Events of this past week

December 17, 2011

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In this show Al discusses:

  • Segment 1 – James Turk discusses gold.
  • Segment 2 and Segment 3 – Al and Alan Butler, of Butler on Business, discuss investing, domestic politics and, of course, the European disaster.
  • Segment 4 – Al and Peter Grandich talk gold and the doomsayers.
  • Segment 5 – Al and Marshall Berol discuss two of their favorite mining companies.
  • Segment 6 – Al and Larry Reaugh discuss the markets.
  • Segment 7 – Al closes the successful story on Silver Quest with Randy Turner.
  • Segment 8 – Big Al and Trader Rog discuss the events of this past week.

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

    Dec 17, 2011 17:45 AM

    When you say Michelle LaGarde, are you referring to Christine LaGarde of the IMF?

      Dec 17, 2011 17:31 AM

      Morning Bill T,

      My mistake, of course I am.

      Thanks for the correction!

      Big Al

        Dec 17, 2011 17:31 AM
          Dec 17, 2011 17:01 AM

          Okay, okay and okay!

          Big Mistaken Al is a buffoon!

          The heck with all of you, I am going out and play nine holes. (Unfortunately, and then look like even more of a buffoon!)

          Oh well, God made me what I am,

          Big Al

            Dec 17, 2011 17:17 AM

            Amen and Amen…..(“god made me…”)

            Dec 17, 2011 17:57 AM

            In my book you could never be a buffoon, Big Al.

            I bet you tear up the greens today and maybe even get a hole in one!

            And I bet you skip robe better than Michelle LaGarde (and Christine LaGarde, too). 🙂

    Dec 17, 2011 17:05 AM

    Al, problem Spain unemployment,,,solution…Al buys more spanish wines…

      Dec 17, 2011 17:32 AM

      Morning Jerry,

      Actually, I am not particularly found of most Spanish wines that I have tried.

      How about you?

      Big Al

        Dec 17, 2011 17:09 AM

        the soil must be poor…I have never favored any spanish wines….
        but, there must be some out there that are not public, maybe
        some local wines…..we need to have david cf2000 check it
        out the next time he goes over ,,,

          Dec 17, 2011 17:02 AM

          HI Jerry,

          It has always seems too sweet for me. (Kind of like sangria.)

          Big Al

            Dec 17, 2011 17:18 AM

            Yes, but, sangria is great on the beach….

            Dec 17, 2011 17:37 AM

            HI Jerry,

            How about a great gin and tonic?

            Big Al

            Dec 17, 2011 17:12 PM

            there are some great small batch gins out there….that was a favorite when I was in
            Charleston, SC.

            Dec 20, 2011 20:40 AM

            Sangria is available at 1 euro a litre!

          Dec 20, 2011 20:38 AM

          Nothing wrong with some of the rioja region reds.
          I’m in Spain at the moment.

            Dec 20, 2011 20:06 PM

            cfs2000… hope you are fine….I am glad you saw my not…on the wine..
            I thought there might be some nice reds….every country has something
            to drink…

    Dec 17, 2011 17:28 AM

    Buffit..knows about politics and benefits, his dad was in congress….

      Dec 17, 2011 17:30 AM

      by the way, thanks for having Butler on ….great input

        Dec 17, 2011 17:33 AM

        Morning again Jerry,

        Alan Butler is a good guy and a pleasure to have on the show.

        Do you live in Atlanta?

        Big Al

          Dec 17, 2011 17:48 AM

          I hope not for Jerry. It´s an ugly place to live. My humble experience.

          Dec 17, 2011 17:03 AM

          Al,, I am living in Florida for the winter…, would never consider living in Atlanta…
          to many people….the idea of survival in the future is stay out of big cities…

            Dec 17, 2011 17:03 AM

            HI Jerry,

            That is exactly why we moved up here to Semiahmoo. The closest traffic light is miles away. Unfortunately, so is the closest grocery store!

            Kathy and I are not crazy about living in big cities anymore.


            Big Al

            Dec 17, 2011 17:14 PM

            Do you live in Arnold Palmer golf resort….that means you can get to Canada quick
            when all heck breaks loose….got a boat…?

            Dec 17, 2011 17:16 PM

            by the way , how is the weather this time of year? temp ?

