Where Eight Renowned Investors Think Commodity Prices are Going
SOURCE:[The Globe and Mail] – Gold’s 12-year bull run is not over, according to Vancouver mining mogul and philanthropist Frank Giustra, despite the severe price correction the precious metal suffered this week.
Mr. Giustra, who has amassed a fortune through a series of junior mining deals, including the creation of the company that is now Goldcorp Inc., said he is now considering switching his gold investments from exchange-traded funds to major gold-mining companies and is willing to endure humiliation – in the middle of downtown Vancouver – should his call on the commodity be proven incorrect.
“If I am wrong, if this gold bull market is over, I will stand in the centre of Robson Square and I will sing Patsy Cline’s So Wrong wearing ladies’ underwear,” Mr. Giustra said in an interview this week.
Gold has fallen about 14 per cent this month and plunged 9.3 per cent on April 15, the largest one-day drop since March, 1980, according to data from Bloomberg News.
In spite of that selloff, Mr. Giustra is confident the yellow metal will rebound because central banks in North America, Europe and Japan are continuing to “print money” through asset purchase programs known as quantitative easing. Despite years of tepid increases in consumer prices, Mr. Giustra insists that inflation is poised to kick in as a result of global monetary policy decisions that have pushed interest rates to historic lows.
“Nothing has changed on the fundamental side … the behaviour that caused this gold market in the first place is just intensifying with all this money printing that’s going on around the world now,” Mr. Giustra said in a phone interview from the Vancouver airport. He was about to board his private jet for a flight to New York to attend a meeting of the board of trustees of the International Crisis Group, an independent international non-government organization committed to preventing and resolving deadly conflict.
Mr. Giustra called the recent plunge in the gold price and gold mining stocks a “correction and a pretty severe one, but not unheard of.” The Vancouver resident, who counts former U.S. president Bill Clinton as a close friend, said the price of gold corrected by 44 per cent in the mid 1970s before it went on to hit a then record of $850 (U.S.) an ounce in 1980. Gold hit an all-time high of $1921.15 in September, 2011, according to Bloomberg data.
Post from: Gold News from Gold Editor
Where Eight Renowned Investors Think Commodity Prices are Going
2013-04-24 14:08:11
Source: http://www.goldeditor.com/where-eight-renowned-investors-think-commodity-prices-are-going/
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