Weekend Show – Sat 24 Sep, 2011

Wow, everybody still okay? No nervous breakdowns? What a week in the markets!

Click download link to listen on this device: Download Show

In this show Al discusses:

  • Segment 1 – Roger Wiegand and Rick Ackerman recap the events of the past week and offer opinions.
  • Segment 2 – Yale Simpson remarks on the markets from a resource executive’s perspective.
  • Segment 3 – Del Steiner and Randy Turner continue the discussion started in the prior segment.
  • Segment 4 – Sean Brodrick, of Weiss Research, comments on the prior week.
  • Segment 5 and Segment 6 – Brien Lundin discusses gold, resource companies and The New Orleans Investment Conference.
  • Segment 7 - Peter Grandich remains bullish.
  • Segment 8 – Marshall Berol wraps up the show with comments about the raising of the margin requirement yesterday by the Comex for gold, silver and copper.



Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show


Featuring:
Al KorelinRoger WiegandYale SimpsonDel SteinerRandy TurnerSean Brodrick
Brien LundinPeter GrandichMarshall BerolRick Ackerman
View related posts on: , , ,

Comments:
  1. On September 24, 2011 at 1:12 am,
    Mike says:

    Al,
    I know that many people have been scared silly by the past weeks’ activities, but this type of thing has happened before, will happen again, but gold and silver WILL rebound, no doubt about it, because fundamentally nothing has changed in terms of the macro economic problems facing the U.S. and Europe.

    • On September 26, 2011 at 7:26 pm,
      Big Al says:

      Hi Mike,

      Of course, I could not have said it better myself.

      Best,

      Big Al

  2. On September 24, 2011 at 3:40 am,
    James B from Canada says:

    I bought 50 ounces of silver coins ( Maple Leaf 1 oz. @ $32 ) using my Visa and invested every penny I had on standby in my Cdn. IRA in PSLV. Painful. Rick is scary. The impact will weaken men.
    But at these prices, the Chinese are going to buy more than before.

    Ultimately, the West will have less silver to use. This will kazzoom the price very high.

    Our leaders are ruining us.

    Only thing to do is keep buying and stop crying.

    Hope the worst is over but ….

    • On September 24, 2011 at 5:13 am,
      Giuseppe Valente says:

      Hi James,
      If you are going to buy again ifand when it goes down again that is wise. otherwise I would have waited until the storm calms comcerning silver. A lesser extent Gold. However Peter Grandich which I repect alot is very bullish. Rick also seems wise. Listen to Ben Davis on KWN he is very wise as well. It is harder for me because I am on margin buy am only invested in Gold Miners. I heard that Banks sold their gold because of lack of Capital. Hedge Funds sold because of margin Calls and remeption calls as well. Is it not sad and scary to rely on the Chinese and Asians buying to save our ass. What would you do if you were them. Would you not wait for us to sell until it is a screaming buy ? People are saying they are hoarding I certainly hope they do not become wise and wait for lower prices.
      Here is a good article about what happen from Mish:
      http://globaleconomicanalysis.blogspot.com/2011/09/why-did-gold-and-silver-plunge-no-its.html
      Thank you Joe

      • On September 24, 2011 at 5:55 am,
        James B from Canada says:

        Thank you for the link to Mish. Yes I read all I can find too.

        I like Ben Davies on KWN. He says that by year end silver will bounce back. I listened to Gerald Celente but he is a crypto leftist jew hater. We have exchanged emails. He has called “QE” white jew boy talk. And I have heard him on 580cfra with Michael harris, another crypto Jew hater. Obsessed with the Palestinians. White europeans invaded North America, shipped natives into camps to rot. But the whipping boy are the zionists.

        I do not believe that the Chinese growth is going to fade as Mish says. Its going to slow down but not fade. Plus, much of silver is used in high tech applications not low tech. Plus it is needed to replace the elements in these high tech machines splus the investment face plus the other apps The time it takes to bring a mine ( I know I am a CFO of a new mining company ) to fruition, silver will rebound. No so cuando. I dont know when but the long term issues, it will rebound.

