Pundit's Perspectives – Thu 29 Nov, 2012

Warren Buffett, EU Debt Crisis, & Guest Rob Grey


Welcome to the fifth episode of the http://www.resourcespots.com podcast! On this episode the guys discuss Warren Buffett’s tax proposal, compare the U.S. fiscal cliff and the E.U. debt crisis, and finally chat with Rob Grey, VP of Communications for Exeter Resource Corp. to get his take on how all of these macro events are affecting the junior mining space.


Comments:
  1. On November 29, 2012 at 12:19 pm,
    Matthew says:

    I completely disagree with Buffet. You have to realize that it is the so-called wealthy who DO fund businesses directly in the primary markets. So they are directly responsible for job creation. Small investors are, for the most part, unable to participate in this part of a company’s evolution. They are relegated by regulations to the secondary, or aftermarket.
    My view is that the markets (the INDIVIDUALS they’re composed of), are better at allocating (and more efficient in deploying) capital than governments spending money that they did not EARN. Anyone who agrees might see red after this clip:
    Sorry, I couldn’t find it without the commentary.
    http://www.youtube.com/watch?v=JGv7NpiJp3g

    Warren’s father would be spinning in his grave over his son’s stance.
    http://www.goldmoney.com/documents/Howard_Buffett_explains_money.pdf

  2. On November 29, 2012 at 12:20 pm,
    Matthew says:

    I completely disagree with Buffet. You have to realize that it is the so-called wealthy who DO fund businesses directly in the primary markets. So they are directly responsible for job creation. Small investors are, for the most part, unable to participate in this part of a company’s evolution. They are relegated by regulations to the secondary, or aftermarket.
    My view is that the markets (the INDIVIDUALS they’re composed of), are better at allocating (and more efficient in deploying) capital than governments spending money that they did not EARN. Anyone who agrees might see red after this clip:
    Sorry, I couldn’t find it without the commentary.
    http://www.youtube.com/watch?v=JGv7NpiJp3g

  3. On November 29, 2012 at 12:22 pm,
    Matthew says:

    Warren’s father would be spinning in his grave over his son’s stance.
    http://www.goldmoney.com/documents/Howard_Buffett_explains_money.pdf

    I forgot that more than one link puts the comment in “moderation” so I split it in two.

  4. On November 29, 2012 at 12:31 pm,
    Jimmy says:

    My favorite clip on Buffett and gold.
    http://youtu.be/PXVG2CKUcb0

    • On November 29, 2012 at 12:47 pm,
      Marc says:

      Jim Willie of Goldenjackass.com…give a MUST LISTEN TO!!! Over at Financialsurvivalnetwork.com…If I was YOU..I would listen to him…a gold standard will return…it will be the LAST one standing. THERE WILL BE a multiple gold backed currency system with the third world now becoming the WESTERN WORLD become a third world country. China and Asia….Phenom Penn conference just turned their back on the USA…and cut out England, Canada, New Zealand and Austraia….they will start a GOLD back currency standardization WITHOUT the western worlds…
      Better learn to speak Chinese and and get your house in-order…This PHD in Economics has it nailed and it spot on!!
      Marc

      • On November 29, 2012 at 12:48 pm,
        Marc says:

        BTW,
        I bring up Jim Willie…he is the ANTITHESIS of Warren Buffet……………

      • On November 29, 2012 at 12:50 pm,
        Marc says:

        BTW,
        Dont shoot the messenger…me….write your congressman…HA!

  5. On November 29, 2012 at 3:37 pm,
    benb says:

    Hi Marc, its kind of a neat idea, differant currencies redeemable at differant rates in gold. Isnt that how a “gold standard” was originally?. As usual I dont remember where I read it but I read china might have 8-9000 tons of gold by 2015. There have been people for some time saying that the yuan will get to the gold backed point, I think europe will have a gold backed bond somehow,around the time of teir one maybe, It looks to me we are going to get a “gold standard”. I sorta think people should stop saying “the gold standard” as there are many ways to back a currency. I just think the people in the “know” should show they know somthing by saying “a gold standard”. I had a great conversation today with a bmo rep about their PM offering and discussed financial advisors, that is a really deceaving title for a comissioned sales person. A little trick, when meeting a “financial advisor” off handedly ask curiously “what is money?” if he/she doesnt answer gold without batting an eye, better find a new advisor, a financial adviser that doesnt know what money is would be like taking your car to a mechanic that doesnt understand an engine powers it.

    • On November 29, 2012 at 3:47 pm,
      Marc says:

      Boy Benb,
      You my friend, are 1000% right! IMO, I wouldnt touch an investment advisor with a 1000ft poll! Yes, a gold standard is coming quickly…wiping out a lot of people and greatly destroying their purchasing power overnight….a damn shame……all the best,
      Marc

      • On November 29, 2012 at 8:01 pm,
        Brad H. says:

        Yyyyes. I’m one of those former advisors who’s been converted 🙂 I would’ve sold you a garbage mutual fund seven years ago…. with conviction too…. Now, only silver and a lil’ gold.

