Al's Insights – Fri 13 Apr, 2012

Here is a question from listener, pastexpirdotcom.

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Featuring:
Al KorelinRick Ackerman

Comments:
  1. On April 13, 2012 at 8:22 am,
    alexander brutell says:

    Big Al
    Love your program
    I was just listening to a video from David Morgan and he said it looks like silver will only go to $50.00 this year – earlier he said $60.00 plus was his target. I am thinking of buying some silver eagles at these lower prices. I know you are a Silver Bug. What do you think silver will hit this year? Thanks keep up the good work!!

    • On April 13, 2012 at 8:58 am,
      Big Al says:

      Morning Mr. Brutell,

      It doesn’t really matter to me where silver goes this year. I started buying silver in size at $14/oz. Obviously my average cost is less than the current price.

      I buy silver not to make a profit, but to sleep better at night.

      I look for profits from my stock transactions.

      Again, I really believe that the James Turk concept of buying a bit of silver or gold each month, etc. is the best way to invest in this sector if you choose to be in this sector at all.

      Best to you,

      Big Al

    • On April 13, 2012 at 9:06 am,
      Mark Alan says:

      Hey Alexander

      I couldn’t help but comment on your inquiry. First of all, no disrespect to David Morgan but I am starting to see some things I don’t like. First of all, he was on the Financial Sense Newshour with Eric Sprott back around the first of March railing against the “blantant manipulation” of the silver market. He followed up about four days later on the Financial Survival Network (Kerry Lutz) and said that it was “suspicious”. Then he was on the Ellis Martin Report saying that he “doubts” it was manipulation. Then he appeared in an interview with Silver Doctor and Brother John F and said “I don’t think there was any manipulation” regarding the Leap Year crash in silver. So, you might want to do your own analysis and keep searching but whatever you do, do it for the right reasons and not because some “guru” is going around spouting about where they “think the metal is going”.

      By the way, back in mid to late December he was also stating that silver could go to a “minimum of $60 an ounce with a possibility of $75″ Funny…the more things change the more they stay the same.

      stay frosty

      • On April 13, 2012 at 9:12 am,
        Big Al says:

        Morning Mark A,

        Your comment is exactly why I say that people need to do their own research!

        Big Al

  2. On April 13, 2012 at 8:52 am,
    shawn says:

    Just as Al and Rick stated avoid third party risk when you purchase physical bullion, also I have bought and sold through Kitco, I will stress that when you ship something back to them make sure you get the courier to scan the item before it leaves your hands. Also Kitco has some issues with Revenue Quebec which I am not sure has been cleared up but I find them to be very competent. As always pay careful attention to storage and remember The Old Navy Saying ” LOOSE LIPS SINK SHIPS”.

    • On April 13, 2012 at 8:59 am,
      Big Al says:

      Yep, Shawn, “loose lips do sink ships!”

      Big Al

    • On April 13, 2012 at 2:53 pm,
      Irwin says:

      Hi Shawn,
      I just spent 1/2 hour on the Kitco site, and couldn’t find anything that mentions shipping fees. I see their minimum order size is $2,500 Cdn.

      Do you (or anyone else) know what their shipping cost is?
      Thanks in advance.

      • On April 13, 2012 at 3:48 pm,
        Mark Alan says:

        Howdy Irwin

        Under KITCO’s “terms and conditions”, scroll down to where it says “Shipping and Insurance” the prices are there.

        Good Luck

      • On April 13, 2012 at 3:49 pm,
        Mark Alan says:

        Or this:

        6.3.1. Shipping
        For delivery of physical Precious Metals other than those described in Section 6.3.3, Kitco will charge the Customer shipping fees as follows:
        · $30.00 flat-rate shipping per package, for orders being shipped to either Canada or the United States;
        · A minimum fee of $135 per package for orders shipped outside of Canada and the United States. Additional shipping costs may be due by the Customer based on the destination and weight of the package. For further details, please contact Kitco.
        6.3.2. Insurance
        For delivery of physical Precious Metals other than those described in Section 6.3.3, Kitco will charge the Customer insurance fees as follows:
        · $4.00 per $1,000.00 of value for Gold, Platinum, Palladium and Rhodium
        · $7.50 per $1,000.00 of value for Silver
        6.3.3. Large Value Shipments
        For orders over $75,000.00, or for 100 oz / 400 oz gold bars, the shipping and insurance fees stated in Sections 6.3.1 and 6.3.2 will not be applicable. A quote for shipping and insurance fees will be provided by Kitco after a Customer Purchase Transaction has been submitted, on a case by case basis.
        Furthermore, Kitco may recommend or require shipment via armored vehicle, which will require delivery to a business, bank, or depository service. If applicable, the Customer is responsible for all shipping and insurance costs for armored vehicle service.
        For further details, please contact Kitco.
        6.4. Taxes and Duties
        Should the Customer request delivery of physical Precious Metals to a location outside the United States or Canada, taxes and duties, including Value Added Taxes (VATs), may be applicable, depending on the country of import. The Customer, in agreeing to these Terms and Conditions, acknowledges that any taxes or duties, including VATs, will be the sole responsibility of the Customer and Kitco will not be held liable for any fees.

        • On April 13, 2012 at 4:06 pm,
          Irwin says:

          Thanks Mark Alan … much appreciated.

          • On April 13, 2012 at 4:14 pm,
            Mark Alan says:

            That’s what we are here for Irwin…to help each other out.

            stay frosty my friend!

        • On April 13, 2012 at 4:29 pm,
          Jody D says:

          Mark A,
          Thank You for all the info on the shipping. I never read the shipping details even though I have considered buying from Kitco. Wow, I realize now how much money I have been saving by purchasing from a reputable coin dealer in my city. Granted, I am not buying the volume many of you may be obtaining, but the 10-20 Silver Eagles weekly are great to hold in person at the time of purchase! Like Big Al, I have been sleeping very well at night.
          God Bless you All!
          Jody D. (female)

          • On April 13, 2012 at 6:02 pm,
            Mark Alan says:

            Howdy Jody D.

            Yep! When I first started buying metals, it was back in 2001. I actually bought my first 300 ounces through EBAY auctions. Yeah, no kidding! Even paying for the shipping, I average about 80 cents UNDER SPOT prices because almost no one was buying silver. I got some great gold coins too because no one was buying and I got some awesome PCGS MS65 St. Gaudens for just over $390!! But people started waking up and then EBAY got too expensive. So, when I started subscribing to “guru” newsletters, I got introduced THE HARD WAY into buying from a reputable dealer. That is why I promote “do your own due diligence”.

  3. On April 13, 2012 at 8:56 am,
    Lynn-(male) says:

    Hey there Al & Rick,

    Having the physical metal in my pocket when I walk around certainly makes me feel better. And not only because electicity can flow through it :D

    All kidding aside, buying futures contracts in gold and silver with intent of delivery in December certainly seems like a terrible idea after what we have witnessed this past year with the likes of MF Global and now the SEC is siding with Goldman Sachs. I mean, if the SEC of CFTC or regulators won’t lift a finger to prvent the outright theft from smaller investors like us, why in the world would we try to “play the game” with them?

    Best,
    Lynn

  4. On April 13, 2012 at 9:00 am,
    Big Al says:

    Good point Lynn!

    Big Al

  5. On April 13, 2012 at 9:30 am,
    frr says:

    Followed Rick Ackerman for years and agree mostly with his assessment of Gold/Silver ETF’s (with exception of the CDN. Au ETF and Sprott’s funds) and find them an easy prey for the bullion banks et al (like gold short sovereigns) to play their tricks of loaning out physical for paper. It has always happened in similar ways – see the London gold pool back in the late 1960′s – as L.B. Johnson consented to the quest of getting it all back later for pennies on the Dollar!
    Whoops – it went the other way, until Tricky Dicky ended the whole scheme with his own scam – defaulting on the Bretton Woods US Dollar hegemony. From there on there was no way other than to inflate the globe’s monetary system, until it reached the shores of the hegemon.
    And here we are today – even bankrupt Greece has had overall lower debt than US of A – and wouldn’t it still be the globe’s reserve currency, with veto rights at the IMF, WB and maybe even on the BIS – I’d give the US Dollar a half life of 2-3 years, which may coincide with the €! … While sovereign gold bunkered in the US (West-Point) may be lost forever to the real owners.