        Yesterday, kitco.com was very busy with buyers. It now ships most of its stuff to the US. Cant even buy bars from Canada, just coins.

        Who is buying these bars? I assume Arab muslims and Chinese.

        THERE IS NO WAY OUT. This was a ploy by the Fed to increase liquidity and scare people . No competition with their junk bonds. Europe is over. Their banks are over.

        Its sad, I am worried but I am buying more this week. 20k.

        • On September 24, 2011 at 8:37 am,
          gundhi says:

          James B., as you exchanged emails with Mr. Celente, did you see the “white J**” phrase in writing? I do remember hearing him use a phrase, and to me, it has always sounded like “white shoe boys.” If I’m not mistaken, there aren’t many dark-skinned Jews around in banking, so I don’t get the point of mentioning the alleged complexion.

          • On September 24, 2011 at 5:40 pm,
            Matt R. says:

            He always says “white shoe boys.”. Get your hearing checked , James.

          • On September 25, 2011 at 10:18 am,
            James B from Canada says:

            If You are right., I apologize. I will get more than my hearing checked. My heart, my nerves and my pulse, if silver goes back to $18.

      • On September 26, 2011 at 7:30 pm,
        Big Al says:

        Thanks Joe,

        Do you read all of Mish’s stuff? I shared a podium with him at the Chicago Resource Conference. Seems like a reasonable guy.

        Best,

        Big Al

    • On September 26, 2011 at 7:28 pm,
      Big Al says:

      Yep James,

      I hope the worst is over. For the life of me, I don’t understand how the prices of pms can stay at these levels.

      I walked by a bullion dealer in Vancouver, B.C. today and there were somewhere in the neighborhood of 100 people standing in line to do a transaction. I heard that the majority were buying gold and silver.

      Best,

      Big Al

      • On September 26, 2011 at 7:34 pm,
        Big Al says:

        Hi Guys,

        I find it hard to believe that he used the phrase “white jew boys”. Any body with a modicum of sense would not say that because it is totally irrelevant to the discussion. Not to mention that it would be suicide from a career advancement standpoint.

        James B, please let us all know what you find out.

        Best to all,

        Big Al

  3. On September 24, 2011 at 5:31 am,
    Giuseppe Valente says:

    Hi Al,

    I never said you guys were crazy. I have to be invested in something more stable (Gold)because I am on margin. Did you ever consider that I am more bullish that you people are because of my margin position. Another thing I am sorry but stating pretty boldly and confidently (I may add) that expect Silver to have a good month in September was wrong.
    Lastly you are invested 60% in PM you stated. Ok But since when have you been invested? If you were invested years ago that is easy to say and stay the course. However I came into the Picture at the beginning of the year and on margin invested not 60% but over 100%. So please consider this. Thank you Joe

    • On September 26, 2011 at 9:29 pm,
      Big Al says:

      HI Joe,

      Please refer to the e-mail which I sent you. I never said you said that we were crazy.

      I have too much respect for your intelligence. You are a valuable member of this forum.

      Best,

      Big Al

  4. On September 24, 2011 at 6:41 am,
    Bobby says:

    Hi Big Al,
    In segment 4 you mentioned that people with high interest loans will refi for better rates. Unfortunately, most will not qualify for these lower rates, nor will banks want to write these loans.
    Bobby

    • On September 26, 2011 at 9:30 pm,
      Big Al says:

      Hi Bobby,

      The issue of qualification for the loans will be very interesting!

      Best,

      Big Al

  5. On September 24, 2011 at 8:12 am,
    naomal says:

    Sorry, but if I can ask 1 simple question.

    If gold is such a safe haven then why is it getting hammered like everything else? I understand that the fundamentals have not changed (i.e. all economies are in the doghouse). I also understand that silver is very volatile & so dive in silver is not such an issue,….but gold??

    This is most puzzling to me. Can anyone clear it up for me?

    • On September 26, 2011 at 9:32 pm,
      Big Al says:

      Okay Mr. Naomal,

      Every consider that the financial powers that be may want to shift attention away from gold.

      Not saying that is the case, just suggesting that you consider it from this prospective.

