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Pierre Lassonde - Gold Correction Over, Expect $10,500 Gold
With so much worry surrounding the gold and silver markets, today King World News interviewed legendary Pierre Lassonde, to get his thoughts on what to look for going forward. Pierre is arguably the greatest company builder in the history of the mining sector. He is past President of Newmont Mining and past Chairman of the World Gold Council and current Chairman of Franco Nevada. When asked what to expect going forward for gold, Lassonde responded, “Two weeks ago I was the keynote speaker at the London Bullion Market Association Annual Meeting meeting in Montreal. Gold at the time was close to $1,900 and in my speech I said don’t be surprised to see a correction in the gold price of up to 20% over the next few months because I think it’s overdue. I didn’t know that it was going to happen in two weeks, but it did.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
September 30, 2011
Pierre Lassonde continues:
“If you look top to bottom, the gold price is down about 17%, so my view at this point is the correction in gold has about run its course, it’s about over. People don’t have to worry for one second. My eyes are focused 100% on my Dow/Gold ratio. The ratio started eleven years ago at 42 to 1 and now it is down near 6 to 1....
Continue reading the Pierre Lassonde interview below...
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“If you look back at 100 years of history, at the top of the bull market in hard assets in gold, that ratio comes back to 1 to 1. So think about the power of mathematics here, in the year 2000 it took 42 ounces of gold to buy 1 unit of the Dow, today it takes about 6 ounces of gold to buy one unit of the Dow.
The gold price has gone from $250 to roughly $1,650 today, so the gold price is up about $1,400. But to go from 6 to 1 (on the ratio), let’s say the Dow is at say 10,500, the gold price has to go from $1,650 to $10,500. So there is more left in the gold bull market than what we’ve seen over the past ten years. Am I bullish? Absolutely, 100%.”
That is what I like about the great ones, they never, ever panic. Pierre also discusses the reality of $10,500 gold, how we get there and much more. The KWN interview with Pierre Lassonde is available now and you can listen to it by CLICKING HERE.
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
