Minimize

Welcome!

Big Al and Bob suggest that everyone “batton down the hatches”. Do you agree?

Big Al
January 25, 2014

Click download link to listen on this device: Download Show

Discussion
160 Comments
    CFS
    Jan 25, 2014 25:21 AM

    When Bob is talking about derivatives as THE problem, he is precisely correct.
    Specifically credit default swaps WILL soon blow up the financial system.

    What has happened is that banks and brokerages have written insurance for bonds, which WILL default. These banks and brokerages have happily taken in the insurance premiums, but have never set aside any reserve to cover as pay out. They did so to totally irresponsibly give large bonus payments to executives.
    Bob is right that the collapse is NOW beginning. The devaluation of Venezuela and Argentina Will trigger CDS problems for any bank/brokerage that covered by CDSs commercial or even sovereign bonds written in currencies other than the Peso or Bolivar.

      Jan 26, 2014 26:20 PM

      Not looking very good is it Professor!

    Jan 25, 2014 25:23 AM

    It’s coming no yet but it’s coming BUY BUY ! Don’t miss the boat !!!!!!!!

      Jan 25, 2014 25:30 AM

      First we will have much more deb and middle east problems ! MUCH MORE STARTING NOW !!!!!!!!

        Jan 26, 2014 26:20 PM

        Might be too late for serious Middle East problems. We will see.

    CFS
    Jan 25, 2014 25:31 AM

    I don’t fully understand what you mean by “batten down the hatches”.
    I will state that intelligent people should run to their bank and withdraw all their money, unless they are positive their bank will survive.
    (Some banks will survive)
    The guaranteed insurances such as FDIC insurance will NOT be worth the paper they are not printed on. The reserve is so pathetically small, that the collapse of a few small banks, or one bigger bank will wipe out the reserve. Then “insurance” coverage will be due only to the possibility of Government printing to cover and that is not guaranteed by any means. So do think deposits smaller than $250K or 80K pounds are safe, depending on where you live……As Jim Sinclair has been saying: NOTHING IS SAFE in a bank.

      Ann
      Jan 25, 2014 25:08 AM

      The last time i checked,Canada’s CDIC has approx.$3.5 billion insuring approx.$1.1 trillion.

        Jan 26, 2014 26:22 PM

        Source Ann?

      CFS
      Jan 25, 2014 25:53 AM

      Do not think 250K or 80K deposits are safe! I omitted the not!

      GOTS……………….

      Jan 26, 2014 26:21 PM

      Thanks Professor

    CFS
    Jan 25, 2014 25:35 AM

    I wonder how many Americans visit Ukraine. (I was there a year ago and never met an American, but seen in a main square outside the US embassy:
    http://static0.demotix.com/sites/default/files/imagecache/a_scale_large/600-6/photos/1300809687-ultra-left-protest-us-role-in-libya-outside-the-us-embassy-in-kiev-_632186.jpg

        Tom
        Jan 26, 2014 26:45 AM

        All I see is men in the crowd…that’s just one of their problems…they treat women like dirt!

          Jan 26, 2014 26:25 PM

          You could be correct Tom.

          I grew up in a Russian family with mostly Russian friends. (I did not speak English until I started Kindergarten.)

          In my entire childhood life I never saw a Russian man treat a woman like dirt. Honest to God.

          Now, I realize there is a difference between a Russian and Ukrainian. I simply did not think the difference was that great!

    Jan 25, 2014 25:44 AM

    Batten down the hatches:
    – fill all the cars’ tanks, buy another propane tank for the grill, clean & service chainsaw if needed
    – buy groceries for 1 month, paying attention to nonperishable food and staples
    – pre-pay all your bills online if possible
    – draw down all the cash in your account down to emergency levels only
    – fill any interior bottles in the kitchen with water as needed
    – charge all cell phones, tablets, iPads, etc.
    – back up computer(s)
    – change batteries on alarm clocks, radios, flashlight, etc. to be fresh
    – if needed, bring firewood from outside to inside
    – telephone all neighbors, relatives, and emergency contact relatives to be up-to-date with all of them

    Did I forget anything?

    Dan
    Jan 25, 2014 25:46 AM

    Roubini and anyone else that is a media specialist NEVER seem to have a consists to tract record. It’s pretty hard to be a contrarian when your in the lime light.
    When you see Dent crawl out of the woodwork you know your in trouble.
    The big event is behind us and I think the banks are on guard now and investors as well making it more difficult for another surprise event…
    Many large companies trimmed the bottom line, cuts workers, bought back shares, consumers spending a bit more, and no doubt QE and I believe that has contributed to the a reasonable rise in the DOW and S&P. I wouldn’t touch it with a 50ft pole but I don’t think it’s as big a bubble as folks think.

      Jan 26, 2014 26:27 PM

      I hope that you are at least partially correct Dan!

    Dan
    Jan 25, 2014 25:50 AM

    Bobs partly correct. USD is used toilet paper but almost all currencies are worse.
    Where you going to run? USD can still absorb more capital than others. It’s the go to ass wipe in times of crisis.

    b
    Jan 25, 2014 25:14 AM

    I think Bob mentioned that the next QE should be when metels really start to move up. Celente is saying the same thing.
    Seems to me they wouldnt be the only people that have that figured out, so maybe expect a small taper again?
    That should cause the market to deflate a little and gold? Maybe up a little?
    I noticed the majority of stocks on the kitco list were down yesterday, maybe the shares follow the dow/s&p, makes sense.