      Best,

      Big Al

  6. On September 24, 2011 at 8:58 am,
    Vankeefer says:

    I would say this is the year of transition. The world is economy is like a broken down car that all of the world’ s leaders keeping putting patch jobs on. It will not take us any further. It was great while it lasted, but we have to realize that you can not borrow your way to prosperity.

    It is time to go back to basics. Taking a close look at TSX Venture chart I see a lot of bargain hunters they were steadily buying as the market was dropping. I agree with BoB Chapman and Peter Grandich that we were are forming a base here for the precious metals and for the mining shares. In my opinion the market sell off is because the world is shifting away from financial stocks and into precious metals and mining shares. It may take awhile for this base to form, but it will be the launching pad for the second leg of the bull market in commodities.

    • On September 26, 2011 at 9:34 pm,
      Big Al says:

      Hello Mr. Vankeefer,

      We brought up this possibility about two years ago on our show.

      I think today, as I did then, that this could very well be the case.

      Time will tell,

      Big Al

  7. On September 24, 2011 at 9:27 am,
    Tex says:

    Well, the events of the last few days makes me ask a question that perhaps Big Al or the Sage Trader Rog can address (and I don’t mean the sage as in the Artemisia genus).

    Over the last 5 or 6 years, do CME margin hikes positively correlate with big gold/silver sell-offs?

    As an aside, it is interesting that the official Fed announcement of Operation TWIST II preceded the margin hikes….almost enough to make me ponder on whether the margin hikes were designed to drive money over to the bond market…..but I’ll put my aluminum Stetson back on now (can’t afford a silver one, let alone a gold one any more).

    • On September 24, 2011 at 12:10 pm,
      Jerry says:

      Let’s” TWIST AGAIN LIKE WE DID LAST SUMMER”….(Chubby Checker..1960)

      “OPERATION TWIST”…is the song they will be playing next summer,
      when all this comes apart, and gold is at $2550 and silver is $65

    • On September 26, 2011 at 9:37 pm,
      Big Al says:

      HI Tex,

      Very interesting point.

      I am in agreement with your thoughts regarding the official Fed announcement of Operation Twist 2 and the increase in margin hikes.

      I have to say again that we live in very interesting times!

      Best,

      Big Al

  8. On September 24, 2011 at 9:57 am,
    Ken says:

    “Kooks, nuts and tin foil hat wearers…nuts and a few crazies.” Hah, that Peter Grandich! I always knew I was in good company!

    • On September 24, 2011 at 10:50 am,
      Tex says:

      Aluminum and tin are different elements.

  9. On September 24, 2011 at 10:05 am,
    Ken says:

    Dang, silver down 24% for the week.

    I believe that Chive Mound guy saw this coming. And I guess Robert J Moriarty was not bullish on silver either.

    But if you really believe that none of the problems the politicians and banksters have created then you probably believe gold and silver are going higher. So would you rather by silver at 30 or 40?

    • On December 13, 2011 at 1:57 pm,
      Jerry says:

      I’m grateful you made the post. It’s celraed the air for me.

    • On December 14, 2011 at 3:38 am,
      qltarpje says:

      nNSZvM lrjwxiucrsvk

  10. On September 24, 2011 at 10:38 am,
    Clay says:

    Guys, you are all part right and part wrong, the markets are like Don Coxe is saying, dysfunctional and represent “The Deficient Frontier”, but I do not think any one person that I have read or listened to has an accurate assessment or prediction laid out including Don.

    http://www.investmentpostcards.com/2011/09/22/don-coxe-%E2%80%93-investment-recommendations-september-2011/

    Repression is the key operative around the World as governments attempt to prevent failure of established economical and political systems. Because the US is the worlds major power it has the greatest distance to fall even though most other nations don’t what that to happen just yet. Political power is declining rapidly especially in Western nations. Central banks are attempting to fill this gap by using extreme measures such as market manipulation and currency war. Regardless, both political and banking continues to fail.

    Uncertainty is extreme right now but likely to get much worse because the US does not have chance for change through new leadership until 2013. The Fed is trying to keep the economy from drowning by treading water until new leadership emerges, but it does not know when or if rescue comes. They probably know that they can not depend on new leadership so the Fed and its banks are on their own and will have to rescue themselves. This is creating even more political instability, market swings and instability around the World.

