One of the Best Gold Watchers

Pierre Lassonde is one of the smartest people in the gold world, and he has the track record to prove it.

He’s a former president of Newmont Mining, the world’s largest gold producer, and was chairman of the World Gold Council. His achievements aren’t all in the past – now he’s chairman of Franco-Nevada Corp., the most successful gold royalty company.

I’ve known Pierre for years, and have learned that when he talks about gold, it makes sense to listen.

In a recent interview with, Pierre said gold sector investment is still in its early days, and it will continue for at least five more years.

His reasoning is similar to some of the things we have been saying for a while:

  • Gold can provide some protection against currency debasement as governments try to inflate away their massive sovereign debt burdens;
  • A rising middle class in China, India and other countries that value gold is a key demand driver for both jewelry and gold as an investment;
  • China’s appreciating currency will make U.S. dollar-denominated products (including gold) cheaper for Chinese consumers.

Of course, the interviewer asked Pierre to forecast the price of gold.

I believe in two things.  One is that the gold price will have three zeros after the first number – I just don’t know how big the first number is going to be.  We are now at $1,200 gold and I do not believe for one second that that’s the end of the bull market in gold… The U.S. politicians have absolutely no guts for another depression and they will always allow the printing press to run to answer their problem and therefore when I look at the long term gold price – very bullish.

Read Pierre’s Interview with Mineweb’s Geoff Candy

About Frank Holmes 263 Articles

Affiliation: U.S. Global Investors

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., which manages a diversified family of mutual funds and hedge funds specializing in natural resources, emerging markets and infrastructure.

The company’s funds have earned more than two dozen Lipper Fund Awards and certificates since 2000. The Global Resources Fund (PSPFX) was Lipper’s top-performing global natural resources fund in 2010. In 2009, the World Precious Minerals Fund (UNWPX) was Lipper’s top-performing gold fund, the second time in four years for that achievement. In addition, both funds received 2007 and 2008 Lipper Fund Awards as the best overall funds in their respective categories.

Mr. Holmes was 2006 mining fund manager of the year for Mining Journal, a leading publication for the global resources industry, and he is co-author of “The Goldwatcher: Demystifying Gold Investing.”

He is also an advisor to the International Crisis Group, which works to resolve global conflict, and the William J. Clinton Foundation on sustainable development in nations with resource-based economies.

Mr. Holmes is a much-sought-after conference speaker and a regular commentator on financial television. He has been profiled by Fortune, Barron’s, The Financial Times and other publications.

Visit: U.S. Global Investors

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