A billionaire’s bet on inflation – Frank Giustra interview
In discussing gold during the interview he said, “I believe it’s going a lot higher…it’s going to have a parabolic spike, caused by some event or some loss of confidence…a US dollar crisis would be a perfect example. That will cause gold to go through the roof, and then everybody will want to own it…I don’t think we’re close to that yet…Gold will probably have a much greater run than some of the other hard assets–because it’s also a currency.” (19:16)
With respect to the mining shares, he said, “The resource market is in the worst state I’ve ever seen it in…people usually connect irrational and stupid market behavior with peaks of markets, but it takes place at the bottom of markets too. And it’s just as bad [at bottoms]…fear is a much stronger emotion than greed…[There are] companies developing world-class assets trading at pennies on the dollar.” (21:50)
September 4, 2012. As he said at that time, he didn't think we were close to an event that would cause gold to go through the roof. Each day puts us closer to that event. Governments and Central Banks aided by some financial institutions are doing their best to convince the public that precious metals are not a currency. They don't want the competition. Ironically the only way many governments can repay their debts is through devaluing their currency. GLTALs.