      Jan 26, 2014 26:28 PM

      That is interesting, b, as most of our portfolio is up. (Still underwater, but up from recent lows.)

    Jan 25, 2014 25:31 AM

    Bob, thanks for the feedback on Roubini. I also think Roubini is wrong on Gold.

    Not sure on his statement that the worst is over and the US economy is healthy enough for further tapering. Would hope that he is right on this as it would be the best for us all.

    On the other side Roubini and other speakers at Davos compared 2014 with 1914, the year when the first world war began. I guess the world is in a fragile situation with all the conflicts.

    Will be interessting to see what the Fed decides next week concerning further tapering.

      Jan 25, 2014 25:48 AM

      When Bob M says ‘RESOURCES’, does he distinguisjh between industrial base metals, silver, gold, oil and other energies?
      If we are comingout of the eye of the storm, will not the base metals and perhaps even energy get clobbered, especially if there is another credit meltdown with failing banks?
      There is perhaps also at least a temporary glut of oil to some extent due to fracking. If this collides with falling demand, could not the oil price and oil stocks crash – unless of course the Middle East saves the oil price by blowing up in a war?

        Jan 25, 2014 25:52 AM

        Jim Sinclair is having a little go at harry S Dent too. Dent saiid:
        ‘“What is more important than all the central banks in the world?” Quite simply, the answer is: Babies! They grow up, they enter the workforce on average at age 20. They start earning money, spending money, borrowing money. By the time they’re 46 years old, they’re spending the most they ever wil’
        to which one of Sinclair’s pals has replied:
        ‘Harry, Harry, Harry…….They won’t be entering the workforce, they’ll be entering the unemployment lines. Then the government will say “damn the other currencies, we’ll print enough money to paper every road in America.” ‘

          Jan 25, 2014 25:53 AM

          Dent’s statement about peak income at 46 certainly des not apply to me. I think my peak income was at aboit 33, in 1998. One person doth not a depression make but I wonder if that favourite statiistic of Dent’s is even true now. I bet it isn’t in Greece!

            Jan 26, 2014 26:31 PM

            That’s funny. Peak income at 46. Mine was quite a bit later.

          Jan 26, 2014 26:30 PM

          I tend to agree with the latter!

        Jan 26, 2014 26:30 PM

        I believe he is referring to precious metals stocks, Silverbug Dave.

      Jan 26, 2014 26:29 PM

      Yes it certainly will be interesting, Thomas!

    Jan 25, 2014 25:52 AM

    THIS IS…….A VERY SERIOUS ECONOMIC CRISIS THAT HAS HIGH ODDS OF BEING

    …….A COMPLETE MELT DOWN……of monumental proportions. Worst the world has ever
    seen and hope I’m wrong.

    Well…..I felt strongly to comment even though I have said I wouldn’t any longer.

    My investment posture has changed from anything paper incl. Mining shares to
    only physical gold. Silver in my book might be more risky because gold is the
    Only metal that proves the test of time in a full blown crisis that we might be in
    soon. CEF is the only paper ETF I would consider but silver is a large percentage
    of the fund.

    PHYSICAL GOLD is now the only thing one should really consider now. Paper gold
    and shares are now at high risk with silver.

    AGAIN, IF THIS IS A FULL BLOWN CRISIS PAPER OF ALL CLASSES IS GOING TO BURN
    VERY HARD. This is bad news because I really like investing in the miners.

    Looks like all my capitol will flee paper gold soon and be in physical gold only
    No ETF’s either. GLD and others will most likely default in a full blown crisis.

    IMVHO

      Jan 25, 2014 25:35 AM

      HH,
      Smart guy, BUT SILVER WILL SURVIVE..it was MONEY, before GOLD was!!

      Jan 25, 2014 25:11 PM

      I think it’s a big mistake to shun the miners and silver. The time to favor gold is probably years away.

        Jan 25, 2014 25:18 PM

        Thanks Matthew – forever level-headed!

          b
          Jan 26, 2014 26:03 AM

          I thought the big “pay off” for miners comes when there is no more physical gold to be found.
          Shares would be the only thing gold left to invest in.

          CEF has a confiscation risk as well as there should be a minimum # of share ownership required to cash in physical.
          I feel the confiscation risk is bigger than people think it is. Should there be almost no gold to own, and the governments realise they need it, there is no telling how politicians and bankers would view stores of it.
          I am of the view, if its not in your hand you dont own it.
          But as far as paper goes, cef is a good one of course.

            Jan 26, 2014 26:34 PM

            And that, b, is why we have always taken personal possession.

        Jan 25, 2014 25:34 PM

        I’m referring to a full blown crisis only. I have not thrown in the towel yet on paper gold
        Etc. miners…..but one should be very watchful.

        A STOCK MARKET CRASH IS A FULL BLOWN CRISIS. We have discussed this before.
        Gold shares will get trashed big time.

        If this is a controlled decline we will be in gold heaven. However, a huge black swan event
        Is very likely too…..A CRASH IS A CRASH….everything goes….look at history.

          Jan 26, 2014 26:03 AM

          Miners have already benn shilacked. Those with good balance sheets, proven management, and good deposits with mid to high grade ore should be fine and do very well. Thus storm is just getting started. The CBs have created a mess and there is no way out. The un intended consequences of their actions is just starting. Bob M. Is a very smart guy. Listen to him The CDS is a shitstorm brewing and it is going to be nasty. I expect smart money to start to flee to gold. Watch in coming weeks.