        • On November 29, 2012 at 8:31 pm,
          JJ says:

          Brad H …really Brad?…imo there is a huge difference between the likes of you and the likes of the Paul Van Eeden’s and Jon Nadler’s of the world….you openly admit you were wrong selling bad advice and have obviously learned what a trend is, momentum…its that easy!! These other clowns make me want to toss my cookies…why cant they just admit they have been wrong for YEARS!! and move on!…I directed Nadler to Sinclair’s call for $1650 in 2011 when it was trading at $500 and that Jim had an open bet with anyone for $1mil that he would be correct, so Nadler put your money where your mouth is, he told me I was nuts and $1650 gold would never, ever happen that and he didn’t need the $1mil….really I said I’m sure there are alot of charities in the US that could…P.V.E. who cares what you think about gold its guys like you who make me ill…you have a big wrong opinion for years about gold yet you dont even believe your own bs, how’s your short position working Paul………..Clowns!!!!!!

        • On November 29, 2012 at 9:19 pm,
          Marc says:

          Brad,
          If this helps you at all, and with all due respect….I wouldnt have touched you either – eight years ago with a 1000 ft poll. FA’s…..priceless….naaah…just DAMN useless!!!

          • On November 30, 2012 at 9:49 am,
            Brad H. says:

            Oh Marc, I was pretty much useless for sure. A lot of book knowledge, piss and vinegar…. I wasn’t so much the smart ass “I know it waaay better than you” type, but now I read stuff that matters. I probably would have even gone down to the Buffett Brainwash conference for advisors. It’s terrible how we see the influence of Buffett’s anti-gold messaging with many people through their FA sheep. Kereport is a great example of common sense sources that more people should read. Heck, gold and silver are in the bible right.

    • On November 29, 2012 at 4:30 pm,
      JJ says:

      BINGO!!!!!!!!!!!

      benb take a bow!!……..you must be an ex-currency trader, no?

      Thats no little trick benb thats THE test imo when it comes to a level playing field talking with anyone about investments…..are they paying attention, do they understand how the worlds reserve paper currency effects investment values?

      This is no longer your fathers bull market, gone are the days of W Buffett when you could finish high school work at XYZ for 30 years and retire, those were the easy investment years…..gone!

      If anyone doesn’t own physical gold or silver they simple are not paying attention, especially the so called financial advisors. I had coffee with a friend recently who uses a financial advisor at RBC the advisor asked me who looks after my money and my reply was pure honesty certainly not anyone from a bank!….I followed up with I’m guessing your mid 50’s….and you’ve been an advisor for over 20 years, well sorry pal but if you were any good you’d be retired and you also own no pm’s metals so obviously you can’t see a momentum trend even if it was looking back at you for 12 years!!!

      And imo those that have only a small amount invested in pm’s will be buyers at alot higher prices they’ve already missed 600% gains with very little in the game % wise.

      Paper currency is ALL ABOUT CONFIDENCE!!….and although my net worth is 90% pm’s I don’t ever want to see $5000 gold as that will be a result of a major financial breakdown….and the confidence in any currency can change with a blink of an eye “like the OK Corral” J Willie suggest a % backed currency will come a % based gold standard will return….I say put up a 12 year chart of ANY currency vs gold….the new gold standard is already here!…..which would you rather own a paper promise or goldnsilver….if gold does multiply from todays levels it won’t happen in $50 a clip but we’ll see $100 up days and gains of $1000 in a month as once confidence is lost the EXIT door is NEVER big enough…….Fire!!!!!!!!!!

      CHEER$!

      • On November 29, 2012 at 4:44 pm,
        Marc says:

        JJ that is EXACTLY what is going on!
        BTW, for accuracy sake Jim WILLIE is a PHD in Statistics! My Bad!

  6. On November 29, 2012 at 4:31 pm,
    Matthew says:

    I’m curious about where everyone here thinks the dollar is going next. At least in the short term, there seems to be a lot of bullish sentiment among both professional and retail investors. I think it will be at 75 in less than 12 weeks. I know it’s foolish to put a timeframe on the guess, but what the heck. Does anyone else care to share their view?

    • On November 29, 2012 at 4:40 pm,
      JJ says:

      I know Richard-Doc is the chart guy here and I’ve used charts to trade for 30 years….I haven’t looked at the US$ Index since the election results….imo regardless of what the indicators are suggesting the currency boyz are all waiting for the fiscal-cliff-debt ceiling issue to determine value….volatility will be wild for the next several weeks but I’m looking for the next TREND set up not daily knee-jerk reactions from one politicians opinion vs another only to be denied hours later….crazy!!

      Long term Matt its trend is still in place since 2002…..LOWER

      • On November 29, 2012 at 4:48 pm,
        Matthew says:

        And of course we know it will go lower in value even if it never plunges in terms of other currencies. Nevertheless, the chart looks quite bad to me -even in the short term.

