jeannes reiterated his positive outlook on the gold market for a variety of reasons, but did not provide a specific price target for the yellow metal.
The Goldcorp CEO pointed to rising investment demand as the economic outlook in the U.S. and euro zone continue to worsen. A “recession watch” points to owning gold, he noted.
When asked by Jim Cramer if he subscribed to the theory that the SPDR Gold Trust (GLD) does not hold all of the gold that it purports to, Jeannes responded that “I don’t buy into the conspiracy theorists…I am not concerned about GLD not having the gold in the vault.”
As for physical demand, Jeannes contended that it “has been very strong,” particularly in China and India.
In Friday morning trading, shares of Goldcorp (GG) slid $1.00, or 2.0%, to $49.84 alongside the precious metals sector.