Cryptocurrencies could be ‘just mining the public:’ gold mining CEO

Cryptocurrencies could be 'just mining the public:' gold mining CEO

Cryptocurrencies like bitcoin may be all the rage, but when it comes to storing your money, Agnico Eagle Mines CEO Sean Boyd told CNBC that they still pose some unaddressed risks.

“One of the things about bitcoin and the cryptocurrencies is, is there really an unlimited supply?” Boyd said to “Mad Money” host Jim Cramer on Thursday. “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?”

Boyd, also the vice chairman of Agnico’s board, echoed some technicians’ sentiments that gold prices are turning and could be headed higher.

The CEO said that more and more investors who meet with Agnico on a regular basis are once again warming up to gold and could have a hand in driving it 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,” Boyd said. “We wouldn’t be surprised to see gold between $1,400 and $1,500 within the next 18 months or so.”

With a strong gold mining business in Mexico and healthy “geological upside” ahead, Boyd told Cramer that he and his colleagues at Agnico predict that production could increase by 25 percent between now and 2020.

And for investors seeking stable investments to manage potential risk, few are better than gold — especially not cryptocurrencies, the CEO said.

“Gold’s a highly developed market, very liquid market, a very efficient store of value and portfolio diversifier. That’s why you need to own it,” he said. “It’s proven itself. It’s hard to believe it’s going away just because of technology. People can invest in cryptocurrencies, but now’s the time to own gold. If [the] stock market’s setting record levels, I’d rather own gold than bitcoin.”

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