This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Franco-Nevada Chair Urges Gold Miners To Invest In Technology

Investors are fed up and Lassonde seems to empathize with them. He said that in the 1960s and 1970s, when gold was about $35 per ounce, $1 in exploration spending would yield $100 in return. Despite record gold prices during this bull run, over the last 10 years $1 in exploration spending has returned only $11.

“Investors are voting with their money. They are out of the deal,” he said during his presentation in Denver.

Lassonde placed much of the blame for the current state of affairs on the lack of new technology. To drive home his point, he compared the gold and oil industries, commenting on game-changing oil-related developments such as 3D seismic technology, fracking and horizontal drilling.

Responding to a question at last week's Roundup, he said “[w]e're nowhere. I mean give me a new technology that has really shaken our world in the last 30 years. I mean we're still using the same stupid drill rigs that we've used for 100 years. Maybe they're a little faster. The oil is better. But there's nothing dramatically new.”

Challenging times lie ahead if the gold industry — especially senior companies — fails to invest in technology that will create a paradigm shift, Lassonde warned.

He is a firm believer that gold's bull run is not over and could continue for another five to 10 years.

With gold demand sitting at $220 billion, growth is ten-fold higher than it was a decade ago, Lassonde pointed out. He questioned if any other industry can make such a claim. Furthermore, he projected that inflation and demand from India and China will drive further growth.

Cash is trash and central banks are realizing that all currency is suspect, he said. He foresees a growing trend of central bank gold purchases and he thinks money managers will return to a tendency of holding five to 10 percent of their portfolios in gold.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs