Gold to US$17,250 in three years — mining legend Pierre Lassonde. By Jeremy Szafron at Kitco.

The global financial architecture is undergoing a structural transformation that positions gold to reach $17,250 an ounce as it replaces the U.S. dollar as the “currency of last reserve,” according to mining legend Pierre Lassonde. …

“The total debt in 1981, when Reagan was first elected, was $1 trillion,” Lassonde said. “Today, that’s the amount of money that the U.S. has to pay in interest every year because the total debt is approaching now $40 trillion.” …

With the U.S. budget deficit projected to exceed 7.9% of GDP, Lassonde argued the Federal Reserve is effectively “monetizing the debt and printing dollars,” providing a permanent tailwind for bullion. …

“I reiterate that my $17,250 gold price is as solid as can be,” Lassonde stated. “I’m convinced we will see this in the next… three years.” …

“Gold, 90% of the time is a commodity, but 10% of the time it’s the currency of last resort,” Lassonde explained. “When the dollar doesn’t perform its role as currency of last resort, guess what? Gold takes its place, and that’s what’s happening right now.”

When the ruling class fails politically, you get populism. When it fails to manage the currencies, you get soaring gold prices.

If gold goes up 400% (US$4,300 to US$17,250/oz), the big gold miners will go up 1000%, and well chosen juniors will go up by far more.