            Jan 26, 2014 26:35 PM

            I personally agree with you Sandiegoman.

      Jan 26, 2014 26:25 AM

      Can’t disagree with Heavyhitters but still the miners do have attributes to keep in what’s coming.

      We all need to remember the physical gold short positions of the Central Banks around the world, and most specifically the FED. Over the decades the US Treasury would define Our gold which is all truth Gold owned by the People of the US and not the government’s gold in changing terms. First several decades ago the Treasury referred to the gold held in vaults as Physical reserves, then changed the term several times to where they now call it “Deep Storage”. Knowing how the Federal Treasury changes the way it speaks over these same years, such as how they define unemployment numbers, inflation, and many other common figures, it could very well be that “Deep Storage” Gold refers to gold in the bottom of various gold mines around the US, Perhaps most of this deep storage gold in Nevada. Is this the reason it will take the Fed 7 years to get just a small portion of the German Gold they owe?

      I can not see the US treasury actually trying to run a gold mine, although I would not put it past their level of stupidity. Perhaps slave labor? More likely it will be these gold mines that during this coming collapse will be the only gold available to balance the books of the worlds central banks, and because the Fed is the biggest physical gold short in history, they are going to have to get this gold from somewhere especially during the Great Reset where the US Fed Dollar falls from world grace.

        Jan 26, 2014 26:37 PM

        Yeh Clay, the German situation is more than slightly interesting!

      Jan 26, 2014 26:33 PM

      I would not call that a “very humble opinion” Heavy.

      By the way, great to have you back!

    CFS
    Jan 25, 2014 25:01 AM

    One needs a place to store wealth and a currency in which to trade. (Buy things)
    I believe gold stores value, but is not sufficiently divisible for trade. Silver provides for trade.
    Remember the word for silver and money are the same in 27 languages.

      Jan 25, 2014 25:19 AM

      True….however gold is the metal of choice for appreciation in a full blown crisis.

      Just look at what hsppened on friday…..gold held and the others sold off hard.

      Silver is not performing because …maybe the elite know its coming a full blown
      crisis…they are not buying it spparently. Silver might have a problem because of
      the severity of whats coming. THIS IS NOT THE 70’S. ITS A NEW BALL GAME…

      ITS THE END GAME !

        b
        Jan 26, 2014 26:22 AM

        IMO gold should move first, but silver should follow.

        Mr.Price explained the error with our silver coins was putting a dollar figure on them. What needs to be minted on them is weights. His eplanations are brilliant really.

        Aurum, have weights printed on them. I think those are a great idea.

        Jan 26, 2014 26:38 PM

        We can hope that you are incorrect Heavy. The question; however, is “are you”?

      Jan 26, 2014 26:38 PM

      And that, Professor, is why we have more of it than gold!

    Jan 25, 2014 25:22 AM

    Bob/Al you’re right: It is all connected!

    China’s M 2 is up by an absolutely insane 1000% since 1999, while domestic credit has risen from $9 trillion to $23 trillion since 2008, even as a Lehman moment hangs over one or more of China’s banks come Jan 31st.
    Deutsche Bank’s shares tumbled last Monday due to heavy litigation and restructuring costs.
    Ballooning debt levels haunt every advanced economy.

    Civil unrest from Kiev liable to erupt from east to western Europe.
    Unemployment everywhere. Boasts here in the UK that the number of unemployed has come down to 2.32 million ignore that many of the new jobs are for the self-employed or part-timers, just as they are in the U.S. where in reality there are 102 million between ages of 18 and 64 out of work.

    50 million on food stamps in the U.S. Small wonder that the National Defence Authorisation Act of 2012 (which amongst other things allows the suspension of habeas corpus, and the indefinite detention of any resident) anticipates the nation becoming a battlefield.

    Global instability growing exponentially. China’s navy now includes scores of landing craft ready to do what? Land on Taiwan or Japan, even as it stakes its claim to those indeterminate rocks in the East China Sea. For apparently according to one Davos report China and Japan’s loathing for each other has reached lift-off.

      CFS
      Jan 25, 2014 25:39 AM

      I actually think an attack on one or more of the Philipine Islands happens first.
      But we will see.

        Jan 26, 2014 26:42 PM

        Why the Philippines?

        CFS
        Jan 26, 2014 26:05 PM

        I guess since it is in the South China Sea maybe it shouldn’t be called a Philipine Island.

        http://www.infowars.com/china-set-to-seize-south-china-sea-island-by-force/
        It would be difficult logistically for the US to take back.
        It makes logical sense though, because it tests the resolve of the US. I think that the China power structure contains very intelligent people who want and need to expand territory but will do so carefully and patiently. I don’t think the obvious Japanese Islands will be a first choice. It is better to stretch and test the resolve of an opponent first.

      b
      Jan 26, 2014 26:37 AM

      I always thought the Japnese plan was sound, except for not taking Hawii, but they did think there were divisions of infantry defending. But still, you gotta wonder why that would prevent them from invading.
      Anyway, the way I always looked at it, is they didnt have enough infantry to occupy all those islands and defend effectivly.