      Dec 17, 2011 17:23 AM

      If Buffett is buying the stock of a distressed company you can bet YOU, the taxpayer, will be paying for a bailout.

      Buffett is nothing but a criminal crony capitalist but since he helps write the rules what he does is perfectly legal. And YOU and YOUR KIDS will pay.

        Dec 17, 2011 17:04 AM

        Kind of interesting Ken what is going on with B of A which was his recent big investment!

        Big Al

        Dec 17, 2011 17:26 PM

        HI Jerry,

        No boat and yes to the golf course. He did design it.

        Guess why we moved up year? Hint, it was not the golf.

        Weather is varied. Last week is was in the high 20’s and I just walked the back nine and it is about 45. Go figure.


        Big Al

          Dec 18, 2011 18:38 PM

          My guess is so you could drink Canada Dry when you are having a bad week…I was never successful in that quest but Crown Royal hard to beat………..

            Dec 19, 2011 19:20 AM

            Morning Dai Uy,

            Pretty tough to drink Canada dry. (Interesting play on words!)

            Crown is pretty good, but Big Al sticks to good wine in sensible quantities. (Any idea what that means?)


            Big Al

      Dec 17, 2011 17:18 PM

      Hey Jerry,

      Give me some examples of small batch gins.


      Big Al

        Dec 17, 2011 17:19 PM

        Al, these are the what I consider small batch gins…
        Not your tangueray or bombay…although I like these
        Leopaold Bros.Amer.gin
        Hendrichs gin..scotland
        Magellan original, “IRIS, Natural blue…different.may not be small batch but hard to get.
        Martin Miller .london
        Citedelle gin…france.
        Oxley Classic ..english

    Dec 17, 2011 17:54 AM

    The Us dollar is strong because people are willfully ignorant of the fact that at most the US has $ 458 billion of gold against $ 15.6 trillion of current debt.

    the US dollar is the best looking horse in the glue factory.

    If the EU plummets, falls, crashes,, break up occurs, the US dollar will jump in demand because anyone holding Euro will dump it for anything.

    Asian demand for gems and rocks is still very good.

    This demand will ONLY go UP when the Euro plummets, if it plummets.

    The reader bashing gold was most likely a paid shill for the evil American banksters or maybe for the evil American govt.

    I believe that Fort Knox is empty of PMs. In fact the only PMs there are those used in their high tech electronics to guard those empty vaults. Maybe they are not empty but the I think that the gold there, much of it is actually owned by other govts.


      Dec 17, 2011 17:35 AM

      Morning James B,

      Hard to disagree.

      I, personally, have to agree with James T.


      Big Al

    Dec 17, 2011 17:58 AM

    Hi Big Al,
    High quality discussions this week-end.
    … I must say that Mr. Butler didn´t answer our request (how a sudden US dollar devaluation could be possible in a world where the majority of the world´s currencies are floating?). To bring the 1990 financial collapse of the Soviet Union as a parallel case doesn´t fit in the expected explication because the Soviet government at those times kept the ruble at a fixed exchange rate.
    I´m a little bit disappointed about Mr. Butler´s explanation.
    Dear Al, you should give your guests more time for preparing the answers to our questions.
    Mr. Grandich is really one of the TOP market analysts. Paraphrasing Voltaire, one of the greatest philosophe in history of mankind: “Common sense is not so common” in our days!
    I´m sure of one thing: physical precious metals are too valuable. Don´t trade them but accumulate them because the PMs Bull Market is still on the march.

      Dec 17, 2011 17:57 AM

      …..How about..”.George Berkeley”-.IRISH philosopher…1690’s
      for he did say….”nothing turns out to be so oppressive as a feeble government”

        Dec 17, 2011 17:24 AM

        Hello Jerry!
        This very fine quote is so true.
        My view about our Western World: after a period of time all democracies sadly give small oppressive groups free rein to oppress the majority in the name of wellbeing.

          Dec 17, 2011 17:39 AM

          HI Anna,

          All I can say is “YEP”!

          Big Al

        Dec 17, 2011 17:39 AM

        Morning Jerry,

        How about, “nothing turns out to be so oppressive as a scared government that does not want to loose its power”?

        Big Al

          Dec 17, 2011 17:21 AM

          watch out Al….they will start calling” SOCRATES AL..”, and you know what they did to him.

            Dec 17, 2011 17:21 AM

            Hemlock,,my dear friend….

