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Frank Holmes discusses gold.

Big Al
April 12, 2012

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Discussion
51 Comments
    Apr 12, 2012 12:12 AM

    Hey Al.
    Traders seem to be aware now when the manipulators are on hand and more trades move markets in off times.I E.Lunch Early etc.Of course the bigs will still have to mainline durring forex hours.Just an observation.
    Good Day Al!
    Steve

      Apr 12, 2012 12:30 AM

      Thanks for the comment Steve.

      Big Al

    Apr 12, 2012 12:39 AM

    Great interview. Frank’s prediction is probably a very conservative estimate of where Gold will be in 5 years.

      Apr 12, 2012 12:31 AM

      Thanks Jed. I agree that Frank is possibly a bit conservative. By the same token, he has done pretty well over the years.

      Big Al

    Apr 12, 2012 12:51 AM

    Frank Holmes: gold is up 12% in the past year and less volatile than the S&P500. Clear thinking from a guy who would be great to have on this show much more!

    Doubling over the next 5 years is 14-15% per year for 5 years. It will take us a long time to get rich.

    Silver looks bullish to me but I’m not sure:
    http://1000gold.blogspot.co.uk/2012/04/silver-near-to-breakout-maybe-2012-04.html

    My thoughts are precisely:
    “I saw an article online a couple of years ago that had the phrase “Are we rich yet?” The answer is “No.” There is a long time to wait. I wondwer if I will live to see the top in gold or even the big upmove. It is so slow coming. This slow bull market will wear me out. I will not get rich – whoever inherits my metals will maybe get rich instead”

      Apr 12, 2012 12:00 AM

      Silverbug Dave,
      All I can say is, if you have the staying power and cash flow to hang in there – hang in there! The erosion of the dollar’s purchasing power will alone make you financially stable and a happy human being, – where else do you go – I ask: maybe a corp bond, muni bond or whatever…..crazy in this macro climate! (Full disclosure – I have one GE corp bond for (mom’s income) but it is very little – I also have a bigger Franklin utility fund paying a nice dividend – but that is about as far as I will go!)
      All the best,
      Marc

        Apr 12, 2012 12:22 AM

        Good Day Silverbug Dave!

        You share some of my own sentiments, exactly. I was lead to this sector from common sense standpoint, but unfortunately fell victim to a lot of marketing hype and “to the moon, Alice!” newsletters promoting mining stocks. Well, as luck would have it, I had a small number of winners and a tremendous number of losers and it all came down to piss poor timing and horrible predictions about where the stocks would go. Seems that history “ALWAYS” repeats itself, so “jumping in” and “backing up the truck” because it was “seasonally favorable for the miners”, was the constant bantering I heard. Funny thing though, the seasonality didn’t always work (maybe for the metals) and I would watch in horror as a promoted “definite takeover” fell from $7.53/share to $1.55 and other’s much lower..hhhmmmmmm. Of course the explanation was always “naked short sellers” or “the markets are unjustly discounting this stock”.

        Truth be told, it was A LOT MORE FUNDAMENTAL than that. A lot more. After losing well over 80% of what I invested into the sector through the mining stocks, I learned that one had to take responsibility for themselves and do one’s own research instead of relying on those damn newsletters. Oh sure, some are informative and educational, but when it comes to their reasoning for buying, I prefer to research the company MYSELF before I ever put a SINGLE DIME into it. Smartest thing I ever did.

        Marc is correct. One needs to have an income if they are going to enter the metals market, at least as far as the miners go. Reason being….you could be waiting a very long time to see anything big. Trade in and out of them over time – not daily – but over time. Stock dividends and Blue Chip corporate bonds are an idea, and there are other ways like writing covered calls or selling puts on stocks you want. But the speed at which this bull market has moved (at least in my opinion) has been VERY well orchestrated and controlled. I personally feel it was designed to be that way since the last scare “they” had back in 1980.

        Stay frosty my friend…stay frosty. You’ll persevere.

          Apr 12, 2012 12:36 AM

          Hi Mark A,

          You are very wise to do your own research.

          It is very important to realize that some of the writers out there have different motives than yours. Prudence is the key!

          Best,

          Big Al

        Apr 12, 2012 12:33 AM

        Great comment, Marc!

        Big Al

      Apr 12, 2012 12:33 AM

      Hi Silverbug Dave,

      Frank will be on the show every 3 or 4 weeks from now on.

      Regarding inheriting your metals, any chance of me being included in your will!

      Big Al

      Apr 12, 2012 12:31 PM

      Hello Silverbug Dave,
      Just want to throw one thing your way, and while no one can predict the future exactly, the rate or pace of change at this point in time, does not guarantee that pace will remain constant. So, just because it’s been slow, in your words, up till now, doesn’t mean that this thing couldn’t take off like a rocket at any point in the future. Just a thought. Don’t get discouraged. Hang in there. On the subject of getting rich….Do I want to be rich? Heck yes! I’d like to try it just once to see what it feels like, but my real goal is to preserve my wealth, and not lose it to the hustlers. if I can do that, I will be satisfied.
      Best

    Apr 12, 2012 12:53 AM

    Big Al,
    Irregardless of a number that gold will be at – at a certain time period, or in a certain amount of time – the fact is – gold is an APPRECIATING ASSET that clearly is:
    1. Beating negative real interest rates – duh, obviously
    2. Outstripping inflation
    3. Hedging against further erosion of the dollar’s purchasing power.
    4. Anchors, quite effectively, the volatility and global/macro threats to your portfolio
    5. Is the ‘real asset” defined as money (silver, too) that is unfazed by; unpenetrable against; and irreplacable by all the insane central bankers that are ripping off the “average” uninformed and hard-working person out there JUST trying to stay ahead and raise a family, etc. – just a damn shame!
    Now, for all “newbies”- and with all due respect – and with humility I say: GET A HEALTHY PORTION OF YOUR ASSETS IN GOLD AND SILVER! If not for you than your children, grandchildren and all the other ones you love and care about! This is not investment advice – but, AT LEAST, research it thoroughly and then make your own informed and thoughtful decisions…..this site…and blog…is provided by BIG AL so all comers can learn, grow, educate and stand on their own two feet!
    All the best,
    Marc

      Apr 12, 2012 12:26 AM

      Hey Marc!

      Did you see the report out yesterday by the IMF that says “Gold is now a RAPIDLY depleting SAFE HAVEN asset.” ?? UNBELIEVABLE…well, not really. Those idiots sold all their gold because they didn’t think it necessary since it is after all a “barbarous relic”. Now they are screaming that central banks should start considering purchases of gold bullion. Well no duh.

      Be good

        Apr 12, 2012 12:38 AM

        Hi Mark A,

        Please send me a link to that comment.

        Thanks,

        Big Al

        Apr 12, 2012 12:39 PM

        Just got back CPA – whew! Done!
        Yeah, I saw that BUT, even more maddening – as you know, Central bankers, since 2011, are NET BUYERS of GOLD!!!!!! I dont remember the exact tonnage, but it up their, like 672 or something like that! SO, they are killing fiat currencies, then going around the back and buying their hedges! Punks, brats and scam artists!
        Marc
        BTW, the first time the have become netters of gold in decades….ask Britain…if they should have sold ALL their GOLD…or close to it at the bottom of the market back in 2001 or whenever!!
        Duh, again 🙂
        Marc

          Apr 12, 2012 12:32 PM

          LOL!! Yeah I think that Britian’s gold problem is refered to as the “Browne Bottom” When Gordon Browne sold all their gold, it was THE bottom in gold. LOL!!!!!!

          Dolts!

      Apr 12, 2012 12:37 AM

      More great comments from you Marc! And, thanks for the kind words regarding this site.

      Big Al

      Apr 12, 2012 12:01 PM

      Marc,
      I am one of the “newbies” who has enjoyed this daily report and the information I am gaining from Big Al and all the rest of you wonderful people!! I finally “saw the light” of the PM “savings plan”, and have now been stacking Silver Eagles as fast as I can afford them over the past two years. I count myself very fortunate to have happened upon Big Al’s website! Thanks again to all of you for your opinions and for your wisdom/experience.
      God Bless Us All, He will help us through the mess of this economy!
      Jody D

        Apr 12, 2012 12:34 PM

        Jody D.
        A fabulous welcome, welcome and welcome! Big Al is not only true blue – he is quite the gentlemen….:)
        All the very best to you and yours – and a hearty CONGRATS!
        Marc

        Apr 12, 2012 12:36 PM

        Jody D,
        Well said. I was a newbie a little over 3 years ago, and like you, I ‘stumbled’, ‘happened upon’, ‘found’ this site. Actually, I believe it was Providential, as I’m sure you do too. It has become my #1 Go-to site on a daily basis, and you’re ABSOLUTELY RIGHT, that “HE will help us through the mess of this economy!”
        Blessings

    Tom
    Apr 12, 2012 12:52 AM

    Please forgive me I know this has been discussed before but I wasn’t in a position to buy at the time so I didnt pay particular attention. What would you guys consider to be the best way to purchase and own physical silver and gold? Thanks in advance, Tom

      Apr 12, 2012 12:15 AM

      Hi Tom,

      I cannot tell you what to do. I can only tell you what I do.

      Re: gold, I use goldmoney.com
      Re: silver, I am going to start using Pat and Linda Gorman who work out of Tempe, Az.

      Hope this helps,

      Big Al

        May 08, 2012 08:16 PM

        How much fun it is to read about Sterling NY, the town I visited as a child with my falmiy. My grandfather was Hugh B Dugan and my father was Hugh Carlyle Dugan and my brother is Sloane Dugan. So many falmiy names! Such fun we had hopping in Grandpa Dugan’s old car where we could peek through the floor boards and see the ground on our way to to Uncle Allen and Aunt Francis’s farm. Good stuff for a little “city girl” living in Nutley NJ.Thanks for such fond memories,Susan Dugan Burgermaster

      Apr 12, 2012 12:35 PM

      Howdy Tom!

      I’ll give you my two cents worth…not that it is really worth two cents because our Dollar has depreciated so much.

      It really depends on what you want. Are you the “not in your hand then you don’t own it” camp (like me); Are you “worried above government/bank confiscation” (and justly so); or Are you one who just wants the physical but doesn’t want to keep personally, yet doesn’t want overseas?

      If the s$@% hits the fan, then some 90% silver is the way to go in my opinion. VERY low premium over spot, still functionable as money in this country, you have exposure to the metal’s price, and its divisible enough that you can sell or use it when you want. Many companies now offer precious metals storage but watch their fees! Some just began this program of storage because there is money to be made for “holding it”. If you decide this route, then by all means – PAY A VISIT to the place you plan to have it stored to verify that they actually have the storage facility and see how protective it is.

      As far as gold goes, Nothing wrong with some coins in hand (or in the midnight garden). Stick with internationally recognized and HIGHLY minted coins, like Maple Leafs, American Eagles and Buffalos, South African Kruggarands, Austrian Philharmonics. By from a REPUTABLE dealer and avoid EBAY unless you can get a good deal from a reputable dealer there.

      Okay enough ranting. Everyone is different.

      But shame on you for not buying sooner…Bad Bad Bad…

        Apr 12, 2012 12:45 PM

        Good advice, Mark A

        Big Al

    Apr 12, 2012 12:14 AM

    Hey Big Al!

    Did I ever tell you how much you and your website are loved? If not…welll…I love you man.

      Apr 12, 2012 12:16 AM

      Jeeze, I am turning red!

      Thanks,

      Big Al

    Apr 12, 2012 12:16 AM

    Great comment from a listener:

    “Al,

    Thanks for answering my question on gold on your show.

    Hopefully this inverse head and shoulder will play out.

    Today’s jump in claims might add more fuel for the QE boys.

    At this point I need to remember my own advice.

    I’ve been telling anyone who asks regarding gold for 12 years now:

    “Don’t wait to buy gold, buy gold and wait”
    “Be right and sit tight”
    “Don’t let the bull throw you”
    and lastly “The big money is made in the big move”

    I think the key word here is patience, hopefully it will be rewarded

    What else can you do?

    Sincerely,

    James”

      Apr 12, 2012 12:42 PM

      James,(Big Al) excellent, excellent and EXCELLENT. BTW, my “hero” Besides you Big Al…Howard Katz – The one-handed economist – use to say….the last comment…THE BIG MONEY……..all the time!! Its true just wait!
      Marc

        Apr 12, 2012 12:34 PM

        he was TRULY great! I can still hear his words.

          Apr 12, 2012 12:25 PM

          YEP

          Aug 27, 2012 27:02 AM

          Girl, don’t let fame screw you up, okay? People like you because you are not like the fauoms arrogant guys, don’t change. It’s hard, but don’t change.You actually have a wonderful voice, I don’t really know how angels sing, but I’m sure you must be pretty close.God Bless you, if you believe him.

    Tom
    Apr 12, 2012 12:09 PM

    Thank you Mark and Al! Now if you have a measly little half a million $ portfolio how much should be physical metal? Last question I promise, thanks Tom

      Apr 12, 2012 12:37 PM

      Well, again, this isn’t financial advice, so I would consult a certified financial theif -err – I mean, adviser before investing into the precious metals. Shwew! Now that I have that disclaimer out of the way.

      First, a half million isn’t measly. You insult those of us who don’t have such funds. But no offense. Most commonly accepted allocation HAS BEEN (and that is past tense) a weighting of 5% to 7%. HOWEVER, and this is a REALLY BIG however, one might consider something a wee bit more. You have to look at your metals as an insurance policy and not an investment. You should also look at precious metals as what they really are…REAL MONEY. They are easily liquid ANYWHERE IN THE WORLD, and depending on where you live (outside the U.S.) your metals will preserve your purchasing power.

      Right now there is a common division that I see promoted (although I don’t completely agree with it) and that is 25% metals, 25% currency (not all U.S. dollars), 25% dividend stocks (Blue Chips) and 25% Bonds (corporate not government unless you utilize Treasury Bills and not Treasury Bonds). Now my personal opinion is a little bit more biased towards the metals because of my own beliefs in what I “think” could very well happen.

      You have to invest in the most comfortable allocation for yourself, Tom. I would talk it all over with your wife of course (if you are married)

      My personal strategy and the way I am investing:
      1) 40% Precious metals (15% gold 25% silver)
      2) 45% Cash (I trade with about 1% – 2% and keep the rest as “dry powder”)
      3) 15% Energy and Precious Metal junior producers/explorers – oil, precious metals, uranium, LNG technology.

      Good Luck with your choice but whatever you do….BUY SOME METAL AND DO IT LIKE LAST WEEK.

      Stay frosty

      Apr 12, 2012 12:55 PM

      Tom – If I may chime in here –
      Let me just say – A Great question! That is THE question I asked the panel (with Big Al) at the CRIC in Palm Springs…The panel including some real pros saying ” Whatever the percentage – make sure you can sleep at nite – so with that said…in NORMAl times – say 5 to 10%. BUT, these are not NORMAL times…so you might be looking at doubling that or if you don’t need the income off the savings raising it to 30 or 40%. This is not investment advice, I am not a reg. advisor, I am just trying to help – like everybody else here. But I will say, that we are in serious trouble and this is the only solution that keeps the central bankers from stealing our wealth! BTW, another option (In addition to what Big Al said above) is to find a very,very reputable coin dealer in your area – you can trust.
      This is how i did it.
      1. First, junk silver bags – pre-1964 coins of actual US mint dimes, quarters and halves.(90% silver content)
      2.100 and 10 oz bars for storage (.99 fine silver)

      3. Sil

        Apr 12, 2012 12:02 PM

        OOPS…hit the wrong button!
        3. Silver rounds of 1 oz each at (.99 fine silver) good for bartering/exchange, etc. Basically, I mixed and diversified the silver as I went along.
        4. Gold bullion – generic one ouncers
        5. Gold maple leafs, krugerands and 50 peso gold coins out of Mexico.
        I am also diversified in some standard investments and some other commodities that are based on supply/demand fundamentals for a rapidly growing population in the east.
        (BRICS)
        Good luck and all the best!
        Marc

        Apr 13, 2012 13:47 AM

        Hey Marc

        Did you happen to check those 100 oz bars for tungsten or lead? They may even have fairy dust inside of them, so you really don’t know if you have 100 oz of silver.