    As things slide, world wide depression is the probable outcome starting this fall and I do believe Roger has this point understood in that QE will be coming in last ditch effort to forestall the depression until after the next election. A depression starting now would give the US a chance for the election of a proper leadership in government next year, but any QE or kicking the can down the road further is likely to cause something much worse than even a depression.

    • On September 26, 2011 at 9:41 pm,
      Big Al says:

      How can any rational person believe that really hard economic times (i.e. a depression on a global scale is not just around the corner?

      I personally am preparing myself and my family for that scenario.

      Time will tell. Let’s remember this comment a couple of years from now.

      Best,

      Big Al

  11. On September 24, 2011 at 10:46 am,
    Clay says:

    Roger: Like you I also believe and would expect QE to begin soon, but we must be careful what we wish, because we just might get it and in the end it may not be what we thought. I am looking at this from not only an economical sense, but from a perspective of liberty, freedom and happiness.

    • On September 26, 2011 at 9:43 pm,
      Big Al says:

      Hi Clay,

      Are you inferring that the concept of liberty, freedom and happiness may disappear. Let me say that I am truly concerned.

      Best,

      Big Al

  12. On September 24, 2011 at 1:29 pm,
    Tom Johnson says:

    Don’t take my comments the wrong way, I’m just trying to get some opinions on the current market in gold and silver. I hear you guys all talking about how this is a correction in the gold market, but weren’t they saying that in the 80′s when gold went from 800 to 200? What makes this time different? How can you be sure that we’re not going back to 800 an once for gold and staying there for 8 or 9 years? I’d like to hear you give some reasons why this can’t happen. After all aren’t these the exact conditions where gold should be going through the roof? Just trying to get some perspective. Thanks, Tom

    • On September 24, 2011 at 5:42 pm,
      Matt R. says:

      The major difference between then and now is the amount of debt in the system and the fact that gold and silver are global markets.

    • On September 26, 2011 at 9:48 pm,
      Big Al says:

      HI Tom,

      I personally believe that the basic economic fundamentals are very much different today than they were back in the early 80′s.

      Then it was a case of inflation alone. Today it is a case of global economic collapse, a catastrophic event in the Middle East, a shift in major global economic power positions, etc., etc., and more etc.

      The economic situation, in my mind, is so much more volatile today than it was back then that the comparison is almost nonsensical.

      Best,

      Big All

  13. On September 24, 2011 at 4:12 pm,
    ben says:

    i dont have a clue where things are headed, i just wanted to mention that at our local pm store people were lined up 40 deep (ive never seen it) and buying much much larger than usual.

    • On September 24, 2011 at 5:42 pm,
      Jerry says:

      thanks for the post…good mention….maybe the herd is starting to move
      yeppie ki ya…move along little doggie.

    • On September 26, 2011 at 9:49 pm,
      Big Al says:

      Hi Ben,

      Must have been Friday night and the store was getting low on Bud Light!

      Best,

      Big Al

  14. On September 24, 2011 at 8:39 pm,
    Vankeefer says:

    There is an interesting article on Of Two Minds website called, “Bleeding the patient, Modern Economics and the Symbolic Economy.” The article compares modern economics to the junk science of 17th century medicine.

    I think one of the best parts of the article is this:

    “Simply put, no economy can consume more than it generates in real surplus. Rather than face up to this constraint, the Fed creates phantom financial wealth which ends up in the hands of politically influential concentrations of wealth–in essence, a self-referential cycle of creating phantom wealth to serve the interests of current holders of phantom wealth.

    Everyone with phantom wealth is of course committed to maintaining the fiction that the symbolic wealth they “own” holds sway over real wealth, i.e. minerals, water, skilled labor, productive land, etc. ”

    The full article is here:

    http://www.oftwominds.com/blog.html

    • On September 24, 2011 at 11:43 pm,
      Ken says:

      Very good article.

      Big Al, make sure you read it and maybe you can get the author on your show sometime.