            Dec 17, 2011 17:38 AM

            Oh Geeze,

            Forget my comment. Now, I have to try and get it off this forum!

            Big Al

      Dec 17, 2011 17:37 AM

      Morning Anna,

      Number one, I agree with you re: precious metals.

      Number two I appreciate you input re: the guests. My challenge is I have time constraints on the Weekend Show because of the set times for the segments.

      I will again discuss this issue with Alan Butler keeping your comment in mind.


      Big Al

      Dec 17, 2011 17:22 PM

      Currencies don’t float, they sink at varying rates. Gold rising in all currencies is proof of this. FDR devalued the dollar by more than 70% by decree. That was very sudden. Central bankers today have, so far, opted for a market led devaluation. This does not mean that they won’t, at some point, and under terrible circumstances, become much more active. As John W. Robertson pointed out, it could be the announcement of a huge QE 3. “Shock and Awe” does work on the markets. The bursting of the U.S. T-bond bubble would send the biggest funds in the world panicking into gold. The resulting rise in gold would equal a sudden devaluation of the dollar. To a great degree, all other currencies are likely to fall a similar amount since they are ultimately dollar derivatives. When you combine fear and greed with an ever expanding understanding among market participants, big moves in gold are sure to become quite sudden as this bull market matures.
      Over the last decade, the decline in the value of the dollar (and therefore all currencies) has accelerated dramatically. It will accelerate further as imbalances grow and resolutions becomes more urgent.
      It’s worth noting that, at least hypothetically, the dollar could go to zero value without the USDX breaking down.

        Dec 18, 2011 18:15 AM

        Thank you Matthew for your answer. It all makes sense to me now.
        An atrocious outlook for savers/retirees trying to protect their wealth… We are forced to take the elevator to the bottomless pit. Rebellion is programmed in the future.
        Have a good starting week tomorrow!

          Dec 19, 2011 19:39 AM

          Good Morning Anna and Matthew,

          Retirement can be okay if you have “things”. That is exactly why some of our retirement is in real estate.

          We are definitely in unsettling times. Folks like us have to look at what really makes sense and take the possibility of a paper economic collapse as a possibility.


          Big Al

            Dec 21, 2011 21:08 PM

            A problem with real estate is property tax increases can kill a person on fixed income.

    Dec 17, 2011 17:07 AM

    Larry R…..I LIKE HIS CALL…..$100 SILVER….(note this will seem cheap when
    gold goes to sinclair’s number for gold at $4500)

      Dec 17, 2011 17:41 AM

      You know Jerry,

      As I said, I have known Larry for a long time. He is a very interesting man who has been successful, for the most part, over the years.

      Hard to disagree with what he said. But, we all have to remember to consider all opinions and then make up our minds.

      I am going in the direction of buying silver on Monday. Will let you know.

      Big Al

        Dec 17, 2011 17:20 AM

        I purchased silver and platium ….I like to “average in ”
        if it dips down again…I will buy again…
        Long term I am looking for silver over $128(min)…reason, that is a 35to1 ratio
        to gold…if gold goes to$4500 , I know some think that the ratio is of no
        importance..but, I think time will prove them wrong…
        plus, silver at $100 will look very cheap….even if gold only goes to $2500

          Dec 17, 2011 17:06 AM

          Hi Jerry,

          That is kind of my reasoning re: silver. Our last major purchase was at $14 so if I buy Monday, my average cost could be around $22.

          Big Al

          Feb 03, 2014 03:09 PM

          It’s really great that people are sharing this inoonmatifr.

    Dec 17, 2011 17:48 AM

    q for Anna:
    Anna I’ve loved your pass posts!-THX.
    If you would kindly opine on the issue of sick as fiat currency is, we still need it for basic ‘stuff”. where is the best place to store 6 months of cash???
    Thank you again and happy/healthy holidays-ED

      Dec 17, 2011 17:55 AM

      In which country are you living Edward?

        Dec 17, 2011 17:06 PM

        thx anna-I reside in NEW YORK<NEW YORK (so good you have to say it twice)-yeah right!! The US of A!

          Dec 17, 2011 17:08 PM

          also Anna-I just finished watching “inside job” for the second time-I cannot tell you how angry it makes me. have you seen it??

          Dec 17, 2011 17:18 PM

          Edward….you are in the thick of it….keep us informed….

