Thursday, May 22, 2014

INTERVIEW WITH PIERRE LASSONDE: three ways he's smarter than you

The Gold Report - interview with Pierre Lassonde. Read it all, because he invented the Lassonde Curve and you didn't. Here's some choice cuts:
I have been in the vaults of HSBC in London and seen the $60B in gold there. As far as the SPDR Gold Shares ETF is concerned, these claims of "paper gold" are complete fantasy. SPDR Gold Shares is physical gold.
Then again, maybe Lassonde is part of the conspiracy!

TGR: When gold topped $1,900/oz in September 2011, many goldbugs believed that, based on macroeconomic considerations, the price would top $3,000/oz and beyond. Was that view wrong, overstated or ahead of its time?

PL: It was clearly wrong when we look at what happened. That view was based on the idea that the Federal Reserve was issuing so much paper that significant inflation would appear shortly, and that, in turn, would boost the gold price up and up and up. Three years later, we still don't see any inflation. What these people forgot is that the velocity of money fell tremendously in 2008 and has never really recovered. The money being created by the Fed is being sat on by the banks.
I'd go one step farther and say that any goldbug newsletter writer who was calling for an explosion in inflation back in (say) 2010 should be forever ignored. He's demonstrated that he's a fucking ignorant windbag who has never even taken an economics course, and therefore he has absolutely no clue how the world works, and therefore everything he says is nothing more than baseless opinion, which is not a valuable input to anyone's investing strategy.

Another choice cut:
The last 10 years has seen a huge gold transfer from the West to the East. People in the West look at Western statistics and argue that the price of gold must collapse. They forget we are no longer the No. 1 market in gold in the world. Chindia is: China and India. Those are the No. 1 and No. 2 gold markets in the world.
Hey! Who was it who was saying, two years ago, "the US doesn't buy any gold" and "gold has nothing to do with the US" and "gold is all about EM wealth"? Do you remember? Who was that guy? That smart guy?

Was it... me?

Anyway, Pierre Lassonde is smart, and he even gets in a little dig at The Sandstorm Kid. Go read him.

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