According to Pierre Lassonde, CEO of Fireside Investments, gold prices will climb as high as $2,400 over the next five years as countries like Russia try to dispose of the US dollar as the dollar has become a weapon after Russia’s conflict in Ukraine.
“You will see gold prices between $2,300 and $2,400!”
Pierre Lassonde, Honorary President of Franco-Nevada and CEO of Fireside Investments, forecasts a record $2,400 for gold prices, suggesting that a dual currency system could emerge by 2028. Lassonde explains his views as follows:
In the next five years you will see a dual payment system and currency. It is the Russia-Ukraine war that accelerates this. In my opinion, you will see gold between 2,300 and 2,400 dollars in the next five years.
In an interview at the BMO Metals, Mining and Critical Minerals Conference, Lassonde says he has observed central banks buy more gold as geopolitical tensions around the world increase. cryptocoin.com As you follow, central bank gold purchase in 2022 was the highest level since 1950 with 1,136 tons of purchases. This follows the central bank’s twelve years of net gold purchases.
“At the end of the day, you will encounter a dual world!”
Lassonde, who pioneered the publicly traded gold royalty model in 1983 and has fifty years of experience in the finance and mining industries, believes that central banks, particularly in the BRICS (Brazil, Russia, India, China and South Africa), are trying to create an alternative to the US dollar as a reserve currency. buys gold as a starting point. In this regard, Lassonde makes the following assessment:
These central banks take gold as their reserve currency. Will they use gold to support a new currency? We don’t know… I still believe that at the end of the day, you’re going to face a dual world in terms of the payment system and the currency you pay in, and that’s not good for the dollar.
What do you think happens when you can write an unlimited check?
According to Lassonde, BRICS countries are concerned about US influence in their business and leaving the US dollar will help them gain more autonomy. In this context, Lassonde comments:
In particular, China, but also Russia, India and some other countries are in the process of creating a dual payment system, currency, to counter the US dollar. All reserve currencies are destined to go down simply because of the balance of payments. What do you think happens when you can write an unlimited check?
The prediction of a bifurcation of the global monetary system has been defended by a number of people, including Canadian mining magnate Frank Giustra. Lassonde also suggests that some young miners may be successful as gold reaches new heights.
The recession, the stock market crash and its impact on gold prices
According to Lassonde, there will be a recession and stock market crash in 2023. He argues that the resulting economic destruction will benefit gold. Lassonde explains this prediction as follows:
I think you’re going to see the US economy go into a recession in the next two quarters, and it’s going to be a pretty significant recession. All estimates exaggerate earnings. They’re going to drop, and with it you’ll see the S&P drop about 30 percent.
Lassonde predicts that the US Federal Reserve will respond to the recession by lowering rates, but not quickly enough. According to Lassonde, this will hurt the US dollar and cause investors to flock to gold. “Gold stocks will not go down because they carry dividend yields to keep them afloat,” Lassonde says.