          Dec 17, 2011 17:41 PM

          Edward, I lived 8 months in Oradell (NJ) in 1997 and then moved to California. I was always a little bit scared when I was walking through Porth Authority Terminal.
          Put your cash in plastic bags and stuff them into several well fermented camemberts and close the fridge. I think it is the best save place in the USA. Not in France of course! That´s the reason why I ask you about your location. 😉
          Have a good week-end!

            Dec 17, 2011 17:54 PM

            Excuse me, I wrote 1997, it was in 1987.

            Dec 17, 2011 17:54 PM

            anna- You as well! while I do love camambert, alas the fed hasnt seen there way to print anything larger than $100 bills. THAT, would require a boat load of cheese!!
            I was thinking about a small mom and pop bank that still uses typrwtiters-[(beleive me there’s still one in china town) w/no derivative exposure. Again this onluy cash for buying “stuff” to live on. cant think of anything better, and do not want to have w/my bullion-thx and stay well

    Dec 17, 2011 17:22 AM

    Big Al,
    I am having a garage sale here in Beautiful So CAL – what did I talk about to some stranger – you guys got it -INFLATION IS COMING AND COMING FAST!! ( Except in my garage sale 🙂 Hold on, the destroyers of democracy is inflation and unemployment – yikes!
    Thanks for all your hard work!!

      Dec 17, 2011 17:30 AM

      You live in Cawleefornia (as Ahhnode sez)?

      Well, it sounds like you are going to be voting on several tax increases next November.

      And if the DemoNcrats get two-thirds majority in the legislature they can pass any tax increase they want.

        Dec 17, 2011 17:05 AM

        They better stay away from property taxes – i.e. prop 13 circa 1978

        Dec 17, 2011 17:08 AM

        Guess why the little blond lady and I have decided not to spend a lot of time in Palm Desert?

        Big Al

      Dec 17, 2011 17:07 AM

      Go Aztecs!

      Big Al

      Dec 17, 2011 17:26 AM

      hey, Marc…..did they ever get that “exit tax” passed….they were trying to get
      you guys to pay a 50% exit tax if you left the state…because there were so many people leaving….

        Dec 17, 2011 17:50 AM

        No, I dont believe so…but Prop 13 is under constant, constant attack – A lot of retired folks rely on that tax relief and it was a hard fought victory against political money grubbers looking to tax the hell out of us so they can waste it on expensive nik naks and personal fiascos.

          Dec 17, 2011 17:52 AM

          BTW Jerry –
          That was funny :)!!!

    Dec 17, 2011 17:17 AM

    Big Al,
    Peter Grandish is SOOOOOOOOOOO right, What the hell is that “guy” doin at Kitco….I absolutely dont understand his job there! It is a shame he even is allowed to participate in hard asset discussions. Is that “guy” at kitco a token naysayer so that company can have a hint at balance of opinions!? C”MON!!!!
    P.S. I refuse to give specific names because I respect everybody’s opinion – even if is akin to swallowing horse excrements!!

      Dec 17, 2011 17:10 PM

      You hit the nail on the head. I am convinced that Jon is there so that Kitco does not give the impression of being biased.

      I have not spoken with Jon for over a year and you have to admit that he does give, I guess what you would call, balance.

      Remember, none of us have to agree!

      Big Al

      Dec 17, 2011 17:11 PM

      You are SOOOOO right as well. Mr. Nadler, the legendendary expert in his own mind has been a joke for the seven years I’ve tuned in to kitco for various things

    Dec 17, 2011 17:20 AM

    Big Al,
    Take a gander at Ronnie Hillman tonite our SDSU running back – we are all calling him the second coming our beloved Marshall Berol – JUST KIDDING:) Marshall Faulk!!

      Dec 17, 2011 17:28 AM

      was that the Faulk who played for the INDY COLTS?

        Dec 17, 2011 17:46 AM

        Hey Jerry
        Yeah, and the Rams of super bowl 1999 and now on NFL network.
        Happy Holidays!!

      Dec 17, 2011 17:11 PM

      Yep, I will for sure. Looking forward to watching the game!

      Big Al

        Dec 17, 2011 17:18 PM

        Big Al,
        Seriously, you are the absolute best and such a straight shooter – thank the Lord!!
        Merry CHRISTmass!

