You got it yet Al 🙄

I think we need to get excited about a potential brokered republican convention. Al, see if you can have your radio show-podcast from there. Let`s shine the light on the evil doers.

The wicked flee when no one is pursuing, But the righteous are bold as a lion. – Prov. 28:1

A very good example of how government and all to often big corporation operate. Vedran Vuk at Casey Research put this and an even better complete paper on Europe and the implications for where the US Government goes next.

http://www.caseyresearch.com/cdd/implications-european-economic-recovery

“A toothpaste factory had a problem: it sometimes shipped empty boxes without the tube inside. This was due to the way the production line was set up, and people with experience in designing production lines will tell you how difficult it is to have everything happen with timings so precise that every single unit coming out of it is perfect 100% of the time. Small variations in the environment (which can’t be controlled in a cost-effective fashion) mean you must have quality-assurance checks smartly distributed across the line so that customers all the way down to the supermarket don’t get pissed off and buy another product instead.

Understanding how important that was, the CEO of the toothpaste factory got the top people in the company together, and they decided to start a new project in which they would hire an external engineering company to solve their empty boxes problem, as the engineering department was already too stretched to take on any extra effort.

The project followed the usual process: budget and project sponsor allocated, RFP, third parties selected, and six months (and $8 million) later it had a fantastic solution – on time, on budget, high quality, and everyone in the project had a great time.

They solved the problem by using high-tech precision scales that would sound a bell and flash lights whenever a toothpaste box weighed less than it should. The line would stop; someone would walk over and yank the defective box off of it and press another button when done to re-start the line.

A while later, the CEO decides to have a look at the Return On Investment of the project: amazing results! No empty boxes ever shipped out of the factory after the scales were put in place. Very few customer complaints, and they were gaining market share. “That’s some money well spent!” he said, before looking closely at the other statistics in the report.

It turned out that the number of defects picked up by the scales was zero after three weeks of production use. It should have picked up at least a dozen a day, so maybe there was something wrong with the report. He requested an inquiry, and after some investigation, the engineers came back saying the report was actually correct. The scales really weren’t picking up any defects, because all boxes that got to that point in the conveyor belt were good.

Puzzled, the CEO traveled down to the factory and walked up to the part of the line where the precision scales were installed.

A few feet before the scale was a cheap desk fan, blowing the empty boxes out of the belt and into a bin.

“Oh, that,” says one of the workers, “One of the guys put it there ’cause he was tired of walking over every time the bell rang.”

Happy Saturday to all 🙂
Seg #2: The audio is muffled, but did I hear Peter G compare miners to buggy whip manufacturers? He’s starting to give old farts with dyed moustaches a bad image. (joke)

Yesterday I heard someone say that many mining companies are at or close to trading below their intrinsic value. And you know who likes to buy companies below intrinsic value?

Allow me to start this rumour: Warren Buffett may be looking to buy gold in the ground.

The problem I always have with Brent is he will say something that makes good sense then to say something that is contradictory to what he just finished saying. That does not give a reader or listener confidence with Mr. Cook or what his position really is. Nonetheless, Brent’s advice has value so long as you know him and his personality before you can understand why he says things.

I am a financier ( one of several) of a company in the mining industry. Here is the website:

http://www.dnapreciousmetals.com

We are in process of obtaining SEC approval ( if not we will go to the TSX; we are based in Montreal).

Phase I – tailing site ( low cost; above ground, no rock to drill or crack)
Phase II – mine; silver is expected to be 32 g/t which is OK.
We hope to be in production by September!! Making money on the sale of mica!! unlike 90% of juniors be it OTC or TSXV they are not even close to depositing checks from sales. Many have been listed for decades. Others, years. Not cool.

IF a company is not in production it is going nowhere. Buyer beware! Stories will no longer work to pump the stock price. Too many people have been either fleeced or are in financial pain re: price of their shares or prices in PMs; thank you JP M, Bear Sterns, Greenspan, Peter Munk, ECB, MSNBC ,, for nothing.

1) Too many of us, myself included, have lost money in the past; espesh in the 90’s. Too many scams from Vancouver boiler rooms. Too many scams in the junior resources with CEOs and CFOs etc.. using their shares as an ATM machine. Many are deeeeep on debt, 250,000,000 to 600,000,000 shares o/s and release news discussing veins, g/t per cm cubes,,, too much jargon and they have the machine ( false buyers, false sellers and message board squawkers,,). Cannot trust them.

2) Those in production with real news and audited statements with cash will do well. Great time to nibble be it a PM fund, GDX, GDXJ,,

We will not go public before we are close to or in production. Our mill is under construction and 50% paid for! Reasonable share float.

3) I would not buy any mining shares before I personally see their mine or deposit. If it is the Congo or Malaysia or South America ( except Colombia or Chile), could be very good but be careful. Sorry Jim Sinclair.

I am buying PMs to make a profit and as a storage of value.

Best to all. Only the strong survive.

The wicked freely strut about when what is vile is honored among men. (psalm 12:8)

Al, In your discussion with Roger on the SWIFT system and threats followed by actions taken by the US Federal Government with respect to Iran, you hit the nail home with one swing of the hammer. Point being as you said, the US financial, political and international situations are weak, teetering at the edge from crisis to crisis. And for US to take financial trade actions against Iran while threatening to do the same thing to China, India or other nations that don’t do as Washington dictates while Washington is loosey-goosey with nearly everything it does, is stretching the credibility of trust in dollar way too much. I think this is reason behind this weeks weakening of dollar, strengthening of gold and even copper, while all this during a pending collapse in Europe which would normally do just the opposite.