      Excluding the way a war would play out now,(we all die in nuclear flames) having more modern equipment, the Chinese do have the infantry to be successful with that Japanese plan. It was a good plan, just a couple minor errors.

      But its not good moves that win chess games, its the omision of error. All games should be draws, whoever makes the mistake loses.

      On the other hand, Bill Cosby points out that chess is not really about war, its about marrage, the king moves 1 square at a time and the queen does whatever she wants.

        CFS
        Jan 26, 2014 26:12 PM

        As someone who studied the Korean war, I would not want to be in a ground war against the Chinese. This time not only do they have the numbers, they have equally good technology.
        As far as nuclear war – both sides will lose!

          Jan 26, 2014 26:43 PM

          I really don’t see serious ground wars ever again, Professor!

      Jan 26, 2014 26:42 PM

      Your 4th and 5th paragraphs scare the daylights out of me Reverend!

    Jan 25, 2014 25:25 AM

    sorry should have added….Russia flexing its muscles over mineral rights in the Arctic ocean, while Israel’s Benjamin Netanyahu promised only last week that ‘Iran’s nuclear programme

    Jan 25, 2014 25:28 AM

    Seems my computer’s playing up….TO CONTINUE. ‘Iran’s nuclear programme WILL be stopped.’ Anyway that’s enough for now to say that yes IT IS ALL CONNECTED!

    Jan 25, 2014 25:39 AM

    HH thanks. No doubt this is the worst thing we’ve ever seen. And maybe we have to be fleet of foot in the near future, I don’t know. No question that if one reads the signs it all looks terrifying. But do I think it’s the end of the world? No. Do I believe the best PM stocks will survive? Yes.

    Thank God that for those of us who believe we have the Holy Spirit to advise us because all logic’s out of the window, and right now we’re all flying blind.

      b
      Jan 25, 2014 25:54 PM

      Just because you mention “thank god.”
      A theme today seems to be “everything is connected”.
      Yup,sure is, and there have been people trying to get that across for years.
      Your fish dinner depends on herring, plankton etc.
      The water cycle includes our oceans and rainforests etc.

      It is ALL connected. Nobody see that EVERYTHING runs in cycles? planets,seasons,women,life itself?
      Because you mention “thank god” I have to say, I feel a belief that a god is seperate from one self creates this illusion that things are seperate.
      This belief (i feel) is one of the huge diseptions of some religions. But we are going to learn we are NOT seperate from “the gods” or a “creater”. I do think its too bad we choose a hard way to learn it tho.

      Anyway, Im sure the black plague,Gengis Khan or nuclear bombs dropping or the North American drought in the 1700? (nowhere to even float a canoe) looked like “armagedon” or “raptrue” etc to some people, but they wernt.
      Armagedon was actually our first recorded battle I believe. In the west, not sure about south america, southern africa or asia.

      As Bird pointed out the other day, there are economies doing pretty well, how about iceland? as they had the common sense to jail a few bankers.
      Us, common sense? nope,not even a consideration here in the west, lol.
      We decide to allow our bankers and polititians to take us to the point of desperation.
      Normal really, people seldom deal with anything before its a crisis.

      Thing is, some people will do just fine whatever happens,I think its those of us that inform ourselves. I could be wrong tho and were aalllll doooommed.

      Jan 25, 2014 25:10 PM

      Hey brother Andrew……I said few weeks ago…..things sre very dangerous and paper gold
      is…….miners in foreign countries. ….WAR coming….

      ITS NO TIME TO THINK ABOUT HUGE PAPER PROFITS

      time to get REAL……GOLD IN HAND…..

      Have not given up on paper gold yet…but best to be early than…LATE

      If the miners poop out and do not stage a big rally on good rise in gold

      I’M OUT !

      Stocks crash and best to be in cash too…..everything will get crushed.

      PHYSICAL GOLD MUDT BE HELD NOW FOR THE NEXT FEW YEARS

      no matter what the price goes to…..because its going to 10k an oz.
      in a few years with a full blowen crisis.

      ITS REALLY SCARY whats coming. GOLD IN HAND IS BEST.

        Jan 26, 2014 26:47 PM

        After all Heavy, it is the asset of last resort. (And in case you don’t remember, I have been singing that song for a long time!)

      Jan 26, 2014 26:45 PM

      I am not even close to flying blind Reverend. (Something about the Holy Spirit!)

    Dan
    Jan 25, 2014 25:40 AM

    Where you going to run? To the best toilet paper.
    http://armstrongeconomics.com/2014/01/25/the-emerging-market-crisis/

    bob
    Jan 25, 2014 25:23 PM

    The US might be better off than most other countries in many respects but the fact is the US never got out of recession.

    The gummit numbers are lies. Just go to the grocery store. Not only are prices going up but the product sizes are shrinking. And this applies to more than groceries. We are paying more for less.

    The truth is thie “recovery” is just intermission to the big show that began in 2007. The fact is the economy is near depression levels. You just don’t see it like the ’30s because instead of bread lines there are SNAP cards.

    I was at the park the other day. About every five minutes someone went through the trash cans to look for recyclables. And what floored me was that most of the people doing this were not the traditional homeless looking people. There were old, young and in between.

    What is scary is what is probably going to come next as things get much worse.

      Dan
      Jan 25, 2014 25:13 PM

      4 of us went to a pub last night on the BC coast. 4 meals and 2 bevies each and 1 desert. $180.00 I just about crapped myself.

        bob
        Jan 25, 2014 25:36 PM

        Even the cost of “fast food” has gone up quite a bit.

