MINING.COM·2025-12-25 19:00Core Viewpoint - Pierre Lassonde, co-founder of Franco-Nevada, predicts that gold prices will reach $17,250 per ounce within three years, significantly higher than current levels [1][2]. Gold Market Dynamics - Investors are increasingly buying gold as an alternative to the U.S. dollar due to budget deficits in major developed countries [2]. - Gold's finite supply is a key attraction, with only 216,265 tonnes mined historically, while demand continues to rise, particularly from central banks [3]. - Lassonde emphasizes that if just 1% of funds from other asset classes were redirected to gold, prices would surge, as only 3,600 tonnes are produced annually, with a third going to central banks [4]. Global Reserve Trends - Gold is being remonetized in global reserves, with central banks and sovereign wealth funds diversifying their investments amid geopolitical uncertainties [5]. - The U.S. dollar's share of global official foreign reserves has decreased from 72% in 2001 to 58% in 2024, indicating a shift towards gold as a store of value [4]. Franco-Nevada's Business Model - Franco-Nevada operates on a royalty model, which was initially met with skepticism but has proven successful, yielding a 36% annualized return from its founding until its acquisition by Newmont in 2002 [13][14]. - The company currently has a market value of approximately $36 billion, reflecting its growth and the competitive landscape in the mining sector [13]. Philanthropic Efforts - Lassonde has made significant contributions to mining education and research, establishing endowed chairs and supporting scholarships, demonstrating a commitment to giving back to the community [16]. - His current project, Fuerte Metals, is seen as a promising venture in the Yukon, reminiscent of earlier successful investments [17].