In other words, perhaps the perception of US credibility is declining nationally and internationally even more so than Europe. I think Axel Merk would agree.

In re South America ? with Brent Cook I was surprised Peru’s Humala did not earn a mention. Cook included Peru with Chile as “a fine place to invest”. Well Pres. Humala elected just last year is a little Hugo Chavez, Jr.. Peru is not a Sunday Picnic these days. I sold shares of companies with projects in Peru when Humala pre-2011 election started doing well and was winding up the natives in the Southern regions. Unfortunately I held onto a couple as well for too long. In an under performing sector you want to avoid the laggards. A link below shows NEM taking a step back from Peru with Humala exacting trouble in the North.
http://finance.yahoo.com/news/newmont-could-abandon-peru-gold-230705006.html
Richard O’Brien (certainly is not a wallflower) had this to say “if Newmont is not going to make an acceptable ROI for the shareholders we will reallocate that capital to other development projects in our portfolio, including opportunities in Nevada, Australia, Ghana, and Indonesia.”
NEM can afford to negotiate from strength because of it’s diverse protfolio. It reminds me to diversify regionally as well. The Conga project was recently estimated at 400,000 ounces/y long term (2017) production. Certainly not insignificant. Humala is playing hardball with NEM because it is a deep pocket.
Humala is playing hardball with smaller miners because they do not own NEM’s flexibility. Either way it is an expensive Peruvian game of poker. Good people, good projects and bad politics ends up a bad investment.
Peru cannot afford to scare off the mining industry. There is alot of interesting geology in Peru, however the current government might as well be considered an expensive JV partner.

I’m in the David McAlvany camp or he’s in my camp. I believe the 2nd and 3rd quarters of the year could be problematic for the conventional markets especially based on the Dow/Gold ratio charts. If it unfolds as I suspect the conventional markets could move down while comparatively, gold will move down less. This will give the PM stocks a chance to bottom out—I don’t see many of them going much lower although some still look like they have a little more to go. I actually started to buy some this week for the first time in months. I also agree with Ron Hera that one has to be selective. In fact he mentioned my favorite gold stock and that’s Aurico which I’ve owned for some time and protected myself with “in the money calls”. I just took those calls off and will look to accumulate more with time. There is no hurry since due to the technical damage, one can buy when the bottoming process is obvious. Folks may want to look at some of the other metals, especially palladium. I began to purchase a palladium producer this week also since it appears to have bottomed and there is not much risk any longer to the downside.

Al:

Another excellent week-end show………..I liked in particuliar the McAlvany portion of the your program.

Remember Arnold Bock, the Canuck currently living in Argentina, whose theory of a future worldwide two tiered monetary system we briefly visited about 3 months ago? It turns out that he now enjoys company with Sinclair and Rickards…………..and now has an interesting, albeit, counterintuitive theory on why he believes that PM’s will do very well in the future………………

Bock believes in a nutshell that the Central banks who in the past held down gold as they were sellers, will now defend and drive the PM market much higher and in the process will attempt to destroy all the fiat currency that they created now that they are buyers of PM’s…………………..Makes sense to me……………as the only way that debt can be erased is to deflate/desroy fiat currency.

Would give my eye teeth, left forearm and heck, even my season Cougar tickets up if somehow you could land him on your program for an interview…………

Seg.5…..UPDATE…SWIFT..Indian/Iran….,Sinclair states, in his report, that the Inians,
have changed their mind…with the gold and oil trade….april28
(I think it is in the Fortune Mag. interview….)

“”SWIFT” IS THE HAMMER, that will make every country conform to the banking system
of the west…, I think we can agree, the West Bankers…at this moment are in control…

Seg…8…..Uncle Sam…is turning out to be BIG DADDY,
Big Daddy,, has a lot of kids to take care of…hope he has enough money,
Big Daddy,,, will soon need to borrow from his democratic kids….to stay afloat…
but, the kids are broke also, what a dilima…
But, no problem here, Uncle Ben, has the press……
hope, he doesn’t fall out of the helicopter, on his way to the meeting with the IMF.

@Clay – “The really unfortunate part of this situation is, we Americans have the most stupid and ignorant leaders any nation could possibly get, and we keep getting it decade after decade.”

I disagree. They are very smart and cunning, and the agenda is very clear to each and everyone of them. And they publicly spit it out as well, yet in a cloacked fashion that the general population still can`t see through.

(Henry Kissinger 2007)
http://www.youtube.com/watch?v=dmSVJMO2ABw

I’m with you, Al. Gold and silver finished up about 2% this week, while their riskier cousins were up much more. GDX closed the week about 3.5% above it’s opening price on Monday. Last week’s leader, COPX, showed great follow-through, closing over 5% above Monday’s open. Most importantly, GDXJ closed up about 7%. Even the explorers, as represented by GLDX closed about 6% above Monday’s opening price. Measured from Monday’s low, GLDX closed up nearly 9%. Volume on this week’s up days, Weds, Thurs, Friday, was 3 times the 3 month average. This is all very bullish and becomes more bullish still when we consider the number of naysayers and skeptics even among goldbugs.
Yes it’s early, and a technician will need more evidence that the bottom is in, but the strongest hands are buying value here and now. Technicians don’t help to form a bottom, contrarian value investors/speculators do. The big risk is being out, not in.

By the way, my top four performers this week were up 56%, 23%, 20%, and 11%, respectively.

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