        I tend to eat out as little as possible.

          Dan
          Jan 26, 2014 26:33 AM

          Bob: they are using EVERY trick in the book to keep fast food prices down.. Can you imagine if a hamburger went up as fast as a steak in a good restaurant?
          They got to make it look affordable for the common man. I buy my beef from a friend @ $3lb. That’s a cheap as sawdust these days. I don’t eat out much because the quality is crap and the restaurants at cutting corners and the food is unsafe have the time.

            Jan 26, 2014 26:51 PM

            I have solved that problem. I just go to restaurants and drink good red wine! Plenty of nutrients and the sugar in the wine is a great substitute for desert! (I did not fall off a turnip truck!)

        b
        Jan 26, 2014 26:48 AM

        Keg in Calgary is $50 a person.
        Inflation and deflation, just as Rickards said it was.
        Oh, and the Kegs are packed. Economy is great,havnt we heard?

          Jan 26, 2014 26:52 PM

          And that, b, is assuming you drink cheap wine and not very much of it!

        Jan 26, 2014 26:50 PM

        I assume you had hamburgers. $180, unfortunately is chicken feed at least in Vancouver. More like twice that. Remember, Dan, inflation is under control!

      Jan 26, 2014 26:49 PM

      I have definitely noticed the exact same things Bob!

    Jan 25, 2014 25:25 PM

    Not so sure about selling all my mining shares. What I probably will do is lighten up and
    Buy CEF …..its got silver but its the best paper gold I believe. Mix it all up….going to buy
    Physical but not a whole lot.

    60 % Miners

    30 % CEF

    10% Physical gold

    IF THINGS LOOK LIKE ITS GOING TO TIP OVER I WILL SELL ALL MY MINING SHARES

    Next week I’m going to mix it up. Not taking any chances on all mining shares.

    CEF will do great. Hold that long term with my physical gold. Mining shares
    Must watch carefully. These other countries have been known to take over
    the mines. Its not all rosey with these miners. IMVHO

      Jan 26, 2014 26:25 AM

      I like your spread. I do like CEF as the hold bullion audited externally. I have held mining shares and have taken a large portfolio hit on them. I am holding but in friendly mining jurisdictions that have less chance of govt involvement. US, Canada, and Mexico. I like NGD and ANV for deposits and growth.

        Jan 26, 2014 26:53 AM

        Its a lot safer spread than all miners. In fact, the performance maybe safer and better than all
        miners. Bullion will at times out perform the miners. Billion has been in favor many times in the past. Just have to be patient.

    Jan 25, 2014 25:48 PM

    The debt level of the consumer in Canada is astronomical, and they all say that’s okay because everyone is doing it and they will not let default happen. People here are all sleep walking, and totally nuts. DT

    Jan 25, 2014 25:19 PM

    Boyz, I tell ya … that Martin Armstong guy ….

    I’m on his mailing list, so I get about 5 emails per day, as others here do also. He covers lots of topics, seems to know what he’s talking about, and I wouldn’t be surprised if he’s 90% accurate in what he says.

    Only problem is … most of the time I have absolutely no idea WHAT he’s saying!

    “Thanks To Calvary” By The Old Friends Quartet
    http://tinyurl.com/nyqevpk

      Jan 25, 2014 25:36 PM

      Irwin: That’s because Martin himself has no idea what he is saying. If Martin would just stop writing, talking and saying things and start thinking first, maybe he might come up with something real, instead of jive talk.

      Jan 26, 2014 26:24 AM

      Thanks Irwin, inadvertently you’ve introduced me to the Collingsworth and Hopper Families. As for Kim Collingsworth playing ‘How great Thou art’ ….blows one away.

      Take care, Andrew

      Jan 26, 2014 26:01 PM

      I think Armstrong sold out to the elite in order to get out of jail–dont blame him, but I think that he is now just another mis-informationist….

      When the big blast comes gold shares become a call on the only gold left–in the ground…..

    Jan 25, 2014 25:39 PM

    I never know about the stock market. Temporary blip? Part of a long-term decline? All I know is that it’s not where I want to be right now.

      Jan 26, 2014 26:00 PM

      And that, Matt R, is two of us.

    Jan 25, 2014 25:08 PM

    Fridays action was telling us that a large decline in the stock market was pulling down our
    Precious metals…silver declined…Platinum was hit hard…mining shares got clipped.

    300 point decline is not a big deal either. A real crash would cause some serious damage
    to our precious metals and mining especially.

      Jan 25, 2014 25:46 PM

      I wouldn’t read too much into the miner’s decline on Friday. They were due for a pullback after the run they just had. Most were overbought yet selling remained unenthusiastic even while the Dow plunged. Volume was low for many of the ones I follow. Juniors and seniors both bounced very nicely off of their lows for the day and gold closed higher. Most miners finished the week higher while the Dow lost 579 points. In addition, eleven of my juniors are now above their 200 day moving average. Even if conventional stocks had not had a rough week, there would still be nothing ominous about the action in the miners.