          Dec 17, 2011 17:30 PM

          Many thanks Marc,

          Double go Aztecs!

          Big Al

            Dec 19, 2011 19:43 AM

            HI Marc,

            Comment on Ronnie Hillman, “one heck of a quarterback who the Cajuns contained pretty well.

            When you have an opponent like that you have to contain him if you hope to do well.

            Again, really a great game!

            Big Al

    Dec 17, 2011 17:23 AM

    Ooops, sorry Peter Grandich not dish

    Dec 17, 2011 17:26 AM

    Hi Big Al,
    Another great weekend special.
    My question is Is the Euro dollar just a US dollar in a Europe bank not drawing any interest??? Could anyone please help with an answer?

      Dec 17, 2011 17:14 PM

      Morning Keep Stacking,

      No, you really have two different currencies. But, we have to remember that today all currencies are very, very inter-related.


      Big Al

    Dec 17, 2011 17:43 AM

    Hi Al,

    Love the show. Just wondering your opinion on what will happen to the share price of RPM after the court case is figured out?

    Cheers James

      Dec 17, 2011 17:13 PM

      Hi James,

      I will definitely keep you posted on this situation.

      My personal feeling is that if the decision goes against Rye Patch you will see a drop in share price.

      That certainly does not mean that it is not a good company. I truly believe that it is. (Not investment advice!)

      Big Al

      Dec 17, 2011 17:14 PM

      This show is the absolute BEST on the web…!!!!
      All the best

        Dec 17, 2011 17:15 PM

        Hi Marc,

        You are very generous in your comments. We all thank you so much and promise to keep trying as hard as possible.


        Big Al

    Dec 17, 2011 17:07 PM

    Hello Al,
    It is easy for me to see why gold stocks are down. In the past four years I have subscribed to a number of news letters on investments in gold stocks. If I sold out today I would not even break even. On the other hand 75% of my investments have been in gold bullion over the same time period and I have made probably 100% on bullion. Right now I would be delighted to sell and get back all of my money from gold stocks. At this point I don’t care if a number of my stocks turn out to be 10 or even a 100 bager. I would rather have 100% in gold, silver and platinum bullion and quit spending many hours every week reading gold articles and listening to programs. By the way I greatly appreciate the effort you and Roger make to provide a really great public service. Thanks, Dale

      Dec 17, 2011 17:32 PM

      Hi Dale,

      Many thanks for the kind words.

      Makes my weekend!

      Big Al

      Dec 17, 2011 17:03 PM

      I came across this article on Market Oracle, which is worth taking a look at. I’ll pull a section that accompanies a pyramid graph that should be looked at (with physical bullion a the foundation, and the junior mining shares at the apex.)

      Here is the pasted section:

      Mining stocks and bullion are entirely different asset classes. During a rising trend mining stocks are often correlated to the metals; however, in a downturn such as we experienced in 2008 they can become more correlated to the broad equity markets. Because bullion is a safe haven during financial crises, it tends to outperform mining stocks during turbulent times – often quite dramatically.

      Of course, there are several categories of mining stocks, and each of these categories has a different risk/reward relationship and volatility profile. From a risk perspective, exploration juniors are at the top of the pyramid; further down are companies that have discovered reserves but are in feasibility analysis or in permitting; further down still are the producers.

      But since most mining companies do not pay dividends and have a depleting asset base, they are more suitable for short-term speculation than long-term wealth preservation or portfolio insurance. Again, without a physical bullion component, portfolios are neither balanced nor diversified.

      And here is the article link:

      p.s. – reading the article has made me want to consider selling my shares (at a 30+% loss.)

        Dec 19, 2011 19:55 AM

        HI Dale,

        I am not personally selling my shares at this point. I may to some tax loss selling before the end of the year. If so, I will let you all know.

        That is a good article, by the way. Thanks for bringing it to our attention.


        Big Al

      Dec 18, 2011 18:32 AM

      Hi Dale,
      My thoughts exactly. I did sell some for tax loss purposes but am holding most. I have also taken profits along the way. I do believe at some point I will be very happy with thier performance. After all, with more people buying physical there is bound to be a shortage which is when the mining stocks will really perform

    Dec 17, 2011 17:03 PM

    Gold = Ron Paul. He was on Leno and other shows. I’m voting for him, there’s no other in my mind.

