Gold Could Surge To $8,000/oz On Negative Interest Rates – Lassonde
GoldCore
GoldSeek.com
Wednesday, 9 March 2016
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.
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 –.
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