          Apr 13, 2012 13:56 AM

          Morning Mark A,

          You rightfully stress the importance of quality control and truly knowing your product.

          Big Al

          Apr 13, 2012 13:04 AM

          True,
          How do I know?….I don’t…I just really trust my dealer!!

        May 08, 2012 08:07 PM

        Your question is more aprpopriate for the “What Does the Bible Say About It?” section and has been answered there in the post titled “Will the World End December 21, 2012?”

      Apr 12, 2012 12:41 PM

      Hey Tom,
      Not bad!! I wish I had your “measly little half a million” That’s a nice nestegg. You’ve done well!!

        Apr 12, 2012 12:21 PM

        Here, Here Mr.C…
        Yes, he sure has..I wish I had done that bad!!:)
        Congrats TOM and
        All the best,
        Marc

      Apr 13, 2012 13:00 AM

      Morning Tom,

      NOT INVESTMENT ADVICE, JUST AN OPINION.

      My portfolio is as follows: 25% real estate; 25% conventional market stocks; and 50% precious metals with between 5% and 10% bullion.

      I sleep pretty well at night!

      Big Al

    Apr 12, 2012 12:32 PM

    Hiya Al,

    I’m a Canadian and looking to buy gold through an ETF (Claymore) that is backed by physical gold. There is a hedged and un-hedged version. My question is which is better. If the US dollar is really going down the dumpster, do I choose the ETF that is hedged to Canadian dollars?

    Apr 13, 2012 13:54 AM

    Morning pastexpirydotcom,

    Quite a handle!

    Look for a Daily Editorial on this later on Friday.

    Best,

    Big Al

    Tom
    Apr 13, 2012 13:22 AM

    Thank you all for your advice as to how to purchase gold and silver I’ll definitely be talking it over with my wife and making a decision very shortly as to how to proceed. I apologize for making the sum money sound paltry I’m just thinking in terms of trying to retire you almost to be a multi millionaire these days. Tom

    Apr 15, 2012 15:06 PM

    Hi Tom,
    For what it’s worth. I buy my physical from any source that is close to home, cheap, and doesn’t leave a paper trail.
    First, get a coin book, as new as possible. Learn about coinage and it’s history. Know what amount of silver is in the old coins.
    You can go to http://www.coinmelt.com and find out what the actual silver content of just about any coin is figured at the spot price for that day. A good tool for figuring out how much you want to pay at auction, to a dealer(will have a % markup over spot for rounds and bullion), or coin collection. Take your time, make a friend with a coin guru if you can. If you go to an auction, watch who bids on the coins and after the sale try to strike up a conversation. See if they are honest. They may have other contacts, know people who want to sell, or just have some good basic information. But beware(caveat emptor), they are always looking for a bargain too, so just play it very carefully.
    I try to buy at local auctions first. Go to http://www.auctionzip.com, plug in your zip code and look for all auctions listed in your local area. You can select the search to look for coins only which will speed up your search.
    I also use local coin dealers and coin shops.
    Also, check your local paper in the classifieds for people trying to sell collections, and auctions. You can try local hawk/pawn shops as well, although in my area, Maryand, most of 40/90% silver is bought up.
    I have also bought quite a lot of bullion coins and rounds from online dealers. There are many. I have used Bulliondirect and Gainesville coins with good success. There may be better ones. You’ll just have to research and decide who you want to use.
    Just some ideas for starters. Not investment advice. Just what I’ve done.
    Best to you.