What do mining executives say about today’s markets?

Big Al
November 21, 2011

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    Nov 21, 2011 21:17 PM

    The real problem lies with The Federal Reserve which controls the US Government. The real answer is to raise the interest rate thus forcing up the price of money but if they do they run the risk of bringing about a terrific smash in the market. Furthermore they fear the further accumulation of gold and the effect this might have on the world trade. The US government does not want to pay a fancy rate for money for it’s own current use. Deflation is the disaster waiting to happen. It’s the 1930’s revisited.

      Nov 21, 2011 21:09 PM

      HI Shawn,

      I guess we can just hope that a rabbit is pulled out of the hat!

      Big Al

    Nov 21, 2011 21:37 PM

    Hi Al,
    I agree with your guests. The main point is that fiat currency will continue to devalue. PMs are necessary to preserve wealth. I am holding onto my stocks and still accumulating physical.

      Nov 21, 2011 21:10 PM

      HI Karen,


      Big Al

    Nov 21, 2011 21:27 PM

    Hey Al,

    What is the play for the Otis buy? Sell when it doubles? Hold out for triple? And who do you use for your broker?


      Nov 21, 2011 21:12 PM

      HI Lynn,

      Can’t tell you what to do. Suffice it to say that I gave my three days notice today that I am buying a bit on Wednesday. I will do the same when I eventually sell some.

      I have four brokerage accounts all of which are great. Haywood Securities, Canaccord Wealth Management, The Encompass Fund and Paulson Securities with Joe Blackwell.


      Big Al

        Nov 21, 2011 21:18 PM

        Thanks so much for getting back to me on that. I really don’t mean to be so forward.


    Nov 21, 2011 21:44 PM

    If you look at history, it’s never the central banks that raise interest rates first — it seems like they do, but in fact they always follow the markets. See the work of Bob Prechter and Bob Hoye (example: )

      Nov 21, 2011 21:15 PM

      HI Dirk,

      Thanks for the link.

      Big Al

      Nov 22, 2011 22:24 AM

      The thing Hoye doesn’t like to acknowledge is the fact that the Fed, of late, IS the market.

    Nov 21, 2011 21:05 PM

    Hi Big Al,

    What is the answer to all this global debt problem? There has to be a solution. Austerity? (I have to believe that the tough decisions will be taken in order to avoid a collapse) Austerity measures for the next 10, 20 years if necessary?

      Nov 21, 2011 21:32 PM

      HI Robert,

      I could write a major term paper on this question. Instead, here is my quick and dirty off the top of my head answer.

      I have to go back to basics and that involves, yes, austerity. Societies (at least a lot of them) have been living way above their means. That simply cannot continue.

      Unfortunately, these same societies cannot afford to continue many or most of their entitlement programs. People who have the ability have to assist those who are truly in need (Important to realize that I mean TRULY IN NEED) should do that.

      Families need to take care of their own. Responsibilities along these lines have been shifted to government agencies. This is both morally and from a responsibility standpoint wrong.

      Those folks who are taking entitlements illegally need to be stopped. An example is paying for illegal immigrants’ schooling, certain amount of medical care, etc.

      At the risk of being simplistic, I think that in the U.S. we need some “make-work” programs involving improving infrastructure.

      The tax structure in our country needs to be changed to eliminate all loopholes. We need a usage tax because I believe that it is fair and I am in favor of a flat tax in addition to that.

      This is not a quick and easy question to answer. I think from what I wrote above you get my drift.

      Thanks for the question,

      Big Al

        Nov 21, 2011 21:57 PM

        thank you. do you believe that all the things you mentioned can and will happen?

      Dec 13, 2011 13:05 PM

      It’s good to see someone tihnking it through.

    Nov 21, 2011 21:35 PM

    Keith: W0W, you are my Top guy today, you hit it square to the point. I would be proud to work for you and would give you everything I got.

    Al, Thank you so very much for Keith’s points. He is absolutely correct in everything he said, people don’t know what to do, going back and forth between cash and equities trying to find something safe, but only Real money is safe. I used to think that 1/3 Gold and Silver, 1/3 cash and 1/3 equities or investment was the right way, but more recently in last couple months I think it is closer to 1/2 Gold and Silver and 1/2 between investments and cash depending.

    Nov 21, 2011 21:50 PM

    looks like the repubs will rotate candidates again, will huntsman and michelle bachman rise again?? nute of geogia, has a closetfull of financial and sex scandals in his past. will the repubs reach for a little know major, of some western city ,to fill out the vice pres nomination. ?? i did not have nerve today too buy gold. maybee later. S

    Nov 21, 2011 21:35 PM

    All the members of the panel were interesting, but I was glad to hear from ‘new’ face (to me) Keith Piggot.

    Nov 21, 2011 21:42 PM

    Al, it was great to listen to this interesting panel of experts express their views on this topic, I think all them have useful insights on the turbulence of the stock market. My personal view is that the financial markets will remain unsettled and uncertain for the next six months. I think there is a bias in the markets towards major producing gold companies. They seem to have dropped the least since the market started correcting in April of this year.

    It seems that analysts, institutions and the public have gravitated towards the the major gold mining companies. I think a lot of money come into the junior resource stocks last Fall and once there was a dip in the market everyone rushed into the majors. This have left the junior mining stocks unwanted and unloved.

    Ironically as the juniors have taken a big drop in the market they are being scooped up by the majors or private investment companies. As most of the juniors continue to trade sideways I can see a divide between the major/intermediate companies and the juniors. Over the next several months the majors will see greater stock appreciation and accumulation in the market. The juniors will mainly be the focus of private investment firms, the majors and a small crowd of retail investors.

    I think over the next six months most junior resource stocks will only have modest gains in their share prices. The current low share prices and market caps of most juniors make them easy targets for takeovers by larger companies. As the markets remain choppy most institutions and retail investors will shy away from the junior resource stocks and focus on the major/intermediate companies that will not fluctuate in value as the market bounces up and down.

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