      Dec 19, 2011 19:55 AM

      Thanks for the link, Mr. Martin!

      Big Al Korelin

    Dec 18, 2011 18:24 AM

    Good morning everyone,
    There is a must listen to interview with Jim Rickards on King World News Part I & II. You will completely understand the game. This is exactly why I will get out of currency anything including IRA , 401 etc and keep stacking.

    Dec 18, 2011 18:36 AM

    H is part 1 of the Jim Rickards interview:

      Dec 18, 2011 18:43 AM

      Karen…..great listen to….thanks ……I posted the other day Egon von Greyer another great listen to ,,,if anyone goes to the web site ,check it out….

    Dec 18, 2011 18:45 AM

    good morning Al,
    Great weekend show as usual. Peter Grandich is right on!!

      Dec 19, 2011 19:56 AM

      Thanks Karen,

      Yep it was a good one and fun to put together.

      Big Al

    Dec 18, 2011 18:39 AM

    “The market can stay irrational longer than you can stay solvent.” John Maynard Keynes.

    Putting the above quote another way, “The Fed, other central banks and their governments can remain irrational longer than their citizens can remain solvent”, seems to me to be a more accurate account of what is happening. In fact I think those at the Fed and in economic control are counting on this fact to punish people from saving, hence negative interest rates, manipulation of currencies and their exchange rates and the control of money through derivatives (Shorting of failure in order to profit off insidious actions taken by governments).

    The so fiat prices of real money like gold and silver in these markets where total amount of “contract silver” traded in one day at the COMEX can normally be more than the total Worlds annual mine production.

    “”When I talked to the head of deliveries at COMEX NYMEX, I was like, ‘What if 4% of the people want deliveries?’ He said, ‘Oh Kyle, that never happens. We rarely ever get a 1% delivery.’ And I asked, ‘Well what if it does happen?’ And he said, ‘Price will solve everything’ And I said, ‘Thanks, give me the gold.'” Kyle Bass

    So the question is, To what degree will these Central Banks and their governments go to push their citizens into poverty, while transferring all wealth to the less than 1%, and to what degree will these citizens allow it?

      Dec 18, 2011 18:07 AM

      CLAY a bigger percentage than you think…..
      People still do not get it….
      but.,,,,Kyle B….may alert some more big money….sooner or later all heck will
      break loose…..but, when, who knows….but, you can bet that there will be plenty
      of shake outs along the way….Gartman is a good example of a shake out, and one
      who does not have a clue…

      Dec 19, 2011 19:58 AM

      You know, you talk about people being pushed into poverty, listen to today’s second Daily Editorial.

      Big Al

    Dec 18, 2011 18:53 AM

    Good Morning all you great people,

    Please note my comment found on the Weekend Special section.

    All the best,

    Big Al

      Dec 18, 2011 18:00 AM

      Al: Happy to know you are not depressed. Perhaps it is my ears that are depressed. More likely however, it is my brain between my ears that is depressed.

      I know to a fact that the great majority of people throughout the world are good people, but why is it so many leaders and those in power are not good people? Is that just my perception? I don’t think so because there have been and still are some really great people who have suggested the same. I have been and lived in over 40 Countries around the World in my life and in nearly all these places I have come to know that poor people can be trusted more than wealthy, and it is not poor people who work for or control governments it is the wealthy. In some places, most specifically the US, if a poor person happens to go to Congress they always come out wealthy. Power corrupts and absolute power corrupts absolutely. A single poor person has very little power, but a wealthy person does. A wealthy person can do wonderful things, like George Washington, Adams, Jefferson and more, but a wealthy person can also do terrible things like Nancy Pelosi, Warren Buffet, George Soros and so many more. There are so few of the former and way to many of the later.

      Vote for and give support to Ron Paul, he is a good choice to save America all the rest won’t.

        Dec 19, 2011 19:00 AM

        Hi Clay,

        Those are pretty interesting comments regarding rich and poor.

        I would say that, my experience has shown that there is truth in what you say in many cases.

        Ron Paul? Of course!

        Big Al

    Dec 18, 2011 18:53 AM

    Suggest you ask paul vanEeden what he thinks the price of gold should be. He applies a value based on the actual change in the money supply. I believe, he would suggest that the price of gold should be about $1,000 (latest published calculation is a little old).
    Anything in excess of that price is based on fear or manipulation.

