* Gold price up 25 pct in year, hits record high
* Bulls see gold piercing $1,300/ounce barrier soon
* Soros, Greenspan weigh in on precious metal
By Steve James
DENVER, Sept 19 (Reuters) - Small wonder that gold mining executives are smiling these days.
At the annual Denver Gold Forum industry meeting this week, the talk among gold company executives and buy-side fund managers is likely to be less about rising mining costs than about just how high the price of the precious metal might go.
The gold price has soared 25 percent since the industry's get-together a year ago, and it hit a record high on Friday.
Many gold bulls seem to think the sky's the limit. Even billionaire George Soros, who has warned that gold is "the ultimate bubble," has heavily invested in gold and gold-mining companies through his Soros Fund Management LLC hedge fund.
Perhaps coincidentally, the treasures of King Tutankhamun, featuring gilded artifacts of the "Golden King" and the Egyptian pharaohs, are on show at the Denver Art Museum at the same time as the Sept. 20-22 Gold Forum.
But you don't have to be an archeologist to uncover the fact that since last year's gathering in the mile-high city, spot gold <XAU=> has gone from about $1,020 per ounce to a record high of $1,280 on Friday.
That's what a recession will do for the metal, which is traditionally regarded as a safe haven for investors in times of economic uncertainty.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a chart on the new gold price rush see
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"Gold is the only actual bull market currently," Soros said at a Reuters Newsmaker event last week. "In the present circumstances that may continue."
But Soros did hedge a little, saying, "It may go higher. But it's certainly not safe and it's not going to last forever." After asset classes set new highs, Soros observed, there are almost always immediate reversals that disappoint investors.
One closely watched industry report released last week saw gold above $1,300 this year, setting successive all-time highs, as uncertainty about economic recovery and a sovereign debt crisis stoke investment interest.
Investment demand in gold should benefit from the threat of inflation as central banks cut interest rates to battle double-dip recession and high unemployment, metals consultancy GFMS Ltd said in its Gold Survey 2010 Update.
"We could easily see gold spike comfortably above $1,300 before the year's out," said GFMS Chairman Philip Klapwijk. "Further gains in 2011 are far from out of the question."
Jeffrey Nichols, managing director of American Precious Metals Advisors, sees gold hitting $1,500 in the first half of 2011, or possibly even before the end of this year.
"Not only will prices move substantially higher in the months ahead, but the uptrend still has years to go ... with gold very likely reaching $2,000 and eventually $3,000 or even $5,000 before the gold-price cycle shifts into reverse," Nichols said.
"However, I also expect continued high gold-price volatility with big corrections along the way, so much so that some observers will prematurely declare the bull market over long before its time," he said.
Former Federal Reserve Chairman Alan Greenspan also talked gold at the Council on Foreign Relations last week.
"It is the ultimate means of payment and it is a signal that there is a problem with respect to currency markets globally. Now I don't think it's a serious problem -- unless you're short gold -- but it strikes me that it's the canary in the gold mine to keep an eye on."
With sky-high gold prices expanding profit margins, gold executives will likely focus on how their extra cash will fund future projects. In recent years, they have grappled with issues like renewing reserves, controlling costs and struggling to put projects into production.
Presenters at the Denver event, which runs through Wednesday, will include the world's biggest two producers, Barrick Gold <ABX.TO> <ABX.N> and Newmont Mining Corp <NEM.N>, which is based in Denver. South African giants AngloGold Ashanti <ANGJ.J> and Harmony Gold Mining Co <HARJ.J> are also set to be on hand. (Additional reporting by Frank Tang, Herb Lash and Ed Krudy in New York; Editing by Gary Hill)
