Tuesday, February 25, 2014

Our Daniela interviews Pierre Lassonde on gold

Daniela's back!

Here she is interviewing Pierre Lassonde, inventer of the Lassonde Curve, which Brent Cook shows at every single talk he gives (though I've not seen him give credit):

Funny thing is, Otto emails me a link to this saying he really liked the interview.

I start watching it, and what does Lassonde immediately start talking about?

Supply and demand in the physical markets as sole determinant of the gold price.

In fact, Lassonde goes so far as to reduce it to an equation: every 100 tons of gold oversupply reduces price by $30.

It's shocking, shocking I tell you, that Otto even shared this link with me. Supply and demand? That old myth of classical economics?

Other than that, Pierre agrees with me 100% that a crash in China will be very bad for gold - and, by the way, I still think y'all should worry quite a fuck of a lot more than you do about how much of the gold that went to China these past couple years is acting as collateral for bad loans. Loans that might fall to bits at any time, taking out other loans with them, til the entire edifice of the Chinese credit system spooges out a desperate and hurried ejaculation of decollateralized metals into an overwhelmed world market.

Spend some time thinking about it, m'kay?

Pierre also agrees with me 100% that Indian gold demand is being met; the tariffs looked bad to Whitey but the gold just moved to unofficial channels.

And, hilariously, Pierre notes that "central bankers spend absolutely no time thinking about gold". No, Ben Bernanke isn't constantly scheming on how to suppress the price of gold in order to maintain the masses' trust in worthless fiat, as certain bloggers insist.

Anyway, great work Daniela. See if you can get an excuse to interview Pierre Lassonde again at PDAC. The gold investing world doesn't need to hear from another newsletter clown, they need more of this guy.

Also see if you can interview The Clive.

I'll be there on Sunday if you want to interview me.


  1. Yep, sent the link to you because somebody sent it with a reco to me. Andit's good.
    As for his S/D thoughts, they're clearly applicable in the derivs market (e.g. GLD etc), but the rest is more about the demand for gold, not about supply and demand (lest we forget, potential supply of gold is vast compared to any annual demand number, you just need the price to go up).
    Just a pity he has to sully himself by pumping things like Olivut at times.

    1. Yabut no. "Asset class" gold (the 177,000 tons that I'm assuming you're referring to here) does NOT come back to market when the price goes up. It continues to be accumulated, the same as any other appreciating asset class. Buying follows price.

      That 177,000 tons of gold only comes to market in liquidity crises, and then only to the extent that it has an easy path to market. You can see this e.g. in the scrap numbers since 2007.

    2. I am obviously correct about gold and you are obviously incorrect.

      PS: Of course. That one goes without saying.

  2. Why is he picking on Daniela?

    1. Shh, don't. Let it go. Powell lost $100,000 when Mt Gox went under. He's hurting.

      Well, plus he's a fucktard.

  3. Yeah but they bought a lot of bitcoins with that gold, so, umm, it's all good!