Gold price hits new record highs as the West loses price-setting powers: Frank Giustra & Pierre Lassonde on new geopolitical reality & resource nationalism – KITCO

(Kitco News) – Canadian mining legends Frank Giustra, CEO of the Fiore Group, and Pierre Lassonde, Honorary Chairman of Franco-Nevada, have announced that they will continue to invest in Western countries as gold prices reach new highs once again. says it has lost the power to determine the price of gold. Giustra and Lassonde also warn that Canada is weakening its economy and people in the new geopolitical reality of resource nationalism.

Giustra and Lassonde pointed to major changes in the gold market as gold futures hit a new record high of more than $2,264 per ounce at the beginning of the second quarter.

“The world has not yet woken up. The marginal buyer of gold is no longer the United States, it is no longer Europe, it is China. Between the country’s central bank and the Chinese people, China accounts for over two-thirds of its total annual production. “They’re the new marginal buyers, and that’s where the price of gold is set,” Lassonde told Kitco Insights Interactive Mining Titans Power Panel with Michelle, lead anchor and editor-in-chief of Kitco News. told Makori.

For more on what this means for the US dollar and gold this year and beyond, Watch the video above.

BRICS+, which now includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, Ethiopia, Iran, and the United Arab Emirates, can wake up one morning and say, “We’re going to support a joint new currency.” . Gold” can be used to generate more credit and reserves, Giustra pointed out.

He warned that any concerted action by BRICS+ against the US dollar could lead to violent outcomes.

“Nobody wants war, but here’s the problem: The United States faces an existential threat. This is a national security issue,” Giustra said. “If there is a sudden move towards replacing the US dollar, it probably means the announcement of a new currency by the BRICS.” [backed by] If it were gold, I think they would react quite violently. ”

Giustra also outlined the biggest geopolitical risks for 2024. For insights, Watch the video above.

Has Canada lost the battle for resources?

Securing essential metals for the energy transition has become a national security issue for many countries. But Giustra and Lassonde say Canada is losing this battle.

At a time when many countries are facing major metal shortages, Canada is distracted from investing abroad. For example, Canada’s pension funds, which account for C$2.7 trillion of Canada’s savings, invest more in China than in Canada, which is unacceptable, Giustra and Lassonde told Kitco News. Told.

Specifically, Canadian pension funds invest less than 3% of their total assets in Canadian publicly traded companies, down from 28% in 2000.

“If you look at Canada’s mineral sector, it has been completely ignored by governments for the last 40 years. Our politicians, at the federal and provincial levels, could not afford to ignore mining,” Lassonde said. he said. “Frank says we could lose the race. We’ve already lost the race.”

Giustra said resolving this crisis requires bold action, but Canada lacks visionary leadership.

“Canada is one of the most mineral-rich countries on earth, the second largest landmass in the world, and largely unexplored. [However], investment in Canada’s minerals sector is almost zero. That’s worrying. “Canada is at risk of losing this competition for critical minerals,” he said.

What this means for the Canadian economy and the irreversible impact. Watch the video above.

This panel was provided by Eagle Plains Resources.

Eagle Plains is a mineral exploration company with more than 50 projects in Western Canada over 30 years. The company has more than $7 million in cash for him and is making a lot of money, but he only has 115 million shares outstanding, which have never been rolled.