Kitco Radio – Fri 6 Jul, 2012

Big Al and Trader Rog wrap up the week with their thoughts on gold.

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Al KorelinRoger Wiegand

  1. On July 6, 2012 at 1:54 pm,
    Jed Davis says:

    Quite simple from my perspective: Deflationary Scenario: One oz. of Gold buys the DOW at $3,500-5,000. Inflationary Scenario: 1) Wealth finds a way to maintain its value. 2) Gold price is determined by the amount of M3 in the atmosphere. Gold north of $10,000. Take your pick based on your personal outlook. Either way you win.

    Warning: Do not confuse domestic politics with asset based investments. It has never been proven that the two are related. Gold price is based on economic cycles that are largely resistant to political decision making. (The last 12 years are proof) Geo-political events do influence Gold price because they affect sentiment. But, we have no control over the latter both in terms of geo-political events AND exactly what sentiment will be created by their residue.

    • On July 7, 2012 at 9:15 am,
      Big Al says:

      Morning Jed,

      I found your second paragraph to be interesting and I will be doing some thinking about what you said.


      Big Al

  2. On July 6, 2012 at 1:56 pm,
    benb says:

    Hi Al
    Gotta agree with you that a lousy trader like myself has to take a long term view about gold. Physical the core the markets are what I gamble on, be nice for me and mine if I was a better gambler tho. 1 point, I listened to an interview with Jim Rogers, he was saying that gold bugs always look at the positives for gold. He says that Indias influence will be huge and goldbugs should not overlook what happens there.

    • On July 7, 2012 at 9:17 am,
      Big Al says:

      Morning benb,

      Sure the continued influence of India and China is of huge importance.

      I too am a lousy trader, my friend, and that is exactly why I stay away from technicals. I have to leave that to experts like Rick and Trader Rog.

      Big Al

  3. On July 6, 2012 at 2:22 pm,
    Gun shy says:

    Jed…. If your first scenario holds true why buy gold? If we have deflation gold will not increase to $3500 because the dollar would rally. Gold would decline less than other assets, probably down to $1000 making the Dow:Gold ratio 3.5:1. So gold would outperform stocks but not cash and treasuries. If we have deflation just sit on the sidelines
    And buy the Dow at 3500 to profit in the inflation because stocks will outperform in that case…since 2009 BOTH stocks and gold have doubled.

    Al how does PEM afford to be a sponsor their financials state they had 1.4MM in the bank as of Dec 2011 and they raised 600K, no revenue, in 2011 they spent $555k on IR…WOW that’s is neglegent and 400k in mgt fees. Anybody who ever recommended a company like that should be sued.

    • On July 6, 2012 at 2:57 pm,
      Clark says:

      Gun shy, good question! This company doesn’t appear to worry about how it spends money! In 2011, it’s reported that the top three executives received annual salaries aggregating 444.8k. How can you justify rewarding management so richly that is so incompetent that the stock lost over 90% of its value in little over a year??

      • On July 7, 2012 at 9:34 am,
        Big Al says:

        Hi Clark,

        Where did you see that the top three executives received $444.8 in salaries for 2011?


        Big Al

        • On July 7, 2012 at 9:45 am,
          Clark says:
          • On July 7, 2012 at 11:17 am,
            Big Al says:

            Thanks Clark,

            I noticed that the “fees” to the CFO consisted of payment to him in the amount of $40K and the balance went to a firm of which he is a director.

            I could not find any direct cash paid to Mike Ostenson.

            Let’s both look closer into this.

            Big Al

    • On July 6, 2012 at 4:00 pm,
      Marc says:

      Gun shy,
      Thanks for the input. My feeling is that politicians loathe a deflationary atmosphere with depressionary overtones..QE will be the order of the day…IMHO.

      • On July 7, 2012 at 9:34 am,
        Big Al says:

        Of course it will, Marc!


        Big All

    • On July 7, 2012 at 9:21 am,
      Big Al says:

      Hi Gun Shy,

      Premium is not paying directly for a sponsorship.

      I am keeping them on the site because a lot of us have invested in the company and I want to keep the information flow going.

      I have to tell you, Gun shy, if I were doing this for the money I would have to have my head examined!

      I like your comments very much, by the way!

      Big Al

    • On July 7, 2012 at 9:32 am,
      Big Al says:

      HI Jed,

      I just went over the 2011 financials.

      I noticed that Del’s salary for 2011 was decreased by close to 50% as compared to 2010.

      I also believe that the $555 in IR probably relates to the funds that were raised in the past. I will discuss this with Del and have a comment on that shortly.

      Also, I don’t believe that anyone has recommended this company as a purchase for quite some time now.

      PEM is “on the ropes” at this point. It is not down for the count yet. Remember the movie “Rocky”, there is always hope.


