EPISODE 7. Anthony Milewski and Christian Purefoy are joined by special guest Simon Marcotte, President and CEO of Northern Superior Resources, to talk about what’s driving the rising price of gold and whether it will reach $30,000.

🎙️ Transcript

Conversation between Anthony Milewski, Christian Purefoy, and Simon Marcotte (CEO, Northern Superior Resources). Edited for clarity and readability.

Christian Purefoy:

Welcome back to Boom, Bust and BS. Today, we’re digging into one big question: can gold go from $3,000 to $30,000? And we’ve got the perfect guest to explore it—Simon Marcotte, CEO of Northern Superior.

Anthony Milewski:

Simon’s got some bold takes. His company’s building a major gold camp in Canada—10 to 12 million ounces so far. But before we dive into Northern Superior, Simon, you’ve been vocal about gold macro trends. Let’s start there: what’s your thesis at $3,200 gold?

Simon Marcotte:

I believe gold is going much higher. I’ve spent years studying monetary policy, and all signs point to prolonged negative real interest rates. That’s historically when gold explodes. $30,000 gold might sound extreme, but oil went up 10x from the late ’90s to 2008. Capital flow into a small market like gold can have that effect—even faster than oil.

Anthony Milewski:

So you’re saying gold doesn’t need a huge global reallocation—just a shift in capital flow could send it parabolic?

Simon Marcotte:

Exactly. Gold’s been deeply out of favor. But liquidity in the system today is immense, and everything moves faster. Tavi Costa’s analysis shows that if you value U.S. gold reserves against U.S. debt like in the 1970s, the implied gold price is $24,000. And today’s institutional and geopolitical instability could push that even higher.

Christian Purefoy:

You’ve also talked about central banks and sovereign buying—China in particular.

Simon Marcotte:

Right. China’s officially encouraging gold ownership. A recent pilot allows 10 insurance companies to put 1% of their assets into gold—that’s $27 billion, nearly 300 tonnes. That’s 10% of China’s official reserves. And that’s just one policy move.

Anthony Milewski:

If there’s all this demand, why haven’t gold stocks responded? We’re still not seeing 5x or 10x returns in equities.

Simon Marcotte:

Because Western fund managers are still anchored to real rates. They’ll only pile into gold when those rates go negative. So far, gold has moved on central bank and Asian demand. The big re-rate in equities will come when Western capital shifts. It’s the same setup as oil in 1998—managers doubted $12 oil would hold. Then came the flood.

Christian Purefoy:

Are there any regulatory changes pushing this forward?

Simon Marcotte:

Yes—Basel III. Starting July, physical gold will be valued at 100% on bank balance sheets, up from 50%. That’s a game-changer. Just the six largest U.S. banks hold $2 trillion in high-quality liquid assets. A 5% gold allocation would equal $100 billion—or 1,000 tonnes of gold. That’s massive.

Anthony Milewski:

So if central banks go from 5% to 20% gold reserves, and banks follow suit, the price effect could be monumental.

Simon Marcotte:

Absolutely. And this isn’t inflation per se—it’s real rates. We could see financial repression, where inflation outpaces interest rates. Whether through weak growth or engineered policy, it pushes gold higher.

Christian Purefoy:

You’ve mentioned the Trump administration potentially driving this?

Simon Marcotte:

Yes. The economic blueprint from Stephen Moore outlines steps to lower rates and weaken the dollar. Tariffs are part of it. Even more aggressive tools—like user fees on foreign bondholders—are being discussed. These are wartime financial tactics aimed at rebuilding U.S. manufacturing and self-sufficiency.

Anthony Milewski:

What about gold mining equities? If gold hits $20,000 or $30,000, what happens to miners?

Simon Marcotte:

If costs are $2,800 and gold is $20,000+, these companies will generate immense free cash flow. The rerating will be spectacular. Especially for juniors that don’t need high prices to be profitable.

Christian Purefoy:

Does jurisdiction matter? Will Canada and U.S. miners outperform African peers?

Simon Marcotte:

Yes. In today’s market, why take geopolitical risk when you have deeply undervalued, de-risked projects in Canada or the U.S.? There’s more M&A potential and fewer risks with North American juniors right now.

Anthony Milewski:

So what’s your timeline? Nine years like oil from ’98–’08?

Simon Marcotte:

Possibly faster. We’re already in motion. Central banks are buying. Insurance companies are buying. Basel III shifts valuation. We could see $30,000 gold in less than a decade.