On the heels of Monday’s rebound, today legend Pierre Lassonde told King World News that we just saw a major bottom in the gold market. He also shared his top mining stock pick for 2021.
Lassonde is arguably the greatest company builder in the history of the mining sector. He is past President of Newmont Mining, former Chairman of the World Gold Council and former Chairman of Franco Nevada. Lassonde is one of the wealthiest, most respected individuals in the gold world, and as always King World News would like to thank him for sharing his wisdom with our global readers during this critical period in these markets.
Bottom In Gold
Eric King: “Pierre, we were speaking last Friday and you told me, ‘This is going to be the floor in gold.’ At that time the price of gold was $1,770. You were talking to me about physical demand in the gold market. Can you discuss that physical demand?”
Legend Pierre Lassonde: “First of all, Eric, thank you for having me once again. It’s always a pleasure to talk to you about the market and to be able to share with your readers and listeners my insight into the gold market. As far as what I said to you on Friday, it was that I believed $1,770 was going to be the floor for this pullback in gold. The reason for that is the physical market is very different this year than last year.
Last year the physical market was all about investment demand. It was about the gold ETF in particular where almost 1,000 tonnes went into the ETF (GLD), and also the bar and coin market was very strong with hundreds of tonnes of demand. But the flip side of that was that jewelry demand got totally annihilated last year, particularly in India and in China they had a really bad year.
Physical Demand Now Controls The Gold Market
Well, this year it’s the opposite and what we are seeing is very strong demand in the Indian market, particularly because they’ve eliminated the excise tax on imports. So there is very strong demand and the same thing is happening in China with a very strong rebound in demand.
Pierre Lassonde’s Top Mining Stock Pick For 2021
The jewelry market sets the floor price for gold. The investment demand sets the ceiling price. But what we’re seeing here is the floor price being set by the jewelry market. And I’m very bullish for the rest of the year because…In this audio interview Pierre Lassonde shares with KWN listeners around the world his top mining stock pick for 2021 that he has been aggressively buying as well as discussing where the price of gold is headed and why he is so bullish and you can listen to the interview now by CLICKING HERE OR ON THE IMAGE BELOW.
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