Gold Set Another Record High As Canada Sleeps

Intro

As gold set another record high, Canadian mining legends Frank Giustra, CEO of Fiore Group, and Pierre Lassonde, Chairman Emeritus at Franco-Nevada, say the West has lost its power to set the price of gold. Gold Set Another Record High As Canada Sleeps. Giustra and Lassonde also warn that in the new geopolitical reality of resource nationalism, Canada is failing its economy and citizens. Now being a proud Canadian this is worrisome. Is Canada about to lose it’s mining dominance due to lack of interest by our government? Sure seems so.

With gold futures hitting another record high of above $2,264 an ounce at the start of the second quarter, Giustra and Lassonde pointed to a major shift in the gold market. The West it seems has lost it’s control over the Gold Market and for that matter the entire mineral space. As the US is concentrating on AI and Tech it’s interest in mining has waned. All this is quite a dilemma as minerals are important for a transition to the new era of green.

Gold Hits a Record High

“The world hasn’t woken up yet. The marginal buyer of gold is no longer the U.S. It’s no longer Europe. It’s China. Between the country’s central bank and the Chinese public, China takes up over two-thirds of all the annual production. They are the new marginal buyer. That’s where the gold price is set,” Lassonde told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, during Kitco Insights Interactive Mining Titans’ Power Panel.

For what this means for the U.S. dollar and gold this year and beyond, watch the video above. 

BRICS Plus, which now includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, Ethiopia, Iran, and the United Arab Emirates, can get up one morning and say they are going “to back their collective new currency with gold,” which they can now set to create more credit and reserves, Giustra pointed out.

A coordinated move by the BRICS Plus against the U.S. dollar could lead to violent results, he warned.

“No one wants war, but here’s the problem — the U. S. is facing an existential threat. It’s a national security issue,” Giustra said. “If there’s a sudden move towards replacing the U.S. dollar, meaning perhaps a BRICS announcement of a new currency [backed by] gold, I think then it would react quite violently.”

For your chance to gain exposure to the Silver Market , watch the video . 

Has Canada lost the battle for resources?

Securing critical metals for the energy transition has become a matter of national security for many countries. However, Canada is losing this battle, according to Giustra and Lassonde.

While many countries are facing massive metal shortages, Canada is distracted with overseas investments. For example, Canadian pension funds that represent CAD$2.7 trillion of Canadian savings have more invested in China than they do in Canada, which is unforgivable, Giustra and Lassonde told Kitco News.

More specifically, Canadian pension funds have less than 3% of their total assets invested in Canadian public companies, down from 28% in 2000.

“When you look at the mineral sector in Canada, it’s been totally ignored by the government for the last 40 years. Our politicians, both at the federal and the provincial level, couldn’t care less about the mining industry,” Lassonde said. “Frank says we could lose the race. We’ve already lost the race.”

Giustra pointed out that bold action is required to solve this crisis, but Canada lacks visionary leadership.

“Canada is endowed as one of the most prolific mineral countries on the planet, the second largest landmass in the world, and largely unexplored. [However], there is almost zero investment in the Canadian mineral sector. It’s worrisome. Canada’s in danger of losing out in this race for critical minerals,” he said.

Opinion

It seems Canada is falling apart at the seams. Countries all over the world are beating them in almost every area of development. Canada is blessed with minerals yet the government turns a blind eye and even turned downed opportunities to sell NG. To me this seems ludicrous and even as I speak the carbon tax has kicked in crippling the averages Canadians pocket book.

With a lack of interest in mining and the East taking control of the Gold Market the prices of Silver are about to explode. Is it time to invest in this soon to be depleted market? Just Maybe.