Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Gold is in a solid position to rally to $5,000, says the CEO of McEwen Mining Inc. The mining authority views mounting debts, both public and personal, as generating interest in the yellow metal as fiat currencies lose value.
The trade rifts opening up between the US and the rest of the world further boost the appeal of gold, too. Additionally, Rob McEwen underscores the positive influence of mining challenges on the rally.
Debt Crushes Fiat Trust
In an interview with InvestingNews, McEwen cited monumental debt levels as a singular driver behind gold’s rally. This unsustainable debt accumulation is fueling an exodus from fiat currencies, and gold is the beneficiary.
- Government: The US national debt of $36 trillion accounts for more than 10% of global debt, which stands at $312 trillion.
- Corporate: America’s nonfinancial corporate debt landed at $13.7 trillion in 2024, nearly eclipsing economic output.
- Personal: US household debt peaked last year at $18.04 trillion, a nearly $1 trillion jump from the previous year.
“The government keeps printing money and debasing currencies. I think the world is seeing that paper currency just isn’t buying much, and they’re saying, “’What do I buy to protect my purchasing power?’”
Trade Tensions, Golden Outcomes
Tariffs targeting precious metals became a major concern for gold investors at the start of 2025.
Although gold itself appears to be largely shielded from the direct impact of these sweeping import taxes, McEwen points out that the mining sector won’t emerge unscathed.
Related materials and equipment used in mining are affected, raising operational costs and driving up the overall price of production.
While this creates challenges for gold producers, it also contributes to upward pressure on gold prices, benefiting the metal’s market value.
Supply Side Pressures in the Mining Industry
Generally, the gold supply has been able to keep pace with a steady rise in demand, but some experts anticipate a growing imbalance. As an industry leader, McEwen has offered unique insights into the obstacles facing the extraction, sourcing, and production of the yellow metal:
Geopolitical Fragmentation
Diplomatic ties that once seemed stable are starting to fray as years-long wars, new trade conflicts, and rising isolationism reshape the global order. This has serious implications for gold production and distribution, as much of the world’s gold supply comes from a small group of countries, including Russia, South Africa, and other geopolitically problematic nations.
Labor Shortages
The mining sector is struggling with widespread labor shortages, fueled by a growing knowledge gap and poor public perception. At some major mining firms, turnover is nearing 30%, according to McEwen. With fewer skilled workers available, companies are forced to raise wages, pushing up operating costs and the price of the final product…gold.
Tight Restrictions
Even when projects are otherwise ready, a dense web of bureaucracy and evolving environmental regulations can delay or derail production. These shifting requirements make it difficult for mining companies to assess investment needs, adding uncertainty and inflating costs.
These mining and geopolitical challenges could represent a major price tailwind to gold in the near to long-term.
“I’m Happy With $5,000”
When questioned about his outlook on prices, McEwen answered frankly:
“Right now, I’m happy with $5,000…[but] I have some friends who are suggesting it’s going much higher.”
This upbeat forecast places the mining veteran in a steadily growing class of experts pinpointing $5,000 gold as the next target.
The CEO sees gold demand rising on the heels of geopolitical fragmentation, economic uncertainty, and entrenched mining challenges, leading to a 43% surge in the medium to long term.