Fri, Jul 22, 2011 - 2:40pm
July 22, 2011
Pierre Lassonde - Coming Mania in Gold Will Dwarf that of ‘70s
When asked if he felt mining shares were way undervalued Lassonde said, “It is (gold shares) way undervalued and this is one of the most interesting facets of the current market as far as I’m concerned. The portfolio managers for whatever reason seem to have stuck their wallets up their rear ends and sat on their hands for the past three or four months.
When you look at the average valuation of gold stocks over the last ten, twenty years and where they are today, they are like one standard to two standard deviations below what they normally trade for. Let alone in the current market they should be trading for, which is one standard deviation above the norm if not more....
When asked about John Embry’s prediction for the HUI (Gold shares index) to double in the next six to twelve months Lassonde said, “Can his prediction for the index (HUI gold shares) double, I think he’s probably low, I think we are going to see more than that. I’m totally convinced because the gold stocks are way undervalued, so I’m looking at a very strong performance of the equities vis a vis the bullion in the next 18 months.”
When asked if the coming mania in gold will make the ’70’s run look like child’s play Lassonde responded, “Well it will because in 1980 the only players were the Americans, they were essentially the only players in the gold market, or the dominant players.
Today the dominant players are China and India, 58% of all the gold sold this year will be sold in these two countries. So they are by far the dominant players and as I’ve said the Chinese love gambling. When we reach that phase (the mania) I told you and I will tell anyone who wants to listen, watch out because it will truly make your head spin.”
Edited by: goldcountry on Nov 8, 2014 - 5:20am