In a recent
interview with BNN Bloomberg, Pierre Lassonde, chair emeritus at
Franco-Nevada Mining, said he believes the US dollar has peaked
“and gold is the
anti-US dollar so that is one of the reasons why I’m so bullish on
gold for 2024.”
He also said that inflation next
year will be “sticky”, around 3-4%, noted that the federal
government is going to have a $2 trillion deficit, and argued that
interest rates will come down because there is a presidential
election.
“What does the Fed do in an
election year? They like to make it easy for the incumbent to win the
election,” said Lassonde. “So interest rates are going to come
down but it’s not gonna happen in Europe, I think the euro is going
to be going up vis-a-vis the US dollar, all of the other currencies
will and gold will be going up.”
Asked whether cryptocurrencies are
limiting gold’s upside, Lassonde pointed out that none of the
central banks are buying crypto but many of them are buying gold.
“They’re diversifying out of US dollars, they say we don’t
really trust the dollars, we don’t trust America to let us exchange
our money when we need it, and they’re buying gold,” he said,
noting that when the EU slaps regulations on the crypto market, “[it]
will be very small compared to the gold market.”
Finally, Lassonde said that gold
stocks are trading as though gold was $1,500 an ounce, about half of
their real value, “so
I look at 2024 as a catch-up year for the vast majority of gold
stocks. I think they’re gonna outperform any other equities on the
market.”
Central banks bought a record 1,136
tonnes of gold last year and followed that up with another 228t in
Q1, the most ever in a first quarter.
Central bank gold demand saw its
highest first half on record dating back to 2000, the World Gold
Council said.
“Record central bank demand has
dominated the gold market over the last year and, despite a slower
pace in Q2, this trend underscores gold’s importance as a safe
haven asset amid ongoing geopolitical tensions and challenging
economic conditions around the world,” Louise Street, senior
markets analyst at the WGC, commented.
Robust demand for gold continued in
the third quarter, with CBs collectively buying 337 tonnes, the
second-highest third quarter on record. According to the World Gold
Council’s most recent quarterly report, “Global official gold
reserves rose… 120% higher q/q and the second highest third quarter
total following Q3 2022. On
a y-t-d basis, central banks have bought an astonishing net 800t, 14%
higher than the same period last year.”
Weiter hier:
https://www.mining.com/will-2024-be-the-year-for-precious-metals/
Gruß! Fritz
