The gold bull market has returned and gold could surge over 1,000% to $8,000 per ounce in the coming years according to legendary gold investor, Chairman of Franco-Nevada Corporation and former Chairman of the World Gold Council, Pierre Lassonde.
Pierre Lassonde on BNN
Gold prices are heading higher, much higher and he is “very sure” that the five-year bear market for gold is over and we are at the beginning of a new bull market, the gold insider told leading Canadian business channel, BNN.
The primary reason for his very bullish outlook for gold is negative interest rates and the $7 trillion in bonds that now have negative yields:
“One of the big knocks on gold is that you have to pay to hold it,” Lassonde said. “Now even bonds have a negative carry.”
He also believes that the Dow Gold ratio suggests much higher gold prices:
During strong gold bull markets, the price of gold often hits a one-to-one ratio with the Dow Jones industrial average, says the chairman of Franco-Nevada Mining and former president of Newmont Mining.
That means gold could surge to US$8,000 an ounce or even higher, he says.
“In 1980 gold was at US$800 and the Dow was at 800; in 1934 gold was US$36 and the Dow was at 37 – where is the Dow today?” he asks BNN’s Catherine Murray. “Do I know it’s going to go back to 1:1 – I don’t know… even if it gets to 2:1, that’s US$8,000 –.
Lassonde says with understated humour that he is “slightly optimistic.”
The interview with Catherine Murray can be watched on BNN here.
LBMA Gold Prices
09 Mar: USD 1,258.25, EUR 1,146.69 and GBP 884.16 per ounce
08 Mar: USD 1,274.10, EUR 1,155.69 and GBP 894.35 per ounce
07 Mar: USD 1,267.60, EUR 1,156.96 and GBP 896.13 per ounce
04 Mar: USD 1,271.50, EUR 1,158.67 and GBP 898.93 per ounce
03 Mar: USD 1,241.95, EUR 1,141.48 and GBP 882.24 per ounce
Gold News and Commentary
Gold’s Best Start Since 1974 Shows It’s Not Just Inflation Hedge – Bloomberg
Gold’s Rally Belies Confidence in Global Stocks Rebound – Bloomberg
Gold slips as euro dips ahead of likely ECB easing – Reuters
Gold ETF Holdings Rise For Record 40 Straight Days – Bloomberg
Chinese exports plunge 25% in February – BBC
Video: Gold’s “Medium Term Outlook” Remains Positive – Bloomberg
“Battling” A Technically-Overbought Gold Market – Dollar Collapse
Exclusive: U.S. watchdog to probe Fed’s lax oversight of Wall Street – Reuters
These “X Factors” Could Send Silver Prices Soaring in 2016 – Profit Confidential
The Big Beneficiary of Negative Rates: Gold – WSJ