Mining billionaire Pierre Lassonde - co-founder of Franco-Nevada and former Chairman of Newmont Mining - said that the global financial system is entering a deep transition phase, creating a foundation for gold prices to rise sharply in the next few years.
In an interview with Kitco News, Mr. Lassonde said that the current context has many similarities with the stagnant inflation period of the 1970s - the period when gold prices increased 10 times. However, the biggest difference today is that the scale of US public debt has increased to an unprecedented level.
In my opinion, the gold target of 17,250 USD/ounce is completely grounded. I believe gold prices can reach this level in about three years" - Pierre Lassonde said.
He said that in 1981 - when President Ronald Reagan took office for his first term - the total US public debt was only about 1,000 billion USD. Meanwhile, the US public debt has now approached the 40,000 billion USD mark.
According to Pierre Lassonde, huge interest expenses are putting great pressure on the US budget. He believes that the US Federal Reserve (Fed) is forced to maintain liquidity support policies, which means continuing to "print money" to handle the public debt burden.
He also emphasized that the trend of dedollarization is becoming increasingly clear as many countries seek to reduce dependence on the USD in international payments.
“90% of the time gold is commodity, but 10% of the time gold becomes the last reserve currency. When the USD no longer plays that role well, gold will replace it,” Lassonde said.
According to him, central banks are currently the largest buyer in the gold market. The proportion of gold in foreign exchange reserves of many countries has increased sharply, from below 10% to more than 20%.
Recent data shows that the People's Bank of China continues to buy gold for the 18th consecutive month. As of the end of April 2026, China's gold reserves could reach 74.64 million ounces.
In addition to gold price prospects, Pierre Lassonde believes that mining stocks are still undervalued even though corporate profits have increased sharply thanks to high gold prices.
He said that the cost of maintaining mining for many businesses currently fluctuates around 1,500-1,600 USD/ounce. With gold prices around 4,600 USD/ounce, the profit margin has risen to about 3,000 USD/ounce.
If gold prices rise to $17,000/ounce, the profit margin of mining companies will expand even more strongly," he said.
Pierre Lassonde also appreciates that many gold businesses currently prioritize paying dividends, buying back shares and controlling costs instead of chasing expensive acquisitions as in previous cycles.
In addition, he criticized the large pension funds of Canada for allocating too low investment proportions to the domestic market, especially the mining sector.
According to Lassonde, the current gold uptrend cycle is not simply a short-term price increase but "a complete mining cycle".
When I see many people still standing outside the gold market, I wonder what else they are waiting for," he concluded.