        • On November 30, 2012 at 12:11 pm,
          JerryOOTB says:

          Matthew…..12 weeks out….puts us at March….and what happens in early part of March……MARCH MADNESS…(BASKETBALL)…..I would bet that you are correct, and
          the dollar is at 72to75….A lot can happen in 12 weeks…..and a lot of people all over the world , are upset…..

          • On November 30, 2012 at 12:46 pm,
            Matthew says:

            Thanks for your input Jerry.

    • On November 30, 2012 at 6:57 pm,
      John W. Robertson says:

      It’s a good question Matthew. Though 75 is possible, I’m guessing that when the fiscal cliff is “fixed” (kicked down the road), many will mis-read that as a sign of strength, holding the dollar’s value. Although, if the budget isn’t addressed in some way, the dollar could very well be below 75. I’ve never made a prediction yet saying “this is the year” — but I’ll come close to making one now: 2013 has a high probability of being the year where the reality of hopeless budget deficits have an impact on the dollar for real. (2014 is my on-target prediction) 2013 is also likely to be the year many of us will look back on, for the cheap valuations of so many good miners and explorers.

      Now that the election is over and we have more of the same, the dollar may not drop in 12 weeks, but it is fundamentally likely to do so some time this year. Co-workers, people I meet at airports, etc. all know the country is running $1.3 trillion deficits, and that the Fed is re-purchasing bonds. In my observations, that’s a sign that debt markets are overly mature, like the shoe shine boy giving one stock tips.

      • On November 30, 2012 at 7:11 pm,
        Matthew says:

        Thank you John. Al should take polls. If enough people would vote, the results could be worth something.

  7. On November 29, 2012 at 4:52 pm,
    benb says:

    Hi jj, no currency trading here. I only started investing a week or so before the 08 crash, figure I was pretty lucky to lose 60-70^ in a couple weeks. From that I figured I needed to learn a thing or 2 about investing if I was gonna play the game.
    After the crash it turned into “ducks in a pond” for awhile, now, I think it wise just to save money as opposed to currency. Markets are so rigged and corrupt I figure they have got to crash and even close down eventually, I posted that 9 billion left a week ago? billions a week have been leaving for some time now,(since mf global) but thanks to “the plunge protection team” the market is staying up a bit. Hard to figure how much the governments are pumping into the markets, but its huge amounts. Guess what happens if a currency drops 20% lol I think we are nuts to be in the market, but ya never know, some people are sayin 2013, thing is, it always seems to be around the corner and if its government money in the market its only going where the government decides it will. Physical is where its at I think.

  8. On November 29, 2012 at 9:26 pm,
    Proud Canuck says:

    in the 90’s and 00’s up to 55% of Americans had investments in the market; my information from the late Bob Chapman earlier this year is that there is now only 10% of Americans invested. Have you gentlemen thought about how difficult it is to finance an explorer/developing miner, especially one that needs 100 million + to build a mine? I make only 50k/ yr and I don’t buy into the progressive tax system or your leftist theories about how everyone (or so many) who invest are already rich and they can afford to pay more tax. Consider that I’m in a 32% income tax bracket in AB. If I’m a homeowner I have to pay property taxes, as well as sales taxes.

    The reality is ..the wealthy practice tax avoidance, and there is no way that I will be ending up better off by taxing the well to do more; you will only have fewer well to do that are actually paying taxes! Mr Fleck, you remember when Paul Martin introduced the federal tax bracket of 26% for those earning between 60k-100k and eliminated the “high income surtax” on those formerly in the top bracket of 29% in budget 2000. All of a sudden Canada was filled with people who were earning a lot of money! …we need a smaller state, more people working to those who are not ( it’s 3- 3 1/2 to one and in 20 years it will be 2:1) most people who try to live off the stock market end up losing their shirt. If people can generate a high income while playing the market using PRE-TAXED INCOME then let them. It’s interesting that you gentlemen didn’t mention the proposed tax increase to 33% from 28% tax on capital gains for gold…or the little old ladies who are trying to live on heavily taxed income.

    This is not balanced, you are as biased as I am on the other side.

  9. On November 29, 2012 at 9:28 pm,
    Proud Canuck says:

    regarding little old ladies, I was speaking to the massive increase of taxes on dividends

  10. On November 30, 2012 at 5:43 am,
    james (the lesser) says:

    Buffet is nothing more than a shill for Obama. While he talks about raising taxes on the rich he has all his lawyers fighting not to pay taxes. Hypocrite, pure and simple

  11. On November 30, 2012 at 7:14 am,
    irishtony says:

    JAMES …JJ……Very true words……….How can anyone thrust a man who’s name means a very poor meal, made up of scraps…….He gets all the cream , while the people get the milk.

    • On November 30, 2012 at 8:24 am,
      JJ says:

      irishtony……let us know when the mumble at your favorite watering hole is all about how much money the average pint tosser is making with their silver and gold investments as it will truely signal the top as in every other major sector top, be it real estate, dotcom etc

      CHEER$!

      • On November 30, 2012 at 11:22 am,
        Marc says:

        Good call…JJ…No, great call!! HA!