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Pierre Lassonde - Gold & Central Banks Fearful Of A Depression
Today legendary Pierre Lassonde startled King World News by warning, “When you talk about the worldwide slowdown, the central banks are worried about a depression, and that’s why they are printing all of that money.” KWN has been reporting for some time now that the global economy has been rolling over, but Lassonde took it a step further.
Lassonde is arguably the greatest company builder in the history of the mining sector. He is past President of Newmont Mining, past Chairman of the World Gold Council and current Chairman of Franco Nevada. Lassonde is one of the wealthiest, most respected individuals in the resource world, so we take his warning very seriously.
But first, Lassonde had a great deal to say about the gold market: “I was very surprised in the summer that gold didn’t break the $1,500 level. I say that because Europe is really going into a recession, and I felt the lows were going to be breaking the $1,500 (level). But you know what saved the gold market? The central banks.”
© 2012 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 This material may not be published, broadcast,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 26, 2012
Pierre Lassonde continues:
“The central banks came in and bought almost 150 tons of gold in June and July, and the gold market never looked back. It was very stable, and it built from there. From here on in it’s very simple, when you look at the Federal Reserve, with QE3, when you look at the ECB with their OMT, it should be OMG, for ‘Oh My Gold,’ because they are essentially going to be monetizing Spanish and Italian debts.
When you look at the Japanese Central Bank, they just announced their own QE3 program. It’s essentially all of the central banks around the world printing money. So what do you think gold is going to do?....
Continue reading the Pierre Lassonde interview below...
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“It’s going to keep on going up.
Don’t be surprised to see $2,000 gold in the next six months. I would not be surprised at all. Ultimately, my view is that we are looking at a 15 to 20-year bull market in hard assets. Mostly (in) gold, if we want to be specific. We are in year 12, so we still have quite a few years to go.
I do believe that every one of those bull markets has had a mid-cycle recession. I think that when you look at the metals index, not when you look at gold, but when you look at the metals index, we have entered that mid-cycle recession.
Iron ore-prices are down from $180 to $85. You look at just about every metal and the whole index is down. The only metals and commodities that have held up better than expected are copper and oil. That being said, I think we are in a mid-cycle recession. So we are going to have to be a bit more patient in terms of what do we expect over the next year or two from a level of around $2,000 (for gold).
So I think for the next 12 months one will have to be patient. The gold price is well supported. The central banks are there. They are buying. When you talk about the worldwide slowdown, the central banks are worried about a depression, and that’s why they are printing all of that money.
The long-run, we all know it, it’s going to come back to bite them. The way it will come back to bite them is through inflation. When you start to see inflation starting to get imbedded in food prices, wage increases, that will be the start of the final bull run in gold.”
This is an incredibly timely and important interview with Lassonde. The above portions are just a small part of Lassonde had to say. He tells King World News listeners exactly where we are in the gold market, mining shares, and what to expect going from this pull back and going forward. The KWN interview with legendary Pierre Lassonde is available now and you can listen to it by CLICKING HERE.
© 2012 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.
The interviews with Rick Rule, Nigel Farage, Ben Davies, Dr. Keith Barron, Jean-Marie Eveillard, Bill Fleckenstein, and Egon von Greyerz are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included and Felix Zulauf, Rob Arnott, Michael Pento, and Gerald Celente, by CLICKING HERE.
Eric King
