Al's Insights – Wed 30 May, 2012

James Turk discusses gold.

Click download link to listen on this device: Download Show

Just recorded this and it will be on Kitco tomorrow.


Featuring:
Al KorelinJames Turk

Comments:
  1. On May 30, 2012 at 4:08 pm,
    Dennis M. O'Neil says:

    If you look at a long term chart… start looking at March 2008 (St Patrick’s Day high)when AU first piercing over $1000…then overlay that chart with the 2011 August high of $1920….from those high positions on the long term up trend we see very similar patterns….. the 2008 chart evidences the patterns that finally burst AU through $1000 to where it is today….fundamentally you an say we are better here then we were then….. IF THE PATTERN REPEATS it looks to me like we are now bottoming near the top(bottom in price terms) of the head of a reverse head and shoulders…..if you are dollar cost averaging then pay no attention…..if you
    are timing the market then tell me what you think…. am I wrong.. Just my take.
    Play your own hands wisely! Maybe I am wrong and this is AU beginning a 1980esque retreat?

    • On May 30, 2012 at 4:17 pm,
      Dennis M. O'Neil says:

      As Al would say I am am not a TA guy…this is just somrthing that caught my eye.

      • On May 30, 2012 at 4:23 pm,
        Big Al says:

        No, I am not a TA guy, Dennis M.

        I just think that from a fundamental standpoint gold and silver should escalate.

        Big Al

  2. On May 30, 2012 at 4:08 pm,
    Marc says:

    Good afternoon Big Al and all,
    There continues to be a multitude of “signposts” emerging that gold is fast becoming an asset of the ultimate sign of reliability and credibility is terms of a securing one’s store of value. http://www.jsmineset.com/ discusses the “THE NEXT BIG THING IN GOLD”. In short, THE banking supervising committee is considering two things:
    1. Making gold a tier 1 asset with 100% weighting as opposed to a tier 3 asset with only a 50% risk weighting assigned to it.
    2. Increasing capital requirements banks must set aside to operate. (i.e.more gold!)
    The big thing here is that the supervision committee used to concentrate solely on “paper asset” security instruments as the BANKS ANCHOR of solvency and dependability.
    IT LOOKS LIKE THAT COULD BE CHANGING!
    BE YOUR OWN CENTRAL BANK – GOT GOLD (SILVER).
    All the best,
    Marc
    P.S. The last paragraph in italics really nails down gold’s escalation in financial markets and economic equations when determining solvency AND FINANCIAL VIABILITY – becoming equal to ” quality sovereign debt”. This is the START of the gold/silver paradigm shift.
    SOURCE: Ross Norman, Sharps Pixley – London

    • On May 30, 2012 at 4:37 pm,
      going down fast says:

      Great point Marc! If they make it a Tier 1 asset, that could get the ball rolling towards a valuation of gold (and silver) that is substantially higher and more reflective of the debasement of all paper currencies.

      Slowly but surely, I see more mainstream coverage and acknowledgement that something is not quite right in our economy and Europe’s and quite possibly many other countries in the world. Even outlets like CNBC are giving more airtime to the conservative guys like Rick Santelli, et al. We are still in the earliest of stages of market and general public awareness of how screwed up we are.

      • On May 30, 2012 at 4:38 pm,
        Big Al says:

        I have to agree with you, going down fast!

        Big Al

    • On May 30, 2012 at 5:05 pm,
      John W. Robertson says:

      Thank you for posting the article Marc. It’s more than just a blip in the headlines. If the BIS and BASEL starting talking about holding more gold in their vaults, banks around the world are going to listen. And Warren Buffet still thinks gold is useless (at least, if we are to believe his public stance).

      • On May 30, 2012 at 5:14 pm,
        Big Al says:

        You raise an interesting point John W. About his public stance!

        Big Al

  3. On May 30, 2012 at 4:15 pm,
    Marc says:

    BTW, think about that for a moment! It took 11 years into this bull market and roughly 4 to 5 years of obvious financial upheavals to convince these knuckleheads to AT LEAST equate the ‘ultimate store of value…5000 years and running” GOLD to a paper asset! C’mon these people need to get real and pull their heads out of their you know whats – c’mon man!

