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Lassonde: This Gold Mania Will Compare To 1980 Run In Silver
Today a legend in the business, Pierre Lassonde, told King World News this is the calm before we head into the eye of the storm. Lassonde also said additional global turmoil and crisis will propel the gold market into a mania which will be comparable to silver’s historic run to $50 in 1980.
Lassonde 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 KWN takes his warning about the coming financial storm, and prediction for gold very seriously.
© 2013 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 This material may not be published, broadcast,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.
January 22, 2013
Eric King: “We’ve seen the Indians step in and raise import duties by 50% on gold in an effort to curb demand, Pierre. What did you make of that?
Lassonde: “Well, in the past it has never deterred the Indians from buying gold because they smuggle it. The (Indian) government is very well aware of that. They can increase the taxes by a small amount and the official channel will still work.
But if they increase it too much, what you are going to see is the gold is going to go through Dubai and it will be smuggled back in (to India). So you are going to see Dubai, all of the sudden, will be importing 400 tons of gold for like 3 people. Where does it go? It’s all going to India. So I’m not too concerned about it at this point.
Two countries in the world buy more than 50% of all the gold every year, and that’s China and India....
Continue reading the Pierre Lassonde interview below...
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“If the economy in China grows 5%, essentially you get an 8% to 10% growth in the gold market.
Now the Chinese economy is coming back up. We see it in the demand for petroleum products which is up quite substantially in the last quarter of 2012. So we are going to see increased gold demand, particularly in China. That will of course get in to India as well (increased demand for gold).
The underpinning of the (gold) market is these two countries, and they are on pretty good ground right now economically. So that’s very good news (for gold).”
Eric King: “Pierre, you’ve talked about this calm before we head into the eye of the storm. How chaotic will it be going forward, and as we see gold hitting $2,400, I guess you still feel like we are going to end up in some type of mania longer-term?”
Lassonde: “Yes. I still believe that, because China is such a huge part of the gold market today and they are such gamblers, at the end of the day we are going to end up in a mania in China on gold.
That’s going to propel the gold price to some crazy number. It will happen, just as it happened with silver in 1980. The silver price went from (roughly) $1 to $50. It was complete insanity, but it did happen. So I’m looking at a candlestick type formation (a mania) for gold, but I think that’s years away. But it’s not going to happen in the next year or two. We need more time for that. We need more crisis.”
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 forward. The KWN interview with legendary Pierre Lassonde is available now and you can listen to it by CLICKING HERE.
© 2013 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 Pierre Lassonde, Gerald Celente, James Turk, Bill Fleckenstein, John Hathaway, Egon von Greyerz and Ben Davies are available now. Also, be sure to listen to the other recent KWN interviews which include Nigel Farage, Eric Sprott, Art Cashin, John Mauldin, John Embry and Andrew Maguire by CLICKING HERE.
Eric King
