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Pierre Lassonde - Coming Mania in Gold Will Dwarf that of ‘70s

With gold over $1,600 and silver breaking back above $40, today King World News interviewed one of the greats in the gold world Pierre Lassonde. When asked about the action in gold Lassonde stated, “The one thing about the gold market right now is I think it has confounded an awful lot of the skeptics. Summers are a low period for gold price during the year and look at what you have, record high $1,600 gold in the last week and looking really good to attack the next level.”

Lassonde continues:

“So the gold market is doing well, it’s lapping up what is going on in Europe with Greece, it’s lapping what’s going on in China with inflation, and of course I don’t even have to talk about the US at this point because you all know what’s going on over there.”

When asked if strength in summer was an indication of a strong back half of the year for gold Lassonde replied, “More than likely. Come September you’ve got the Indian wedding season that starts, you’ve got the whole Christmas season inventory build-up as well as in the financial market people getting back to their desks. They look at what’s happening in the world and the September to December months are always, always the strong months for gold. So it’s looking really good right now.”

When asked if he felt mining shares were way undervalued Lassonde said, “It is (gold shares) way undervalued and this is one of the most interesting facets of the current market as far as I’m concerned. The portfolio managers for whatever reason seem to have stuck their wallets up their rear ends and sat on their hands for the past three or four months.

When you look at the average valuation of gold stocks over the last ten, twenty years and where they are today, they are like one standard to two standard deviations below what they normally trade for. Let alone in the current market they should be trading for, which is one standard deviation above the norm if not more....

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“There is a real good opportunity for people (professionals) who decide that summer is over right now and get back in the shop and do something because the valuations are still very reasonable.”

When asked about John Embry’s prediction for the HUI (Gold shares index) to double in the next six to twelve months Lassonde said, “Can his prediction for the index (HUI gold shares) double, I think he’s probably low, I think we are going to see more than that. I’m totally convinced because the gold stocks are way undervalued, so I’m looking at a very strong performance of the equities vis a vis the bullion in the next 18 months.”

When asked if the coming mania in gold will make the ’70’s run look like child’s play Lassonde responded, “Well it will because in 1980 the only players were the Americans, they were essentially the only players in the gold market, or the dominant players.

Today the dominant players are China and India, 58% of all the gold sold this year will be sold in these two countries. So they are by far the dominant players and as I’ve said the Chinese love gambling. When we reach that phase (the mania) I told you and I will tell anyone who wants to listen, watch out because it will truly make your head spin.”

Pierre Lassonde is legendary as one of the greatest company builders in the history of the mining world. He is also connected at the highest levels of many governments including China. There is so much more information in his interview about the state of affairs globally and where gold is headed. The KWN audio interview with Pierre Lassonde is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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July 22, 2011

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