With the price of gold and silver on the move, today legendary Pierre Lassonde stunned King World News with his shocking predictions about what to expect in the gold and silver markets. Lassonde also spoke about what he is doing with his own money right now. 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 current 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.
Eric King: “It’s been a brutal 4 year bear market in silver and about 3 1/2 years for gold. Bear markets will shake out as many people as possible so there are very few riders to the upside. But the individuals who are left are people like us, and we’re not going to sell. There aren’t really many people left to shake out, and you just wonder at this point: Have we finally seen the end of this brutal bear market? That's what I wanted to ask you today.”
Pierre Lassonde: “What I take from the current environment is that the physical demand for gold has been strong enough that the paper gold market, which is really just the hedge funds and other private equity (playing in a casino), they recently tried a number of times to force the gold price lower. And yet every time the gold price gets down to $1,130 – $1,140, the physical market just puts their hands out and says, ‘Just give it all to me, I’ll take it.’….
Continue reading the Pierre Lassonde interview below…
“So as long as you have that balancing factor, the $1,130 – $1,140 bottom is likely to hold. But until you start to see a bit of a change in the attitude towards the U.S. dollar, the gold market will really need to see inflation come back in a big way in order to see the next major leg of the bull market advance.
The Turbulent 1970s
This is what happened in the 1970s: The 1976 – 1980 gold bull market saw both the dollar going up at the same time gold was going up to a new record high. But you also had inflation going up almost on a monthly basis. You also had interest rates going up on a monthly basis, which is totally counterintuitive to what you would expect to see. So it doesn’t mean that if the dollar continues to go up, that the price of gold cannot rise. It has happened in the past. Of course the gold price went up to $850 in 1980.
So I think we will see roughly a $1,250 gold price until we start to see the dollar begin to fall from its very high perch. But the mining companies like Newmont, Barrick and Goldcorp, they can do very well in this environment. There’s nothing wrong with it.”
The Difference Between The 1970s Gold Bull Market And The Current One
Eric King: “Obviously you lived through the bull market of the 1970s that ended in that spectacular mania in 1980. During this cycle it’s been different than the 1970s, but in some ways it’s been similar. In the 1970s, gold shot up 6-times in price very quickly from 1971 – 1974. The price of silver went up 5-times in price during that time frame. The gold price was then chopped in half from 1974 – 1976. Then we saw that spectacular 850 percent upside surge in gold. So the time frames were much more compressed in the 1970s. It took just 10 years to get to the end of the manic phase.
But this cycle has been longer in terms of the duration. We are just now entering the back half of this secular bull market in gold. We’ve seen a roughly 40 percent correction in about 3 1/2 years, but that mania that we saw in the 1970s is still in front of us. That’s just the way bull markets end — in a mania, with stock prices going parabolic to the upside. We didn’t see that when the price of gold was at the highs of $1,920, in September of 2011. You know that mania is still in front of us, Pierre. What is going to be the catalyst for that parabolic move higher in the price of gold, silver and the shares?”
Mania In Gold Is Still To Come
Pierre Lassonde: “The mania phase of this secular bull market is still very much in front of us. My feeling is that the next leg of this bull market will start in earnest sometime in the next 12 – 18 months — in 2016, and I think it’s going to extend into 2019. At that point you are going to see a real mania developing.
Catalyst For The Coming Gold Mania
I think the catalyst for this coming mania is going to be China. The Shanghai Gold Exchange is eventually going to become a real casino. It has to do with the fact that China today is the largest consumer of gold. China is pushing really, really hard for the Shanghai Gold Exchange to become the premier gold exchange in the world in terms of the turnover of physical gold.
And with the middle class in China growing every year by a huge amount, the Chinese consumption of gold will also continue to dramatically increase. China, along with India, is already the dominant force in gold. We all know the propensity of the Chinese to gamble, and so at some point the Shanghai Gold Exchange is going to become a gambling casino, and this will cause the price of gold to really skyrocket.
Lassonde's Shocking Prediction – You Will See Prices You Never Dreamed Of
It’s not going to happen in America and it’s not going to happen in Europe — it’s going to happen in China. And you will likely see gold prices that you never dreamed of. And you are right about the opportunities that you see today. I’ve been buying stocks in the past three months at valuations that I never thought I would ever see. In 30 years I’ve never seen valuations so low. Even though 2/3 of my portfolio is gold, I’m buying more gold because the opportunities here are just unbelievable.” ***ALSO JUST RELEASED: This Will Be Catastrophic And Have A Devastating Impact On America CLICK HERE.
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