“The five-year bear market for gold is over and we are at the beginning of a new bull market,” he told BNN.

During strong gold bull markets, the price of gold often hits a one-to-one ratio with the Dow Jones industrial average, says the chairman of Franco-Nevada Mining (FNV.TO -0.16%) and former president of Newmont Mining.

That means gold could surge to US$8,000 an ounce or even higher, he says.

“In 1980 gold was at US$800 and the Dow was at 800; in 1934 gold was US$36 and the Dow was at 37 – where is the Dow today?” he asks BNN’s Catherine Murray. “Do I know it’s going to go back to 1:1 – I don’t know… even if it gets to 2:1, that’s US$8,000 – I’m slightly optimistic.”

Gold could hit US$8,000 as bull market returns: Pierre Lassonde