King World News has released a new podcast with Pierre Lassonde.
Mr. Lassonde is one of the world's most credible and successful gold speculators. He built the original Franco Nevada and is currently Chairman of Franco Nevada Corporation, a seven billion dollar gold royalty company. He was previously CEO of Newmont Mining, the United States's largest gold miner. Mr. Lassonde is a Director of New Gold and a past Chairman of the World Gold Council.
Lassonde spent the summer in Europe, he told King World News, where he witnessed a contracting economy everywhere he went.
Shopkeepers and taxi drivers in France tell him business has fallen 10-40% this year alone. The situation is no better in Germany, Spain, Italy and Portugal, Lassonde added.
"What are they going to do, if not devalue?" Lassone asked the interviewer rhetorically.
Europeans aren't the only ones in trouble, said the mining legend.
"When you the look at the money printing being done around the world, about 15% per year plus, and the growth in the gold assets, which is about 1.5% per year. You've got to think that over a period of 5-10 years it's going catch up with the gold price big time. That's why I like gold."
While it was the Americans who drove the precious metals during the 1970's bull market, Mr. Lassonde thinks it's the Chinese turn now.
"The Chinese love gambling. I think the gold exchanges in Shanghai and various other places are going to end up being a bit like Casinos and I think that you're going to see prices that will spin your head... That's where the ultimate price of gold will be decided."
China and India already account for more than 50% of global gold demand annually, Mr. Lassonde noted.
In his personal account, Lassonde has been buying shares in Kinross Gold recently. "At these prices it's not trading anywhere near Net Asset Value at $1250 gold," he told the interviewer. Lassonde also offered an update on his stable of companies, Franco Nevada, New Gold and Olivut Resources, in the roughly 20 minute audio interview (link).
When asked what would be the tipping point to send gold prices higher, Mr. Lassonde offered a succinct response.
"It's when the printing of money starts to manifest itself through velocity and then you start to see inflation perk up. That or the bond market stops... We're not going to lend you anymore money. You're done. You're bankrupt. Imagine if that happened to Italy. That's a $2 trillion bond market."
Click here to listen to the interview and thanks to King World News.
3 thoughts on “Gold’s Rise Will Make Your Head Spin, Says Mining Legend Lassonde”
Believe it or not, the situation is MUCH better in Germany…
But sure, it sounds good telling people that things fall apart everywhere.
I just came back from a 10 days business trip in Western Europe and it is bad everywhere
Yes, inflation requires velocity. Velocity, however, requires further acceleration of growth, which requires a stronger $USD and as a result, higher rates, otherwise we simply remain in a cash bubble with stagnant growth and low inflation. Gold has more downside risk than upside
Comments are closed.