Newmont CEO – China Doing Everything It Can to Get Gold
May 29, 2012
Today the CEO of Newmont Mining, one of the largest gold producing companies in the world, told King World News that China is doing, “everything they can to assemble a bigger gold portfolio.” Richard O’Brien, the CEO of $24 billion Newmont Mining, also said, “I believe inflation is going to rear its ugly head.” But first, when asked about China’s insatiable appetite for gold, O’Brien responded, “Obviously China is now both the world’s largest producer of gold, as well as the largest consumer of gold. Not one ounce shows up as legally leaving China. I think that’s a strong statement that the Chinese people and the Chinese government are looking to hold on to and expand their holdings of gold over time.”
Richard O’Brien continues:
“It makes sense. They have the most exposure to the US dollar. They know what I know about the US dollar. So they would like to have gold because it generally trades negatively correlated to the US dollar.
How they get that exposure is a really interesting question because as soon as they broadcast that they want more gold in their portfolio, gold prices will go up just because they said that because the market is so thin….