      Big Al

      • On July 8, 2012 at 1:01 pm,
        James Flannigan says:

        > > Hold your shares guys.I have worked on the Midas discovery and now more convinced than ever that PEM holds ground as
        > good as Midas and in my view even better.The hosted rock is the same type of rock as Midas all through the Friday all
        > the way to Deadwood.With a 10 million oz discovery at Midas one must speculate is that the only one in Idaho in world
        > class status?I think not.Pem in (gelogic terms) is sitting on a tiny Shear Zone(large in gold endowment terms) strip between the
        > Bitterroot lobe and the Atlanta lobe.This is the shear zone.Its is full of breccia intrusions unlike at
        > Midas.Shear Zones such a the world class Kirkland Lake in Ontario Canada are world class zones with shallow and deep
        > gold and it is common to see deposits grading 1 OPT.Ken Paul (retired senoir geologist) from Newmont put his finger and
        > tapped it a couple of times on the map I showed him and said “this is the kind of ground JRS would kill for,large gold
        > deposits are found in these kind of shear zones.The key for PEM is at depth and if they deep drilled Friday there would
        > likely be many more times the gold then whats at the surface”.Those words made me know that PEM was a special situation
        > and I should hold my shares until its over.
        > There is no doubt in my mind that PEM has bar none has the most prespective rock in Idaho.There were 20 mine historic
        > workings on the OSZ for a reason.ITS FULL OF GOLD EVERY WHERE!
        > With the share price at 6 cents in this depressed market with the pulling of the 43-101 has caused many investors to
        > question our investment in PEM.WE MUST NEVER LET THE MARKET PRICE VALIDATE OUR INVESTMENT over PEMs Geology and known
        > data.
        > PEM will recover and when the rest of the market gets in a better mood,they will come in waves for PEM shares.I have
        > been adding to my position for months now.
        > I will not give up on Del and his team.I don’t care if the stock is 6 cents I will buy more from those who did give up on
        > Del and PEM.I have no problem if any one has thrown in the towel on PEM.But not me…
        > Thats were I stand.
        > James Flannigan

    • On July 7, 2012 at 7:37 pm,
      Jed Davis says:

      Gun Shy: Great Question. In a deflationary scenario, fear puts $ into hard tangible assets. If stocks are tanking, INvestors want their money in something that preserves wealth. The 1930s is a good example.

  4. On July 6, 2012 at 2:29 pm,
    Bobby says:

    The day to day “noise” drives me crazy. I really think, for myself, I will try to tune it out until after the elections. At that point, I will re-evaluate my positions. War, elections, crooked bankers, liars, thieves, are all factors that need resolve.
    I plan on enjoying the summer and fall seasons with my family.

    • On July 6, 2012 at 2:59 pm,
      Jerry O^OTB says:


      • On July 6, 2012 at 4:03 pm,
        Marc says:

        Boy Bobby and Jerry,
        VERY well said – excellent advice and dam……..great level-headed thinking :>…..

    • On July 7, 2012 at 9:35 am,
      Big Al says:

      Morning Bobby,

      I would be curious to see what you think of my Daily Editorial for 7/7, Saturday.

      Big Al

      • On July 7, 2012 at 3:08 pm,
        Bobby says:

        Ok, I am looking forward to seeing it posted.

    • On July 7, 2012 at 7:39 pm,
      Jed Davis says:

      Agreed. The noise is not easy for an investor. I think we all share your sentiment.

  5. On July 6, 2012 at 5:32 pm,
    Lore says:

    China buying 5000 tons is good enough for me. Real money talks…

    • On July 6, 2012 at 8:30 pm,
      Marc says:

      A resounding YEP

    • On July 7, 2012 at 9:36 am,
      Big Al says:

      Yes, it certainly does Lore!

      Big Al

  6. On July 6, 2012 at 11:54 pm,
    Matt says:

    Gun shy,I would think you are as brain damaged as Martin Armstrong.
    You are responsible for your decisions,You and you alone.Shame on you!
    So,in the words of Jim Sinclair consider what he has said a response to your position on gold:
    Anyone that does not see today’s gold market as a rig is blind or brain dead.
    …. stand tall because gold will trade above $3500 and not in some LaLa Land future of Armstrong’s imagination.


    • On July 7, 2012 at 9:37 am,
      Big Al says:

      Hi Matt (or is it Jim),

      I would be curious to know your opinion of Martin Armstrong.

      Big Al

  7. On July 7, 2012 at 10:29 am,
    Matt says:

    Hi Big Al,
    It appears that the nature of his head injuries he suffered under incarceration and the nature of and the time served,itself,were life altering.
    Martin fully knows that his life is a gift and it can be taken in an instant.
    There are plenty of opinions out there that a simple google search will bring up but those of his equals that have known him for some forty years should have more information and opinions than I could ever be privy to.
    Whatever he knew that he has paid dearly for suggests he can not now be the man he once was before he was interned.

    • On July 7, 2012 at 11:09 am,
      Big Al says:

      Thanks Matt,

      I understand and appreciate you getting back on this one.


      Big Al

  8. On July 8, 2012 at 2:38 pm,
    josh says:

    Hi Big Al
    i was listening to the interview u had with trader Roj on Friday(July/06) and i was a little confused,, At the beginning he was talking about how the USD will go up(possibly up to 90) and will pressure precious metals, but then he switched and predicted that gold will be around 1735 by September… please explain..
    thank u