      Everyone should watch this video. I posted it a while back and Big Al said he’d get the guy on his show sometime.

      http://www.youtube.com/watch?v=Cd-SLRyuRq0

      • On September 26, 2011 at 9:51 pm,
        Big Al says:

        Thanks Ken and Vankeefer,

        Truly appreciate you input. And, yes I will try and get him on our show.

        Best,

        Big Al

  15. On September 24, 2011 at 8:50 pm,
    Karen says:

    Manipulation, intervention, algorithmic trading and a keynesian government that keeps spending is a receipt for disaster. Combine that with currency devaluations around the world and it really does not matter what the price of gold and silver is along the way to the mania.

    • On September 25, 2011 at 8:32 am,
      Bill says:

      All good points, Karen.

      Also, I just read elsewhere that the CME raised margin requirements on gold, silver and copper 21%, 16%, and 18%, respectively. Nothing like piling on! The timing couldn’t have been more perfect during a steep stock market sell out to inflict maximum chart damage to the precious metals. After all, precious metals area measure the damage being done by the Fed and other foreign centrals banks to their currencies–ergo, our life savings..

      As the old analogy goes, you can’t boil the frog if things heat up too fast because the frog senses what’s coming and jumps out of the caldron. So when investors catch a glimpse of how fast central banks are debauching their currencies, the only recourse for these money handlers is to suppress and manipulate precious metal prices through leasing agreements with the bullion banks and margin calls in the open market.

      BTW, I understand the Fed has opened it’s window to aid the EU! Guess whose going to pay for that largess? Hint, it won’t be Uncle Ben; he’s just the postman!

      I don’t buy AU & AG to get rich. I buy it to protect the wealth I’ve spent my life earning. As long as the Fed keep treating the symptoms and trying to paper over the problem, precious metals will be forced higher. It’s a neurotic paradox. Eventually these charlatans are going to run out of margin calls, funky bookkeeping and paper metal to lease, leverage and manipulate the precious metals markets in attempts to mask their tried, true and FAILED policies. We are already starting to see it: Emerging market nations are taking delivery of their gold (out of western bullion banks) and storing it at home–like Venezuela for starters.

      Over all, I like Al’s idea for now: Sit tight, and I might add: turn off the TV.

      • On September 26, 2011 at 9:54 pm,
        Big Al says:

        Hi Bill,

        Yep, sitting tight right now makes a lot of sense to me.

        I also do not buy gold and silver to make “instant” profits. I buy them as a last resort for liquidity. Call me crazy.

        Best,

        Big Al

  16. On September 25, 2011 at 9:49 am,
    Hemal says:

    Hi Al, Rog,
    I am shocked that silver got so hammered.
    I have one big worry for our PM stocks. We have bemoaned the fact that the stocks did not follow the bullion prices over the Summer. One of the reasons was probably that the wider Market did not believe that $1800 gold, $40 silver was a realistic long term price.
    I hope that this week’s price action in PM price does not lend weight to these people’s view. If so, our PM stocks are going to remain in this lower range for a while, even if the general stock markets recover soon.

    • On September 26, 2011 at 9:57 pm,
      Big Al says:

      Hi Mr. Hemal,

      As I write this comment, gold futures are up $47.90 and silver futures are up $1.16.

      We’ll see who are the wise men a few short months from now.

      Best,

      Big Al

  17. On September 25, 2011 at 11:03 am,
    dan says:

    THE ONLY WAY FOR THE $USD TO LOOK GOOD AND US TREASURIES TO RECEIVE
    AL

    INFLOWS IS FOR GOLD AND SILVER TO BE TRASHED AND THE FLOODING OF THE FUTURES MARKET OF GOLD AND SILVER WILL SHOW A BLIND MAN THE TRUTH..MORE PAPER TRADES THEN HARD ASSET ABOVE GROUND AS WE SPEAK…RETHINK YOUR OPINION..MAYBE

    • On September 26, 2011 at 9:59 pm,
      Big Al says:

      Hi Dan,

      My opinion as of Monday evening stands. Look at the futures prices as of 10 p.m. Monday, Sept. 26th.

