Frank Giustra: Billionaire Investor says Biggest Gold Bull Market of All Time Starting Now
Frank discusses his early career with Yorkton Securities and how he moved up while that company expanded into Europe. In 1990, he became president and a few years later Chairman and CEO. In 1996 he resigned since he felt an urge to do something different and in 1997 he founded Lionsgate Entertainment which today is the largest independent film studio.
Frank has started three successful mining companies that took advantage of the various bull markets in gold. He started Wheaton River, Endeavour Financial, and two years ago he began Leagold Mining Corp. which has a focus on mining in Latin America. His strategy is to utilize his teams M&A skills to acquire other companies and to again develop one of the largest mining companies in the world.
He believes that we are on the third and final phase of the gold boom cycle that started back in 2001, and the next cycle will be the largest of these moves.
He provides us with a lengthy explanation of why the 2008 crisis happened, and he makes a compelling case of where things are heading. Central banks are entirely trapped in a prison of their own making, and it is mathematically impossible for the debt to be unwound. Therefore it will never be repaid. Governments and central banks will inevitably be forced to inflate the debt away, and you can expect further currency wars for some time to come. He says, “There is a storm of stupidity taking place around the entire world today.”
He feels that investors should be in gold until the dust settles. A paradigm shift in market behavior is coming as everything is overextended. There will be panic, and gold will blow through the roof. Its already at all-time highs against most currencies. At some point, the overall stock markets will correct by 30 to 40 percent. He cautions that the next market cycle could very well be flat with sub-par growth for an extended period.
Time Stamp References:
1:30 – His background in stocks and securities.
4:30 – His mining ventures and M&A skills.
8:00 – Why he started Lionsgate Entertainment.
12:00 – Central banks and the outlook for gold.
13:00 – Why they can not unwind the debt.
16:00 – Fed is under pressure to cut rates more.
18:00 – Currency wars will continue.
20:30 – What does a boom in juniors look like?
22:40 – Leagold Mining overview.
26:15 – Recession and major correction is coming.
28:00 – 1969-1982 markets were flat could re-occur.
29:15 – Gold mining business is risky, use caution.
Talking Points From This Week’s Episode
• His early career and the companies he founded.
• Developing his third mining company.
• The coming third cycle for gold will be the largest.
• Governments and central banks are completely cornered.
• Stock markets will correct, a recession is inevitable.
• Governments will inflate away their debt.
• Further currency wars are coming.
• Stock markets could have a multi-year lull after a correction.
Frank Giustra is Chairman of Leagold Mining corporation and CEO of the Fiore Group which is a private firm managing a broad portfolio of private equity investments and companies, specializing in food and lifestyle, art and entertainment and natural resources. He has an established track record of building natural resource companies through access to capital and creative deal-making. As President and later Chairman and CEO of Yorkton Securities in the 1990s, he grew the firm into a leading natural resource investment bank. As Chairman of Endeavour Financial from 2001 to 2007, his vision and leadership led to the successful launch of numerous resource companies. Mr. Giustra is a strong believer in philanthropy and devotes much of his time to a variety of causes.
Mr. Giustra brings his entrepreneurial approach to philanthropy to pilot new ideas and innovations that can be scaled and shared to prevent conflict, alleviate poverty, and help people in humanitarian crises. He devotes time to a variety of causes on a local and global level. Most recently, his family foundation (formerly called the Radcliffe Foundation) has become actively involved in the refugee crisis by providing humanitarian aid in Greece and Turkey, along with being the founding partner in both The Ascend Collaborative and the Global Refugee Sponsorship Initiative.