    Anyway, a new system will sooner then later establish a new reality of fair(er), morally and ethically sounder business practises, as we’ve experienced lately by Wall Street and serfs around the globe.

    In terms of the undervalued PM Mining shares it seems to me that the US may be added to the most insecure local’s for these and will be shortly excluded from my favored mining friendly countries. Similar to the fact that I’d hate to fly into the US again and endure immigration procedures, now solidly performed by escapees of former asylum inmates.
    And in the final definition of where we stand in the pricing of pm’s is it paper or reality – the winner is the guy from CPM Group, Jeff Christian, who says on the one hand (like the one armed bandit) it’s a bit overprized and on the other the ratio of physical gold to cash 1:100! So for every paper oz, 99 real ozs of gold will not be available anywhere anytime. For Silver it may be even tougher!

    Well, already too long – so just a final word – there are unbelievable bargains out there in the mining space – go have a look and get ready to accumulate the next batch enormous winners… frr

  6. On April 13, 2012 at 10:12 am,
    PastExpiryDotCom says:

    Thanks Al !
    I guess I felt my ETF was ‘safer’ since the gold is physically held by one of the solid Canadian banks, whereas my impression of GLD ETF is that it is not backed by physical.

    Are your views similar regarding “ETRs” (Exchange Traded Receipts from the Royal Canadian Mint). Our mint both sells and stores the gold right at the mint itself, so there is no 3rd party involved. Storage and security is covered by the ETR’s annual MER of 0.35%.

    Sorry for handle; I should of added some dashes to make it easier to pronounce: “Past-Expiry-Dot-Com”. It’s just the address of my blog featuring my cartoon hobby.

  7. On April 13, 2012 at 10:54 am,
    alexander brutell says:

    thanks for all the comments – personally I have lost faith in David Morgan. I have cancelled his newsletter and my subscription – due to his flip flops. Anybody can be a guru if they go back and forth I guess. I am buying silver and will continue to do so — thanks again

    • On April 13, 2012 at 6:15 pm,
      Bobby says:

      alexander,
      I have to agree with your assessment, i did the same about 4 years ago. I have more to say, but will keep it to myself.
      bobby

  8. On April 13, 2012 at 11:26 am,
    benb says:

    I guess its “pick on dave day”. I noticed the same thing some time ago, he had a video on u tube saying $25 was the “magic” # for silver and up and away from there. At the time it was maybe $15-$20. Anyway, he removed the video. But his fundemental thinking and research to support it is good tho, even if his #s and timing are off, but with all the manipulation who can blame him?

    • On April 13, 2012 at 11:34 am,
      Marc says:

      Benb, Alexander -
      I saw DM at the CRIC in Palm Springs….he gave an excellent presentation and it was quite informative and very well organized. However, both your comments are excellent points….I got into silver…heavily..because of the over-whelming positive trends and demand fundamentals…DM’s price predictions was DEFINITELY NOT one of them, but they are intriguing from a macro-level, but, NOT to be relied upon! – I believe…lets research and think for ourselves..much cheaper and with the internet to help us..it really balances out the “playing field”.
      All the best,
      Marc

    • On April 13, 2012 at 12:19 pm,
      Mark Alan says:

      Hello Benb

      I didn’t mean to start a trend here re: David M. I have a LOT OF respect for the man’s work. I too ONCE subscribed to his newsletter years ago and AGAIN – one stock did really great and the others…well, never mind. However, I have to agree with his fundamental analysis and that is why I truly believe silver will go much higher.

      But here is what gets me…
      We have people like David Morgan, Eric Sprott, John Embry, James Turk, Jim Sinclair, Rick Rule, Doug Casey, etc. and yet…the only ones who are trying to do any real thing about the manipulation are Sprott and Bill Murphy! If these other BIG investors got their act together in a concerted effort, I believe you would see A LOT GET accomplished towards ending this intervention. But, alas, no. We keep hearing that we need to dollar cost average into the metals. Well here is news for most people…THE COMMON JOE SIXPACK is living on credit and doesn’t have a savings account. And with all the inflation that is happening, people just don’t have the money to invest in the PMs.

      The 1970′s early 80′s were COMPLETELY DIFFERENT than today! We didn’t have so many unemployed, nor did we have such a HUGE decrease in the purchasing power of our fiat currency. The ONLY ONES who are really going to be able to move these metals are buyers who are making enough that they can afford to purchase.

