Pierre Lassonde has said gold could skyrocket to $15,000 to $20,000 an ounce as the Dow-to-gold ratio falls to 1-to-1. Has his view changed?
Lassonde is the founder of Franco-
Last May, the head of the world’s largest mining company said we’ve found all of the gold. Goldcorp CEO Ian Telfer told the Financial Times, “we’re right at peak gold here.”
Peak gold is the point where the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s.
You could blow off Telfer’s comments off as hyperbole or the musings of a contrarian except that he’s not the only person in the gold mining industry worried about decreasing gold production. As a recent Business Insider article reported, many of the top people responsible for supplying the world’s gold say we’re running out of the yellow metal.
During the Denver Gold Forum last September, the chairman of the World Gold Council said he thinks the world may have reached peak gold. That is the point where the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s.
Randall Oliphant is not the only high-profile person in the gold industry expressing concern about gold supply over the long-term. Franco-Nevada chairman Pierre Lassonde also expects a significant dip in gold production in the coming years. During a recent interview with the German financial newspaper Finanz und Wirtschaft, Lassonde said we’re seeing a significant slowdown in the number of large deposits being discovered. The big question is how will the industry replace the massive gold mines that have produced large amounts of the yellow metal over the last 130 years or so?