        Jan 26, 2014 26:14 AM

        Absolutely I do agree but a crashing stock market is not a market I want to own mining shares. Really depends on the timing of a crash. If the miners have appreciated 30 percent
        down the road and the crash hits they too will be sold off. Right now a crash hits they may
        initially drop and recover very quickly into a huge rally. IMVHO

    Jan 25, 2014 25:25 PM

    We are going to track the global reset story on our blog as it unfolds, regardless of whether its this year or still years away. We will track it here:
    http://lonestarwhitehouse.blogspot.com/

      Jan 26, 2014 26:02 PM

      It is all relative Heavy. I thought that Friday was really disastrous and a major wake up call.

    Jan 25, 2014 25:34 PM
    Jan 25, 2014 25:56 PM

    321GOLD….Morris Hubbert has excellent analysis on metals and the miners.

    The FED may not allow a stock crash but if forces overwhelm the PPT …Bob seems
    to think this is it. So if it is that would may include a crash. I surely don’t want to own mining shares in that market environment.

    Morris Hubbert nails it though as long as we don’t go into that free fall market.

    INVHO gonna ride the miners until the fat lady sings I guess

    Tom
    Jan 26, 2014 26:51 AM

    So when is Germany going to park a ship in a USA port and say…Put my gold in now!

      Jan 26, 2014 26:07 PM

      Never!

    Jan 26, 2014 26:39 AM

    The reason the Banks and Brokerage houses appear to have hung themselves out on a limb is because they have deals with Governments to use taxpayer dollars to bail them out when the bill comes due. Its Win, win for them. Everyone knows something doesn’t add up but we cant catch the bastards with the smoking gun. Its time to clean these nest of thieves out and put them where they belong, in the darkest prison on the planet. If we don’t, in the end they will leave us with nothing and they will have all the wealth.

      Jan 26, 2014 26:08 PM

      Agreed Major.

      I really never understood why so many were unaccountable!

      Makes absolutely no moral sense!

    Jan 26, 2014 26:44 AM

    Speak about it all being connected. Completely unknown to this area we had a ‘perfect storm’ alongside our local golf course. Spoke to a golfer who’d been on the course yesterday when it happened, and who came to view the damage today. Trees thrown up, some sheered off at the trunk, others clearly had flown in from someplace else. The guy in question said he and his partner had to throw themselves to the ground even if it was all over in 20 seconds.

    But this sort of thing is a complete unknown in our neck of the woods.

      Jan 26, 2014 26:08 PM

      Pretty glad I wasn’t there, Reverend!

    Jan 26, 2014 26:58 AM

    REGARDING HARRY DENT

    The guy is going to be right …who is going to buy all these homes now with a aging population and Shiller has recently said Wall Street…hedge funds have most all these
    Properties rented…if we get a liquidity crisis there will be so many homes for sale and
    no bids. Prices will drop like we have never seen before.

    The surprise that most people did not expect incl. Harry is the huge printing central banks
    did. Also no one expected them to drive gold down while this was going on. I stayed out
    because I knew thats what the central planners do. Here we are and they could do some
    more damage but unless we get a huge liquidity crisis they could use that to drive it down
    to under a 1000.

    DO NOT BECOME COMPLACENT BECAUSE THATS EXACTLY WHAT THEY MIGHT DO AND
    WELCOME A BLACK SWAN EVENT. They are desperate.

    Although I think they may use it to their own advantage as the elite will profit greatly in the
    Event of a exploding gold price.

    I THINK ONE NEEDS TO BE VERY WATCHFUL….stay the course without selling anything if it
    All possible and do not dismiss physical gold..silver…a really sound bet is to not have all
    the eggs in miners. Something that I don’t like diversifying but seems with the times may not
    have a choice. Staying the course with all miners for now but first sign of trouble may be forced to buy physical.

      Dan
      Jan 26, 2014 26:22 AM

      Have you been to Vancouver or better known as Hongcouver? I use to love that city. It’s a big gang I festered overpriced piece of crap now. There’s a coue billion people in Aisa and they are buy in the US and that my take up some slack on the housing. I had to move out of Van.

        Jan 26, 2014 26:31 PM

        In real estate the last ones to buy is the foreigners. We have maybe one more year and then
        WATCH OUT !

        Its all in a very big bubble now and here in the US and around the world.

        Of coarse this time could be different. Currencies are all worthless. However, interest rates
        must rise and the party will come to a very ugly end. NO BIDS

        Jan 26, 2014 26:12 PM

        Real simple for me, Dan. We cannot afford to live there in anything like we have here, just 50 minutes south.

        The Asian folks (and I have nothing against them) are doing your former city absolutely no good as far as real estate is concerned.

        Funny the Canadian govt let them in as long as they had roughly $200K and the U.S. govt is letting the Latinos in with no money and no means of support.

        Go figure!

    Jan 26, 2014 26:03 AM

    @Tom (“So when is Germany going to park a ship in a USA port and say…Put my gold in now!)- now they know what it feels like being powerless- even Venezuela in chaos at least had a trump card in oil to get their gold back

    Jan 26, 2014 26:04 AM

    Let’s not all start celebrating just yet. We’ve only had one week of declines. The odds seem to favour a 5-20% correction within an ongoing equity bull market.

    There could be a black swan event, which could arrive tomorrow or next year. But how can you prepare for it? Sell everything and run for the hills? Or stay invested in equities which have performed handsomely over the last 5 years whilst the doom-mongers were forever expecting an imminent crash.

