U.S. Gold’s McEwen forecasts $2,000/oz gold price by 2010

Master gold mining marketer and entrepreneur Rob McEwen, Chairman and CEO of U.S. Gold, said he believes gold will easily hit the $2,000/oz mark by 2010.

RENO, NV - 

Mining entrepreneur Robert McEwen, Chairman and CEO of U.S. Gold Corp., declared Wednesday that he expects gold prices to rises to at least $2,000 by 2010.

During an interview with Bloomberg television Tuesday, McEwen advised investors to buy gold bullion and gold stocks.

Through U.S. Gold (AMEX, TSX: UXG), Goldcorp founder McEwen plans to invest $50 million to develop mining properties in Nevada. He is the largest shareholder of the exploration junior, which has acquired several companies exploring on Nevada's Cortez Trend including White Knight, Nevada Pacific Gold and Tone Resources.

As evidence for his assertions, McEwen noted that less gold is being mined, and it is "costing more to produce it." Only large central bank sales could potentially derail gold prices, he explained.

While higher gold prices are expected to impact the level of use of gold in jewelry, McEwen suggested that investor interest in gold funds, gold stocks, and gold bullion will compensate for the loss in jewelry manufacturing. Meanwhile, McEwen advised that he anticipates that China will buy more gold.

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