      • On April 13, 2012 at 12:33 pm,
        Matthew says:

        I agree with your comments about Dave Morgan. I was a subscriber years ago, too. Turk and Embry were early supporters of GATA. Sinclair has been supportive at least with his comments, possibly more. Obviously your point is right though. Where are the mining executives in all this?

        • On April 13, 2012 at 1:00 pm,
          Marc says:

          Mark A. and Matthew,
          Yep and yep!
          Marc

  9. On April 13, 2012 at 1:03 pm,
    alexander brutell says:

    Glad to see alot of people think that David Morgan is over rated. I think he has made a fortune on people like us who subscribed to his newsletter.

  10. On April 13, 2012 at 4:27 pm,
    Mark Alan says:

    Dear Big Al and family!

    I just got to thinking (yes, that can be dangerous for me), Since we all know that the metals prices are manipulated to some degree at key price points and important dates of announcements, why don’t WE as Big Al’s family try to do something about it ourselves as well?

    I mean, if Bill Murphy, Ted Butler, and other GATA company seem to be the only ones GETTING DIRTY IN ALL THIS, why can’t we?

    Here is my proposal. All of us (if anyone wishes to participate that is) who actually own mining shares from companies that produce the precious metals, make a list of those companies. We draft a simple letter that can be easily cut, pasted, copied, whatever, and address it DIRECTLY TO THE CEO of each one of these companies. We need to start demanding as shareholders, that management act in the best interest of shareholders or else we start putting our money into companies that are actually doing something to solve the problem, like Endeavor Silver, Gold Resource Corp, McEwen Mining and some others. Maybe we should boycott the companies who turn a blind eye to the injustice that is going on.

    I also heard today that some large miners are considering hedging their stock AGAIN! This is stupidity. Look what happened to Barrick Gold the last time they did that.

    Why can’t we as irritated and angry investors start demanding more be done from the very companies we are investing in? Why can’t we do this together? I just can’t understand how an executive from a mining company expects investors to buy their stock when they themselves do nothing to help solve the very problem that keeps most of these stocks and the metals down.

    We might just make one heck of an army if we can really get some names and serious supporters behind this.

    Have a great weekend everyone!

    • On April 14, 2012 at 7:55 am,
      Big Al says:

      Morning Mark A,

      That is a very intriguing idea.

      Please either give me a call (360-392-0493) or send an e-mail with your telephone number to alkorelin@gmail.com

      Best,

      Big Al

  11. On April 13, 2012 at 5:40 pm,
    benb says:

    “Here are the Three Shariah coins together. They are the end of the paper money robbery and the beginning of the restoration of Muamalat. With these coins circulating among us throughout the Muslim Nation we will see the end of the US dollar supremacy fantasy. These are the coins that will THWART THE EVIL ATTEMPT TO CREATE A WOLD PAPER CURRENCY after the inevitable demise of the US dollar. We are ready to now to go all the way. And Victory belongs to Allah.” Shaykh Umar Vadillo

    I couldnt copy the pictures, maybe its the moslems that will cause the return of real money.

    • On April 13, 2012 at 6:05 pm,
      Mark Alan says:

      Where’s the link to this article? I would like to see it. Thanks

    • On April 13, 2012 at 6:06 pm,
      Mark Alan says:

      And then I would like to research the validity of it.

  12. On April 13, 2012 at 5:42 pm,
    benb says:

    oops, guess it didnt say that they are gold and silver. dirham,dinar and fils.

  13. On April 13, 2012 at 6:09 pm,
    benb says:

    Hi guys, i dont know how to put up links, i just googled moslem dinar, i couldnt remember the name “dirham”.so thought to try to find it and ran into this. these are the coinage the koran says should be used.

    • On April 13, 2012 at 8:23 pm,
      Mark Alan says:

      Copy – Paste

  14. On April 14, 2012 at 7:59 am,
    Big Al says:

    Morning benb,

    This is a very interesting article: http://www.gold-eagle.com/editorials_98/taylor112598.html

    Best,

    Big Al

  15. On April 14, 2012 at 7:26 pm,
    benb says:

    good link Al. @ mark, i know its copy paste its my pewter somtimes not doing it and i cant figure it out.