Bitcoin investors will crawl back to gold when crypto-craze uncertainty creeps in

London (Jan 1)  The hype around digital currencies like bitcoin may have stolen a chunk of the demand for gold, but the precious metal has proven itself a liquid and efficient investment, according to Agnico Eagle Mines CEO Sean Boyd.

“I actually think you can build a much stronger case for gold in an environment where bitcoin is drawing this kind of investor interest,” Boyd said, highlighting unaddressed risks, still posed by virtual currencies.

Boyd’s Agnico Eagle Mines is a Canadian-based gold producer with operations in Canada, Finland and Mexico and exploration and development activities extending to the US.

“One of the things about bitcoin and the cryptocurrencies is: is there really an unlimited supply? We're gold miners. We mine deposits. I think, over time, the question will be: are these cryptocurrencies and the developers of these cryptocurrencies just mining the public?” the mining boss told CNBC.

According to Boyd, investors meeting with Agnico on a regular basis are more and more open to gold, and their interest can drive the traditional asset higher.

“Our sense is that investors are starting to do their homework, revisiting the high-quality gold equities, so there is a sense that gold's about to turn here. We wouldn't be surprised to see gold between $1,400 and $1,500 within the next 18 months or so,” he said.

RTQnews