Kitco Radio – Fri 22 Jun, 2012

Friday’s Gold Commentary with Ron Hara

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Al KorelinRon Hera

  1. On June 22, 2012 at 10:36 am,
    Tex says:

    Back in the mid-late 70’s inflation was obvious (Remember WIN…”whip inflation now’ per President Ford). Inflation is not obvious at present, indeed, as per Mr Hara, deflationary pressures are coming to the fore. Until such time as money printing increases liquidity, prices are headed downward. Markets are now at the mercy of the central bankers.

    • On June 22, 2012 at 3:25 pm,
      Big Al says:

      Hi Tex,

      I think that we have both scenarios now.

      Markets do seem to be at the mercy of the central bankers. If they don’t want to rebuild the house and are not directed to what choice do they have?

      Big Al

      • On February 2, 2014 at 8:45 pm,
        Himanshu says:

        Super inoavmftire writing; keep it up.

      • On February 3, 2014 at 4:30 pm,
        Alex says:

        Knocked my socks off with knogledwe!

  2. On June 22, 2012 at 11:29 am,
    irishtony says:

    Hello All…………I just read last nights comments, & i would just like to say Thank you all for the warm welcome back, sorry i could not reply at the time , but i was trying to catch up with things. I enjoyed the humour, it made me laugh….. Its nice to know i am more popular than Bernanke…Dimon …& Obama………haha. 19:27 here in the UK, just off to have din’ din’s with my daughters………..Good health to you all…x

    • On June 22, 2012 at 3:26 pm,
      Big Al says:

      You are a good guy Irish and we all missed your presence.

      Big Al

      • On June 22, 2012 at 4:02 pm,
        Jerry O^OTB says:


  3. On June 22, 2012 at 11:53 am,
    Don Hayward says:

    Are “we” all being played for fools? The fundamentals for gold’s rise are solid yet the smart money/paper traders/COMEX/Warren Buffett’s buggy passengers, yada, yada, yada, are all telling us that gold is going no where. The demand for gold remains high, yet there has not been a challenge by the physical gold buying side to challenge the paper contracts. Therefore, the slogan of “don’t fight city hall” is front and center. Most frustrating!!

    • On June 22, 2012 at 12:52 pm,
      going down fast says:

      Don –

      Absolutely right! If and when the physical leads the way, all the days of frustrating mis-direction by the paper traders will become a distant (unpleasant) memory.

      • On February 1, 2014 at 12:42 am,
        Panther says:

        Joann Trainer – What a great shot! You sure had quite a distance to run back and forth from. Glad to hear you had a great trip.

    • On June 22, 2012 at 3:27 pm,
      Big Al says:

      It is frustrating, Mr. Hayward, but I predict that this too shall pass!

      Big Al

    • On June 22, 2012 at 4:03 pm,
      Jerry O^OTB says:

      BUFFETT is just a mouth piece for the Obama Admin….

      • On June 22, 2012 at 4:04 pm,
        Jerry O^OTB says:

        And beside that he is an insider…..he knows the story….and he has a lot to lose…

  4. On June 22, 2012 at 12:09 pm,
    Jed Davis says:

    What Ron is saying is that sentiment trumps technical analysis. Sentiment is not definable, it cannot be calculated. It is sometimes predicted but then, not everyone agrees with the prediction. And yet, sentiment is the main driver of everything, especially something as emotional as Gold.

  5. On June 22, 2012 at 12:58 pm,
    Mark Alan says:


    Technical analysis can easily see the long term picture of any commodity, or market sector. TA is much more confusing on the shorter term, than the longer term.
    I completely disagree with Mr. Hera’s comments and its obvious he doesn’t utilize technical analysis much. TA should be used by those of us who want to know WHEN to enter a market and WHEN to get out. Long term fundamentals and technicals both say gold’s move is much higher. In fact, there are several investors who got into gold based solely on the technical picture back in 2001! They had know idea that our government was going to get this far out of control.
    The physical metals themselves should be bought based on fundamentals, unless you are one who is willing to trade in and out based on TA. Look at what happened in September last year! Gold at $1922 an ounce, with corrections all the way to $1525. That’s nearly $400 an ounce difference. Look at the miners! Most gurus still got it wrong and they were investing based on fundamentals, yet technically the miners looked ready for a shillacking and boy did they get it! Buying and holding stocks is dead! Unless they are dividend stocks. Miners move in cycles and TA will tell you that too.