      Best,

      Big Al

  18. On September 25, 2011 at 5:39 pm,
    Giuseppe Valente says:

    What are you all doing this Sunday evening. Would any of you be following the Gold and Silver prices by the way. I am watching a sit com. No I am not. What you think I’d be doing.

    • On September 25, 2011 at 9:32 pm,
      Bentnail says:

      YUP:

      Getting hammered again!!!

    • On September 25, 2011 at 10:23 pm,
      Superdobbs says:

      Dan,

      I’m watching the price of silver.

      Waiting for another 5 dollar drop and then I’ll load up.

      Cheers,
      Superdobbs.

      • On September 25, 2011 at 10:42 pm,
        Superdobbs says:

        Sorry, meant to say, Giuseppe.

        • On September 26, 2011 at 10:01 pm,
          Big Al says:

          Hi Guys,

          Trader Rog and I both are convinced that as of Monday evening, the precious metals markets are changing.

          Oh well, I guess we are both delusional!

          Best,

          Big Delusional Al

  19. On September 26, 2011 at 1:35 am,
    Bentnail says:

    HA HA HA — READ THIS ARTICLE: http://www.reuters.com/article/2011/09/26/markets-precious-idUSL3E7KQ06W20110926

    Me thinks they got things a little bit backwards (you will see what I mean).

    • On September 26, 2011 at 2:38 am,
      Bentnail says:

      In case you missed it:

      “With recessionary pressure piling up, flight to safety
      means flight to really safe investments, and those are the U.S.
      dollar and U.S. Treasuries.”

      HA HA HA

    • On September 27, 2011 at 11:50 am,
      Al Korelin says:

      HI Bentnail,

      Couple of comments from me after I read this article.

      First of all, “ultimate safe havens of cash and the dollar? Ultimate safe havens? What’s that all about?

      Secondly, “really safe investment – U.S. dollar and U.S. treasuries” Common, who’s kidding who!

      Thirdly, “the debt crisis in Europe bad for precious metals?” In my feeble mind (I guess) it would seem that the European debt crisis would ultimately be very good for gold and silver.

      Rather than take each point and comment, all I can close with is that I comment (noon Tuesday pacific daylight time) gold is trading at $1650 in the spot market.

      Wow, who pays this guy to write?

      Big Al

  20. On September 26, 2011 at 3:10 am,
    Bentnail says:

    MATTHEW:

    You contradicted yourself when you were talking to Cocoa about hyperinflation. You said:

    “You apparently don’t know that hyperinflation is always the result of a collapsed economy.”

    You followed that up by saying:

    “The 1970′s was not an example of hyperinflation.”

    COCOA:

    You must not read the bible — it says that in the last days (which we are clearly entering into), a quart of wheat will cost a days wages. That sure sounds like hyperinflation to me.

    • On September 26, 2011 at 3:14 am,
      Bentnail says:

      COCOA:

      My mistake — it could also mean that there is simply a shortage of grain (thus a price increase – supply and demand)

    • On September 26, 2011 at 10:38 am,
      Matthew says:

      Hardly a contradiction Bentnail. First, to say that hyperinflation is always the result of a collapsed economy, is not to say that hyperinflation MUST result from a collapsed economy. As you know, hyperinflation is not natural, it is a choice. As I stated, no collapsed economy = no hyperinflation. Second, the 1970′s were hardly best described as “collapsed.” There were net savings per household; very manageable household and national debt; little revolving debt; wages and home prices that nearly kept up with inflation; significant exports; and top creditor nation status. None of these factors are true today. There was high inflation and a stagnant economy (stagflation), not hyperinflation.
      We still do not have hyperinflation, but it is coming. There has been NO net deflation over the last decade. In the 1930′s, the DOW fell 86% when measured in both dollars AND gold. Today, the DOW is down a similar % over the last decade — BUT, ONLY when measured in gold. When measured in dollars, the DOW is flat. The DOW has dramatically under performed ALL real assets (with the exception of real estate, which is really a debt instrument with bankster-esqe leverage built in). Were it not for INFLATION, the nominal price of the DOW would be in sync with the gold price. It’s impossible to make a point with deflationists since they refuse to use the proper definition. An older dictionary gives the Austrian definition (decreased money supply), while most new dictionaries give the corrupted Keynesian view: reduction of the general level of prices. Note that even the Keynesian view places no added importance on asset prices as Mish and his followers do. So by BOTH definitions, we CLEARLY do not have deflation except for these brief downdrafts such we’re seeing currently. Even house prices remain higher than they were 10 years ago. However, when looking at items that do not rely on credit availability, prices are up dramatically. The money supply has tripled and the GENERAL price level is up. Printed money is nothing more than printed demand. Since no one can “print” supply, prices WILL go up. Not immediately, and not symmetrically, but ultimately, the market will do an accurate accounting and reflect the printed demand in higher prices. Don’t be fooled by short term volatility. The trend is still up.