      Dan
      Jan 26, 2014 26:13 PM

      I agree the doomer’s have been preaching doom for years and years and years.
      If you sat in the resource sector you have lost far more than staying in the stock market. Some resource stocks are down 90%. Bob M is a hi stakes gambler. You can make a big buck or lose. Silver needs to outperform gold for a real bull market and it is not.

        Jan 26, 2014 26:33 PM

        The economy peaked in the late ’90s and the secular bull market in stocks ended in 2000. Anyone who moved into gold bullion at that time is STILL up 300-400%. Those that stayed with stocks are up about 30%. Those who bought the senior miners anytime in 2000 are STILL up 300-500%. Those who sold the seniors anytime in 2011 could have had 1200% gains or more. Countless juniors performed far better. Goldcorp is still up 900% from its 2000 lows.
        The $CDNX has broken out of its 2 year downtrend. $CDNX:$GOLD is breaking out of its nearly 7 year downtrend. Resource stocks are about to shock a lot of people.

        Jan 26, 2014 26:14 PM

        Not so far, Dan!

      Jan 26, 2014 26:14 PM

      karl345345,

      You are describing our diversification policy. Thank you.

    Jan 26, 2014 26:12 AM

    Even if there is a stock crash in which commodoties will be crushed also, equities always tend to come back eventually. Hence, have a diversified portfolio is sensible. Not 100% PM’s as some gold bugs are!

    http://solarcycles.net/2014/01/26/stock-market-crash-probable/

      Jan 26, 2014 26:59 AM

      Right now China has cornered the gold market buying physical not papeexplode.dts of reading today on the state of whats really transpiring currently.

      Equities will probably come back but gold is explosive and equities moving up in my view is very positive for gold especially the miners. I see a possible crack up boom for a year.

      THEN THE BOTTOM FALLS OUT…….the story will be told in what happens in the weeks ahead.

      As of today wth my D & D gold is a rare opportunity along with staying long the miners.

      Until such time conditions change. So 100 percent long the miners will be the most profitable. If the miners start to peter on gold rallies will be time to go physical.

      WATCHFUL IS THE ORDER OF THE DAY.

      Gold has a real potential and opportunity to double in less than a year or sooner.

      QE will keep going as the FED has no choice. Looks likely per Jim Willy.

      On Jan. 31 if they don’t taper gold is going to explode. China has cornered
      the market anyway and it will eventually explode.

      GOLD TO …….DA MOOOOON …..HI HOOOOOOOOO……SILVER……

      This is a real explosive market ……ITS REAL….NO LIES HERE.

      GOLD AND SILVER WILL EXPLODE IN THE MONTHS AHEAD.

      our trojan horse…CHINA……..will make sure of it.

      Jan 26, 2014 26:15 PM

      And thank you again karl345345!

    Jan 26, 2014 26:03 PM

    Excuse the typo in my first sentence. Explode and dts. should not be there.

    China has bought physical not paper gold.

      Jan 26, 2014 26:16 PM

      Thanks Heavy, I was wondering just what you meant!

    Jan 26, 2014 26:15 PM

    Bob M, has a lot of respect on this site because he is honest and he speaks his mind, that is a rarity these days. DT

      Jan 26, 2014 26:17 PM

      Yes it is Machine Gun and that is why I value his friendship!

    Jan 26, 2014 26:02 PM

    Gold is going vertical at the time of this posting.

    CHINA IS THE TROJAN HORSE….

    Some serious fireworks in the gold pits coming very soon.

    2000 gold with China cornering the market could come very quick. NO JOKE EITHER

    The negative nellies are going to be left out and those who are brainwsshed thinking
    Gold will struggle. THE FED IS GOING TO LOSE THIS BATTLE.

    Its an explosion in gold coming.

    JUST LIKE …..POSTER ..ANOTHER …said 15 yesrs ago on the old Kitco forum. OK ….

    You have the scoffers out there who don’t know….JACK….ABOUT WHAT REALLY IS GOING
    TO HAPPEN……….$10,000 GOLD…..YOU BET……..the dynamics are there.

    Gold bears are going to crap their pants and those that keep pounding the table with bear BULLCRAP……

    OK ! ! !

      Jan 26, 2014 26:18 PM

      Be careful Heavy. The fat lady is not done singing yet!

    Jan 26, 2014 26:10 PM

    And ….ONE MORE THING

    GOLD IS GOING TO SURPRISE EVERYONE…….not to be traded.

    DO NOT SELL……$5000 EASY FOR GOLD

    Reason why I don’t like posting on here I get nausea from all the BULL CRAP ,

    Get focused on at least 2000 gold. MINIMUM for now anyway.

    Jan 26, 2014 26:00 PM

    Many people are getting excited and starting to pop the champagne cork.

    Until gold takes out $1340 as I’ve said repeatedly it is still in a bear market.

      Jan 26, 2014 26:05 PM

      Sure and you’ll be saying now it must take out so and so.

      WHAT ARE YOU DOING ON HERE.

      The gold market has been cornered by China…..

      Now get long gold……buy…buy…buy….5000 an oz…….easy

      Jan 26, 2014 26:18 PM

      Thanks for the restraint, The Greater.

    Jan 26, 2014 26:02 PM

    Ackerman has been a gold bear and general equities bear his whole life.
    He missed it on stocks and now gold. WTF

    Savage makes his call on gold and fails to buy. WTF

    Then Mr. Birdman ….mister know it all. All those who think they know it all …know..JACK !