    I completely disagree with your gentlemens opinions on TA….but I still love Big Al and his show 😉

    stay frosty

    • On June 22, 2012 at 3:29 pm,
      Big Al says:

      Hi Mark A,

      And, we love you too.

      My only personal comment about TA is that I simply do not understand it.

      Big Al

      • On June 22, 2012 at 4:53 pm,
        Mark Alan says:

        And that is perfectly fine, Big Al! Honesty is what I like 😉 and I am sure you do to. Thanks for doing such a great job for all of us!

        hey? did your wife like your drawing? just curious

        • On June 22, 2012 at 8:14 pm,
          Big Al says:

          Hi Mark A,

          My whole family was more than very appreciative of your great comment!


          Big Al

  6. On June 22, 2012 at 1:43 pm,
    shawn says:

    The Empire Club of Canada is a very conservative institution and they have for the last two years been recommending that people with investment capital have at least or let me say as a minimum requirement 25% of their portfolio in physical precious metal, this is unprecedented for these people. I think by this they mean gold although silver also has this qualification they primarily mean gold.

    • On June 22, 2012 at 3:30 pm,
      Big Al says:

      That is very interesting. Thanks for the comment.

      Big Al

  7. On June 22, 2012 at 2:24 pm,
    Richard says:

    TA is telling us that gold is moving down along with the conventional markets. I’m surprised at this time that the conventional markets have held up as well as they have. However, once 2nd quarter earnings come out, I believe the conventional markets are toast. As I’ve said ad infinitum gold should hold up better. Longer term, there is no other place I would rather be then in gold.

    • On June 22, 2012 at 2:44 pm,
      Marc says:

      Amen….Doc…amen..glad you are on our side! :).
      All the VERY best,

      • On June 22, 2012 at 2:52 pm,
        Mark Alan says:

        you and me both, Marc!
        How is sunny California today?

        • On June 22, 2012 at 4:37 pm,
          Marc says:

          It is very sunny today….let’s just say it is well………..picturesque at the beach!
          Thanks for asking and have a great weekend, Mark. Bought more silver today….oh, well….if they keep handin it to me (us), I will gladly take it. You bet!

          • On June 22, 2012 at 8:13 pm,
            Big Al says:

            Rainy up here in the great Northwest Marc,

            Should have sun, maybe, by the Aztec Husky game!

            Best and don’t get discouraged.

            Big Al

    • On June 22, 2012 at 2:51 pm,
      Mark Alan says:

      Howdy Doc!

      I think there is a song in that last line of yours. 😉

      • On June 22, 2012 at 2:59 pm,
        Richard says:

        Hi, guys, we’re living in interesting times. The dollar will continue to strengthen over the summer and commodities and PMs will be pressured. Conventional markets are in the beginning of a cyclical bear market and I can’t believe they’ve held up as well as they have relative to the lousy economic data coming out all over the globe. I’m much more short the China market then ours. The problem for us is the fact as we get deeper into the election season, the more difficult it’ll be for the Fed to invoke QE3 since they won’t want to be seen as “political”. By the election, the bear should be feasting rather well. I’ve gotten out of my oil shorts since we should see a short-term rally soon.

        • On June 22, 2012 at 3:32 pm,
          Big Al says:

          Hi Doc,

          Don’t you think that an official QE3 would be positive for the administration?

