We're currently in the last phase of a gold bull rally, and this phase will see the most upside action, this according to Frank Giustra, chairman of Leagold.
I think we're in the third and final phase of the gold market that's started in 2001, and this will be the most explosive phase for gold," Giustra told Kitco News.
Giustra noted that past monetary policies of the Federal Reserve have contributed to gold's bull cycle.
"In 2008, I predicted that we wouldn't have a depression, a lot of people were afraid we were going to go into a depression. I said, it's not going to happen because we're going to get all of this printed money that's going to create a floor on the economic system. We'll pay the price later, but gold's going to run, and as you know, starting in 2009, when I created the second gold mining company, Endeavour, gold began a run up to 2011," he said.
Giustra added that the Fed's reversal of policy this year from hiking to lowering rates, signaled to him the beginning of a bull rally in gold.
"Had you normalized rates to 5 or 6 percent, you would have imploded the whole system, so I always predicted they would only be able to raise rates to a point, and then when they paused, that rang the bell for me, and when they started to drop rates, I predicted this will be the beginning of the next really big run," he said.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.