Frank Giustra: The Life of a Gold Speculator

Описание: Frank Giustra: The Life of a Gold Speculator

Frank Giustra
Chairman of Fiore Group of Companies
Co-Chair of the International Crisis Group.
Founder of Wheaton River, now Goldcorp
Founder of Lionsgate Entertainment

Early in his career, Frank transformed Yorkton Securities from a small investment bank into a major player in the international mining finance industry before leaving in December of 1996.

Frank is a modern-day renaissance man, having founded Lionsgate Entertainment, Modern Farmer, Dominica Fiore, and a long list of other ventures.

Franks speaks about two transformational events in his personal and professional life.

As Co-Chair of the Crisis Group, Frank leads one of the foremost organizations in the world for mediating and resolving global conflicts.

Frank has dedicated the rest of his life to philanthropy, mentoring, and learning.

He describes this experience leaving his position and Chairman and CEO of Yorkton Securities to start Lionsgate Entertainment and the challenging years that follow.

The core lessons he learned out of Lionsgate is
1. Be patient when starting a big endeavour like starting a company; do it methodically and don't try to conquer the world overnight. It takes 3-5 years to do it right.
2. Perseverance. Never give up. Don't listen to the people who tell you to quit in those difficult moments.

Frank outlines his 5 lessons to live a balanced life.

The narrative around the gold market that Frank follows begins with the macro view. He has watched global debt double in the decade before 2008 and believed it was mathematically impossible to raise interest rates without imploding the world economy.

When the fed started raising rates in 2016 he began investing in the gold market once again.

He doesn't believe that interest rates can be normalized and trying to do so is a big catalyst for gold.

He compares the US to Japan 30 years ago. Now that the USD doesn't offer a decent return on holding cash gold becomes a much more attractive store of wealth.

Stocks are hugely overvalued at this point and Frank believes they are due for a correction.

In this time of overvalued assets, everything is relative so valuing gold in terms of dollars is not useful. Gold relative to the Dow is not necessarily overvalued.

Frank believes Biden will continue with the current level of money printing by passing a new stimulus package.

The next gold run will come after the next stimulus package.

The ongoing stimulus will likely continue to inflate the equities market as well.

The world economy can't grow when we're holding this much debt without restructuring somehow. Possible solutions could include central bankers revaluing gold, but returning to a gold standard is nearly impossible. However, gold may back certain reserve currencies.

Gold is the safest investment to preserve purchasing power over the next 5 years.

Gold stocks are Frank's favorite speculative investment over the next 5 years.

Frank's rules for evaluating gold stocks
Great Asset
Great Management
Ideally undervalued
Balance sheet that can weather a storm

For the next couple of years, we should expect to see a very disciplined mining sector.

The time to sell gold is after a parabolic spike but we're not even close to that point.

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