      Dec 18, 2011 18:01 AM


      Dec 18, 2011 18:28 PM

      reg cole…..does anyone really know what the money supplies is, or actually the change? Do you really believe the govt. stats?
      Better go listen to John Williams…..if you do not know who he is , you may do yourself
      a favor and check into it.(not trying to be smart)….respectfully….Jerry ootb

      Dec 18, 2011 18:18 PM

      I´ve had a look on Paul van Eeden´s website.
      In my opinion, he made a mistake by calculating his Theoretical Gold Value.
      He omitted to interact properly his own datas of money supply AMS(historical chart) with those of the gold value.
      Based on his own numbers I come to the result that today´s Theoretical Gold Value should be $1,710.43 instead of $850.82 . The correction seems to reflect more the actual gold price but some analysts affirm gold should be by approx. $2,500 inflation adjusted.

        Dec 18, 2011 18:37 PM

        Anna, great work…., I thought Paul van was a little low….thanks for the follow up

    Dec 18, 2011 18:28 AM

    Quick comment to Marc,

    Really a great game last night!

    Too bad about the outcome for the Aztecs, but really well played!

    Big Al

    Dec 18, 2011 18:35 PM

    I forgot to ask a question to everyone here, as I’m not a seasoned investor, particularly in the mining sector, and could use some advice. Being in the US, I’m currently invested in OTC shares of several of the company sponsors of Al’s website here. I’m only just beginning to feel concerned that investing in shares in the pink sheets is a dangerous game. I own six companies on the pink sheets. I’m suddenly very upset that I’ve done this. Can anyone here offer me any help or advice on what I should do? I’d appreciate it so much. (I know I have only contributed to the blog here just a few times, but, Al and Roger, thank you so much for it. It is on of the top three websites I visit daily.)

    All the best,


      Dec 18, 2011 18:23 PM

      I agree with Karen. The worst thing about pink sheets listings is liquidity (low trading volumes) and price. Market makers usually get a fraction of a cent per share on each trade.
      As long as you always use limit orders and patience, you should be fine. Of course, it will be much easier to exit when sector-wide enthusiasm returns. Liquidity will rise while bid/ask spreads will fall; making a fair price easier to attain.
      Beyond all this, you’re risks should be about the same as those of us who buy on the TSX venture exchange.

        Dec 19, 2011 19:04 AM

        HI Matthew,

        Good point,

        Big Al

      Dec 18, 2011 18:34 PM

      I forgot to mention that I’ve used the pink sheets in the past, and my son still does. SIPC insurance applies (up to $500,000). Those affected by MF Global in the futures market were not covered by SIPC.

        Dec 18, 2011 18:42 PM

        Thanks, Matthew. Much appreciated…

        Dec 19, 2011 19:04 AM

        HI Matthew,

        So true regarding the SIPC insurance.

        Big Al

      Dec 19, 2011 19:03 AM

      HI Brian,

      If you want to trade Canadian mining stocks, I would suggest you call a Canadian stockbroker or a U.S. broker who is well versed in this arena.

      I will put up a list of brokers who I know that can help.


      Big Al

    Dec 18, 2011 18:01 PM

    Hi Brian,
    You could open a global account at etrade. OTC or pink sheet stock have lower listing standards which is why there might be a concerned with a pink stock. However if you are buying quality stocks it should not be a problem.

    Dec 18, 2011 18:30 PM

    Karen and Matthew,
    Thank you both so much. Your advice has eased my worries. I’ll stay patient, and hold on to them. I’m looking forward to when sector-wide enthusiasm returns. Hopefully before too long!

    Dec 19, 2011 19:58 AM

    Hi Al,
    I found this interesting:
    Peter Schiff on NDAA bill:
    Wouldn’t Peter make a great running mate for
    Ron Paul?


      Dec 19, 2011 19:06 PM

      Bobby…….never thought of Peter,,but,you have a great point…

    Dec 19, 2011 19:15 AM

    What do you think about what Krugman had to say about Peter in his Sunday editorial?

    Big Al

    Feb 02, 2014 02:32 PM

    Thanks lots for sharing this with all of us you esainteslly know what you might be talking about! Bookmarked. Kindly also stop by my web page =). We could have a link exchange contract among us!

    Feb 03, 2014 03:39 PM

    I went to tons of links before this, what was I thiinnkg?