  21. On September 26, 2011 at 6:13 am,
    Martin C says:

    This is a good place for us all to find solace. I see lot’s of references to the Bible. As you watch the markets, be careful not to take the Lord’s name in vain!

    LIke many of you, I have invested in PM’s and related miners to protect my wealth for better days. Following the wise words of Rob McEwen, we have entered a time in which individuals will have to take risks to survive, since ultimately “safety” will become a place to be shorn. Nevertheless, if like me you have added to positions since the beginning of this year, you may be underwater on your investments. It’s pretty hard to sit tight at this time. Even harder to step in and grab a discount when the “blood is in the streets”. That may be what you thought if you stepped into the breach back in May, or August. Real bad just seems to get worse!

    However, regardless of the nominal price of your investments, Ask yourself if your investments still retain value. At this moment, if the Federal Reserve will support the long end of the yield curve, what will support the short end? The answer is, your fear.

    My choice at this time is to stay the course, and perhaps lift my head from the fray and look to other areas for the opportunity. I believe that in an extreme liquidity crisis, many will suffer on both sides of paper trades, such as ETFs, where cash bail outs may be necessary not for the losers, but the winners as well!. Regardless of the climate, Metals and shares in metals reserves will retain value!

    At least, that’s my strategy. Keep the faith with those that have advised you, and remember what Kipling wrote:

    If you can keep your head when all about you
    Are losing theirs and blaming it on you,
    If you can trust yourself when all men doubt you,
    But make allowance for their doubting too;

    Hang in there everyone!

    • On September 26, 2011 at 8:41 am,
      Bill says:

      Martin; All good thoughts, but I think we’re beyond a liquidity, at least here in the US. Now, it’s a confidence crisis, where people no longer trust the propaganda and realized just how rigged and detached from reality that the once free markets have become–in short, we have an INTEGRITY crisis in sovereign governments, their central banks and bullion banks, and the stock markets in general.

      Instead of lifting the world up to US standards, the US is seeking parity by sinking into a banana republic burdened by the confluences of unbridled greed, graft and corruption. Thus, it’s increasingly difficult to distinguish between organized crime and centralized planning.

      Until every last grandma is thrown under the bus (along with her life savings) these money handlers will continue to confiscate ever once of wealth they can swindle out of the masses by than debauching their currencies. This is not God’s work, and this is not a time to be humble, timid or scared as some have hinted. It’s time to be angry and demand that out masters clean up their act. “Know them by their deeds, not words.”

      • On September 27, 2011 at 12:19 pm,
        Al Korelin says:

        Hi Bill,

        All the comments above are very valuable.

        I do agree with you completely that “it’s time to be angry and demand that our masters clean up their act.”

        Don’t you think that is what the current group of Republican candidates is trying to accomplish?

        Let me answer that from my perspective.

        I think that they are, but that the only one who is doing it for all of the right reasons is Ron Paul. I could be wrong, but I think that Messers Perry, Romney and Ms. Bachman will self-destruct.

        I have a gut level feeling that Mr. Cain may be the wild card here.

        Would like to hear your thoughts.

