We had the opportunity to sit down with Frank Giustra last week, the lion behind Lionsgate Films, and an early architect of countless resource companies—most notably Wheaton River Minerals (now known as the $33B Goldcorp, which spun out the $12B Silver Wheaton), Petro Rubiales (now the $7B Pacific Rubiales), and Urasia Energy.
By all accounts Giustra is brilliant, connected and wealthy. He made headlines in 2007 by pledging over $100 million and half of his future earnings to establish a charitable foundation with President Clinton. Outside of philanthropy however, Giustra has been reluctant to draw attention to himself, and rarely speaks publicly about investing.
In 2002 however, he moved heavily into gold and published, “A Tarnished Dollar Will Put the Shine on Gold”, when it was trading under $300 an ounce. Ten years later and with gold now priced over $1600/oz., it still occupies the largest percentage of his investment portfolio, and his views remain the same.
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 even 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)
He IS talking his own book.....but...
Gold's looking pretty good.....sitting just shy of $1700 an ounce at the moment.
Looking at DJIA, S+P, and Gold, they're all up YTD in the high single digits
Looking at DJIA & S+P over 5 years....it's almost exactly flatline
Looking at Gold over 5 years, up 150% safe as houses(safer even).
Catch you at the end of the year Skol for that humble pie you have on order
Central bankers can only disappoint for so long ...everyone know more QE will happen....without free credit the real debt crushes growth drives unemployment
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
I'm only 39 pages into my book on the gold bubble and I'm already kissing the earth that I don't own any gold or silver.
The exact peak in the housing bubble was the exact same time as a new TV programme, "Flip this House", and the author surmises that the peak in the gold bubble last year was the same time as the launch of "Gold Rush Alaska".
I can’t imagine it means anything cheerful that Vladimir Putin, the Russian czar, is stockpiling gold as fast as he can get his hands on it.
According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.
Hi Skol and a good morning, you have always said that POG is going down, now you are saying that POG is"going nowhere". Reading between the lines that sounds like a 180 degree change in your thinking.
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