          Big Al

          • On June 22, 2012 at 3:42 pm,
            Richard says:

            Possibly, however, I’m starting to wonder if there will be much of a response to it in order to benefit this admonistration. Generally, it takes months for that QE to be positive to the markets.It’s looking like each QE is having less of an affect on movements of the markets except for it just increasing our debt hole. The Fed is realizing this more and more and I believe this is why they’re waiting on pulling the trigger. I’ll tell you this; when the conventional markets are down 25% or more in the future, they’ll pull that trigger again. They’re really now inbetween the proverbial “rock and a hard place”. We might get a short-term lift in the markets if the SCOTUS rules against “Obamacare”. Can you imagine the sell-off if they uphold Obamacare? Anyway you look at it, I, personally believe Obama is toast in November.

          • On June 22, 2012 at 4:20 pm,
            Big Al says:

            Afternoon Doc,

            Pretty hard to disagree with you.

            Big Al

    • On June 22, 2012 at 3:31 pm,
      Big Al says:

      And the key here, Doc, is the word long term.

      Big Al

      • On June 22, 2012 at 3:51 pm,
        Richard says:

        Absolutely! We have years yet in this secular bull market. Patience is the key and I’m a very patient person. Just remember the 43% correction back in the period of 1974-1977.

        • On June 22, 2012 at 4:06 pm,
          Jerry O^OTB says:

          GREAT COMMENT ….DOC.

  8. On June 22, 2012 at 5:40 pm,
    Keep Stacking says:

    Hi Big Al,
    You are aware that most traders in the US are trend traders. I am one. With operation twist going into the future, 30 year bonds being bought by Uncle Sam, the trend of the dollar is up, and precious metals hanging in there. I stack PM’s for many reasons, like you. Big Al, you made a comment about Corvus Gold, and buying quality and when you buy quality, everything falls into place. I like that comment. Best to you..

    • On June 22, 2012 at 8:15 pm,
      Big Al says:

      Thanks Keep Stacking,

      That is my philosophy,

      Big Al

  9. On June 22, 2012 at 7:14 pm,
    benb says:

    Late to post on a friday night but this articale is suggesting we are 1 step closer to gold moving to teir 1. I stole this part of an article from 321 gold
    Even the good ol’ USSA is starting to recognize gold as a tier one asset class. The Federal Deposit Insurance Corporation (FDIC) just issued a notice regarding a new policy proposal on how banks should revise the measurement of risk-weighted assets by implementing changes made by the Basel Committee on Banking Supervision (BCBS) to international regulatory capital standards and by implementing aspects of the Dodd-Frank Act. Under the proposal the following assets would carry a zero percent risk weighting, notice how gold bullion is listed as the second item:

    A. Zero Percent Risk-Weighted Items

    The following exposures would receive a zero percent risk weight under the proposal:

    ■Gold bullion
    ■Claims on certain supranational entities (such as the International Monetary Fund) and certain multilateral development banking organizations
    ■Claims on and exposures unconditionally guaranteed by sovereign entities that meet certain criteria (as discussed below).
    So regardless of what the MSM says, we continue to see more central bankers buying and hoarding gold. New proposals by government banking agencies are being introduced into the system and gold is included as a tier one asset to hold with ZERO RISK. All the signs are in place and what the MSM hasn’t been told yet is that gold is coming back into the banking system.

    • On June 22, 2012 at 8:17 pm,
      Big Al says:

      Thanks for the comment benb,

      I always appreciate what Bob posts on


      Big Al

  10. On June 22, 2012 at 10:04 pm,
    nancy says:

    Al, Ron Hera’s name is spelled incorrectly in the title.

    • On June 23, 2012 at 7:19 am,
      Big Al says:

      Morning Nancy,

      Just checked and I believe it is correct. Ron Hera.


      Big Al

  11. On June 23, 2012 at 11:41 pm,
    nancy says:

    Al, I just checked again so I copied it, see below, you have it correct on the weekend segment.
    “Friday’s Gold Commentary with Ron Hara” this is copied and pasted from your kitco
    radio show on friday June 22.

    • On June 24, 2012 at 12:03 pm,
      Big Al says:

      Hi Nancy,

      I will check it out with Sarah.

      Big Al