        Big Al

  22. On September 26, 2011 at 11:45 am,
    cocoa says:

    People are gunshy about the 80′s gold collapse, but it’s safe to say nothing has changed in the last week that makes me feel confident that stocks are undervalued or the governments can avoid defaulting.
    Twist needs people racing into long bonds to work.
    You need to remove barriers from Treasury sales(good stock market, gold as riskfree,silver as money, Swiss Franc weakness) in order to sell the Bond dream as the last chance out of Dodge.
    The gold price as stated is a paper futures market. Anybody in the know understands that the spot price is not the real price with paper products being 50-80 to one physical.
    Also, the hyperinflation paranoid (gold bugs) will drop gold the minute the dollar shows any sign of resilience. So, they are really weak, weak hands ho do not understand gold’s position as a reserve currency(not just inflation hedge.)
    Also, I may add that gold miners may experience better margins even in the face of a falling spot price because all other costs are going down faster. Oil, labor, lumber and so on.
    On the other hand, many miners like Exeter etc. seem to count the price of copper in their values and as copper goes down the drain(pardon pun) with economies those type of miners may be affected despite a tough gold price.

    • On September 27, 2011 at 12:21 pm,
      Al Korelin says:

      Hi Cocoa,

      Great comment about the expenses going down for the mining companies. Now, if they just stay down.

      Big Al

  23. On September 26, 2011 at 12:25 pm,
    Tex says:
    • On September 26, 2011 at 1:10 pm,
      John W. Robertson says:

      I watched it…what fun!

      Look, when the day comes that we don’t collectively care about others, then there’s a big problem. I do wish the EU could sort itself out expeditiously. Ditto for the US. I’d much rather the irrational exhuberance of the 1990′s to today’s uncertainties. I’d also rather a 3.8% unemployment rate…less crime, more choices, more happiness for all.

      That said, this guy says very clearly he’s a trader, and he responds to what’s happening, and not what he wishes would happen. The anchor asked him what needs to be done to fix Greece or the EU. If that’s what they wanted to know, the Beeb should have got Christine LaGarde on or Angie Merkel on, not a trader. The anchor was leading the interview to a certain conclusion. The trader, instead, tried answering the question he wished he was asked…suggesting what individuals need to do to save themselves, and that government cannot fix the problem.

      Actually, we a few more like him, the EU might have a chance yet.

      • On September 26, 2011 at 10:07 pm,
        Big Al says:

        Hello Gentlemen,

        Your comments are wonderful and, as I have said many times, I learn so much from all of you.

        Best,

        Big Al

      • On September 27, 2011 at 12:31 pm,
        Al Korelin says:

        Hi Tex, and John W,

        Very, very interesting interview.

        I believe that the man has a very good point. Isn’t that just what we discuss, for the most part, within this forum?

        Realizing that all is definitely not coming up roses is a very important realization in today’s environment.

        By all of us learning from each other we can certainly be much better prepared for the event that he predicts will occur within a year.

        Thanks for drawing this to my attention.

        Big Al

  24. On September 27, 2011 at 8:56 am,
    carlton says:

    Sounds like most people here are grumpy about inflation not making them rich by sending gold and silver higher. Remember what goes up must go down.

    Remember Carlton’s rule: The markets will take out the largest number of people with losses when you lest expect it and it is only when you think you’ve got it right that things apparently get worse.

    Memorize this and if you have wisdom you will profit enormously or save yourself from substantial market losses.

    What shall it profit a man, if he shall gain the whole world and lose his own soul? Or what shall a man give in exchange for his soul? Mark 8:36,37

    Until or if gold gets above $1700 and preferably $1774 gold is vulnerable to further weakness….down to $1475-$1500. Silver’s chart looks worse. There’s more technical damage there. There’s more technical damage on silver and it could be several months before we see new highs.

    I exited my S&P 500 put trade with a 40% profit a few days ago on S&P weakness before this recent rally and look to possibly go short again looking for 900-1000 before too long.

    • On September 27, 2011 at 12:45 pm,
      Al Korelin says:

      Hi Carlton,

      Yes, my friend, what goes up does also go down.

      And yes, when you least expect it things often times do get worse!

      Great insight!

      Big Al

  25. On February 28, 2013 at 11:16 am,
    timberland ブーツ says:

    Thanks , I have recently been looking for information about this topic for ages and yours is the best I have discovered till now. But, what about the bottom line? Are you sure about the source? timberland ブーツ http://www.timberlandgekiyasu.info