    ALL DISINFORMATION……Or James……bet on horses……

    WHAT A BUNCH OF…..BULLCRAP !

    Can’t make any money with these types on here. END UP HOMELESS

      Jan 26, 2014 26:20 PM

      Oh I have to disagree, Heavy. There is a little truth in some and a lot of truth in others. If you read it all and then think about it, you will have a great insurance policy!

        Jan 26, 2014 26:27 PM

        Ya BIG HONORABLE AL………forget the insurance policy

        YOU NEED A KILLER ATTITUDE…like Donald Trump says

        And a lot of guts and money. BE A SUPER CONTRARIAN…lots of patience

        Most important help those in need.

      Jan 27, 2014 27:47 AM

      Thanks for making me laugh, Heavy!

    Jan 26, 2014 26:21 PM

    As a point of interest, the vertical move in gold is now (5:32 pst) reversed.

    Stay sensible for now friends!

      Jan 26, 2014 26:33 PM

      Now…Al

      DON’T WORRY……..BE HAPPY….come on …sing it

      Gold is going to explode……CHINA….AL…….THATS OUR TROJAN HORSE

      The western bullcrap is ending……..China is seeing to it.

      BUY…BUY…BUY………no time to be faint…..

      WHAT TIME IS IT………YOU BE A….SUPER GOLD BULL…MAN

      knock your socks off

    Jan 26, 2014 26:28 PM

    Back to vertical….6.25 pst

    YOU CAN’T KEEP GOLD DOWN

    no way….5000 gold coming

    Dan
    Jan 27, 2014 27:18 AM

    Bob M has been dead wrong for sometime. He had predicted many things that have fallen short. He had been talking the global economy blowing up for years. So what did the Dow do the last 5 yrs? And everyone was scared to buy it. Way last May he predicted 100% returns in gold stocks in a couple months then 1000% within a year. May 2014 is closing in and all we have is a couple dead cat bounces. He wrote a piece at the AU Report a few years ago TRIPLE DIGIT GAINS. It should have been TRIPLE DIGIT LOSSES.
    I’m just pointing out facts. Safety first this market s the most volition and dangerous on earth so you better be an absolute expert.

      Jan 27, 2014 27:49 AM

      I have many juniors that are up 100-200% since their 2013 lows. The pullback in the miners today is a buying opportunity in my opinion. Whatever the Dow does this year, the miners are the place to be.

        Dan
        Jan 27, 2014 27:19 AM

        You may be right. It is the most hated discounted sector. There is some excellent base building going on in a few stocks.

        Dan
        Jan 27, 2014 27:37 AM

        Matthew. You must be good. 1 in 100 juniors may be up that much. It is no measure for a market as a whole. The crash is commencing now!

          Jan 27, 2014 27:19 PM

          Here’s four (three of which I mentioned many months ago):
          TGM.V .21-.485 now .47; TYP.V .06-.21 now .16; NOX.V .055-.23 now .19; BYV.V .135-.41 now .35
          Many others have offered a double or more, even if they are not still at a double today. GSV; IPT.V; AXU; and CRJ.TO are a few. So many are priced like they are going to go off the board. There are incredible opportunities for speculators, but these juniors are no good for price-chasers who have no conviction or those who do not understand the risks.

            Dan
            Jan 27, 2014 27:27 PM

            Nice! Your a Pennie player….I have to invest in large liquid stocks or Ill make them move. $20k to $50k per purchase is hard. I’m in a hole other story….
            AEM, ANV, NG, CG for me.
            I have to get back to real estate. Dealing with this is a ######## headache.
            Should have stayed out when I sold in 2011.
            Cheers

            Jan 27, 2014 27:18 PM

            If you buy when no one wants them, putting $20-50K in each of the above is no problem.

            Dan
            Jan 28, 2014 28:12 AM

            Or you may never see your money again.

            Jan 28, 2014 28:49 AM

            Perceived risk is much higher than actual risk if you know how to assess these stocks. Conversely, actual risk in the bigger stuff is usually greater than perceived risk. Take a look at CSI.TO, it went from $9+ two years ago to 4 cents today. There’s a reason that insiders are far more likely to hold a large percentage of $5M companies’ shares than $500M ones. I have yet to get stuck with worthless shares (knock on wood).
            In addition, you can risk far less capital in the tiny miners to get the same return that the bigger ones might offer.
            I have no use for big miners, I would rather just buy more silver or gold than those things. However, options and warrants on the bigger miners DO interest me. My best performance of the last two years came from warrants on P.TO, I scooped up plenty in the .20s just before they shot to the $1.90s in just months (the underlying shares “just” tripled). Franco Nevada warrants have been great too.

    Dan
    Jan 27, 2014 27:51 AM

    PS that said he is the BEST contraction out there. He just missed calling the worst bear market in history!!

    Dan
    Jan 27, 2014 27:22 AM

    LOL I just saw that “contraction” = contrarian. Silly little hand set. AND Spell check. Next thing will be telling me what. I should type!

    Dan
    Jan 27, 2014 27:03 AM
    Jan 27, 2014 27:16 PM

    Buying miners does make sense imho, given that they have been down for over two years. They should bottom out by sept at the latest. As for gold, the $1180 double bottom is just too neat. Epic bear markets don’t end with a whimper, but a gut wrenching capitulation spasm to the downside.

    The same goes for epic bull markets…..which the Dow may be in.