    • On May 30, 2012 at 4:26 pm,
      Big Al says:

      I will be talking with Frank Holmes this weekend regarding the concept of au becoming a tier one asset.

      Best,

      Big Al

  4. On May 30, 2012 at 5:04 pm,
    Peter says:

    Good points, all.

    To add: A German goldbug website reports that sales of PM coins at the dealers are through the roof again, after a significant lull in Q1. Allegedly, people have lined up to buy silver coins and cleared out the inventory in some stores by afternoon. Another report from the US says people are again returning to by silver eagles. In any case, there seems to be good anecdotal evidence of renewed interest at the retail level for physical.

    Here is something interesting. I had wondered with suspicion for a long time how GLD gets its gold, it’s many many tons, which it apparently and effortlessly “adds” or sells at will of. Sprott, on the other hand, needs months to get his silver order filled, but GLD just kind of does it as it pleases?

    I think the claims made below are true:

    In this explosive interview, Harvey discusses the cartel’s re-hypothecation of physical gold bullion, and documents how the bullion banks are running a shell game by re-hypothecating/ swapping/ leasing Arab investors’ gold bullion deposited at the Bank of England to the GLD and other ‘gold depositories’.

    ‘Essentially the GLD vaults hold physical gold metal, but it’s not owned by the GLD. It has to be re-swapped back to the Bank of England. The Bank of England has basically swapped the gold to the GLD, and it’s not even the Bank of England’s gold, it’s Arab investors’ gold! It’s an obligation on the part of the Bank of England to get it back! This goes along with the whole hypothecation/ rehypothecation story of MF Global. The same ounces of gold are going from one place to another to another.

    The COMEX, the LBMA, the Bank of England- it’s ONE INVENTORY!! It serves three masters, and the fun begins when they all want it back!‘

    • On May 30, 2012 at 5:16 pm,
      Big Al says:

      Yep Peter, the fun begins when they want “their” gold back!

      Big Al

  5. On May 30, 2012 at 5:24 pm,
    Dennis M. O'Neil says:

    We are playing precious metals musical chairs and their are many more bottoms than chairs.

    • On May 30, 2012 at 5:43 pm,
      Dennis M. O'Neil says:

      the above typo was not intentional…..SUM are

    • On May 30, 2012 at 5:44 pm,
      Big Al says:

      Hopefully Dennis M,

      By the way, regarding the casinos I don’t gamble and love the free booze!

      Big Al

  6. On May 30, 2012 at 6:56 pm,
    benb says:

    I believe James Turk is a good man with some good advice. Unfortunate very few listen. This teir 1 asset proposal is a big game changer. Might be what goldbugs bin lookin for fer awhile. Personally, I think gold will be revalued, just as Mr. Maloney has been saying it will for some time. How?,When?, I can answer that when rothchild or a builderberg calls and tells me. Its gonna happen tho, all debts are paid once they do it. And the way these psycos think to heck with the pensioners on fixed incomes that have to pay $10 for a loaf of bread. Only thing a person can do is protect themselves and their families, own some gold, more than you can carry, own diamonds. Unless yur a prepper of course.

  7. On May 31, 2012 at 12:17 am,
    Ken says:
  8. On May 31, 2012 at 4:44 am,
    MissiveDuTexas says:

    Anyone aware the minions of the international financiers having their yearly meeting in Virginia this year?

    Global business titans, government officials and political figures rounded out the guest list of more than 100, though skeptics suspect dozens of names, especially of high-profile individuals, are kept off of it.

    http://www.washingtontimes.com/news/2012/may/30/security-tighter-than-ever-for-power-players/

  9. On May 31, 2012 at 4:49 am,
    MissiveDuTexas says:

    Ho well. Usually they`re not that obvious…

    Rockefeller and Rothschild Merge Financial Operations in America

    RIT Capital Partners is to buy a 37 per cent stake in the Rockefeller’s wealth advisory and asset management group for an undisclosed sum, giving Lord Rothschild’s London-listed trust a much sought-after foothold in the US.

    http://www.ft.com/intl/cms/s/0/efe93494-a9a3-11e1-a6a7-00144feabdc0.html#axzz1wO83PFvt