Some hope for the New Year

December 27, 2014

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    Dec 27, 2014 27:02 AM

    I have a question for Mr. Temple. Chris is very bearish about China and thinking Chinese economy will crash. However, he is bullish on gold. The problem is that if Chinese economy crashes, it will take Chinese demands with it. I know Chinese buy gold more for wealth accumulation and show off not for protection. Chinese gold demand is now equals to 70-80% world mine production. A poorer China and crashing yuan will definitely reduce the demand for gold. So if you are bearish on China, you should be bearish on gold, not the other way around.

      Dec 27, 2014 27:52 AM

      I am not particularly bearish on China, Lawrence!

      Dec 28, 2014 28:51 AM

      Allow me to clarify, Lawrence. I have indeed often expressed the concern that China — which in some ways is even more overextended with unsustainable debt than is the U.S. — could at some point find it impossible to keep all the balls in the air. What I have also pointed out is that China has a built-in, systemic advantage over the U.S. and virtually everyone else as it tries to do so.
      That is — unlike here for instance, where the banking system runs everything and the government must live with and/or occasionally react to things — in China, it’s the opposite. The Peoples Bank of China is an appendage of the central government, and answerable to it. If the government, say, decides to simply by edict roll over or otherwise make “good” bad debts, it can do so; more seamlessly than the U.S. and others. Indeed, China has been doing a fair amount of that for a while, according to most reports.
      I have little doubt that, perhaps a generation from now, China’s stature on the world stage will be more considerable still than it has become in the last dozen or so years. What happens between now and then is anyone’s guess. I am one will continue to wonder aloud about China’s ability to escape a debt crisis (though one thing in their favor, I believe by design, is their recent moves to greatly open up their stock and other capital markets to outside investment. This could well enable them to “cover” many of the past excesses by having foreign capital add to the liquidity, etc.)
      As to your gold question, one would have to identify what gold demand it is that would be suffering. Your point is a good one. If there indeed was a crisis in China, would a plunging economy/yuan cause NET selling of gold as people need to get liquid…or would gold benefit as other assets are fled, and folks see that one of their only ways to preserve buying power — especially if the yuan were falling simultaneously — is to buy gold. In 2010 when the euro was having an existential crisis and stocks and bonds in Europe were being sold off, gold benefited; a big reason why gold rose at the same time the U.S. dollar did.
      A greater threat would be if for some reason public sector gold in China had to be sold for some reason; that would be a game changer. I can’t predict that one way or another, though to me this is perhaps the greatest threat to gold going forward, if this chief source of demand for the last several years were to get hit. Because I agree that the world could well see diminished “luxury” demand for gold if things do get worse.
      In the end, this is why investors in gold — and especially gold mining shares — should NOT be rooting for a crash, but instead for a global benign/inflationary environment where everything stays afloat and inflates over time, even if it means that a generation from now we’ll have added ANOTHER zero to the prices of everything.

        Dec 28, 2014 28:39 AM

        I think a bear market in stocks would be the best scenario for the gold miners at this time. Between 2000 and 2002, the S&P dropped about 50% while the HUI went up about 330%. From 2002 to 2007, the two sectors went up together.
        Even a crash might not deliver the carnage some expect. In 2007-2008, everything was hitting record highs while the dollar was hitting a record low. Today, stocks are at record highs while the dollar is the most overbought it has been in 170 months (14+ years). Gold and the gold miners, on the other hand, have never been so oversold (and hated).

          Dec 28, 2014 28:20 AM

          Could be, Matthew…big difference between now and 2008 RE: gold is there isn’t a lot of leveraged money in gold, prompted by cheap dollar carry trades. There would likely be no forced gold selling this time around; and it would thus be more likely to attract money than drive it away.

        Dec 29, 2014 29:00 AM

        Chris, thank you for your detailed answer. I agree exactly with you that we should not base our investment on a global crash scenario. Inflation and growth is a lot better and likely to happen.

        As for why Chinese population desire gold, I can summarize it up. It is the insatiable demand for wealth possession by Chinese women which results in demand for luxury items. If they buy bullion, the possession is shared among the couple and it is hard to show off. If they buy jewelry, women will own it if they end up in divorce. At same time, women like to compare to their friends. More luxury stuff you have, you get more admiration and jealousy. Women treat their husbands and kids as trophies. They push their men and kids to the limit. Especially due to the imbalance of girls and boys, ladies have more upper hand in the relationship. So buying luxury items is a way to give one’s wife or girl friend assurance that he is rich. Last year, I went to the Cai Sikou department store, which is the largest jewelry store and billion dealer. The counters for jewelery were packed. I could not force myself in. However, the counter for bullion only had a couple of customers. And the jewelry counters are many times larger.

        I am sure that US is by far more over-extended in debt. It actually owe more than half of the world total debt. Chinese government from central to local governments have over 20 trillion yuan of debt, which is slightly more than $3 trillions. However it has nearly $4 trillion foreign reserve. On the other hand, people are famous for savings so the net debt among private citizen is much less than savings. The debt are concentrated in corporate debt including builders owing to the banks. I haven’t seen any stats for this debt. However I am sure the landing standard is very tight since 2007. I have a friend here used to send money back to China to participate in private fund for high interest landing where corporation pays 18% per year to borrow the money. If the landing standards are loose, I cannot see why corporation borrow from loan sharks. Chinese government has deliberately keeping the credit chain to the breaking point to starve off bubble and as a way to fish for corruption. It only loose up when they see serious stress. Only exception is 2009 when government printed money to build infrastructure in an attempt to not being dragged down by world financial crisis. It resulted in bad inflation and it seems that government is not willing to do it again for fearing people’s revolt. Chinese people is very hostile to the government and civil disobedience is widespread.

        I feel there are several drivers for continuous growth in Chinese economy:

        1. China is transforming from agrarian economy to industrial economy. This process takes a long time. There are still a lot of places with great potential.

        2. The desire to get rich is extremely high. If a man does not have a good income, he will not get a wife. Rich ones sometime get secret wives if he desire.

        3. The economy is more mature and the supply chain is more and more complete. So it becomes easier to produce final products. There are reports that some large international companies move production to China because they can avoid shipping components from various places from the world and unnecessary delay.

        I remember that you was talking that China may have spent $6.5 trillion to build bridge to nowhere and empty cities. This is why I thought you are bearish in China. It is a wrong statement. I go to China very often and I have never seen anything which have been built but not used.

        However, my worry for China is for the long term. It needs to change the political system to make the power more balanced. It might become the bottleneck in the future development.

    Dec 27, 2014 27:12 AM

    Bring back Bo Polny! Only three more trading days for gold to reach $2,000. Will my $2,000 strike price options expire worthless? Has anyone EVER taken a tally of all the prognostications?

      Dec 27, 2014 27:32 AM

      This is actually a possible website idea Tracking the prognosticators.

        Dec 27, 2014 27:53 AM

        Are you planning on doing that, Brian?

      Dec 27, 2014 27:53 AM

      Tell me why we should bring him back, Mr Chew.

        Dec 27, 2014 27:08 PM

        Dear Big Al:

        First, because when you introduced him, you mentioned having him on again–I assume regardless of the outcome of his predictions.

        Secondly, his prediction fizzled, therefore, what did HE learn and how did his lessons help his subscribers.

        Thirdly, has BO ever bothered to statistically test his cycle work? If not, why not?

        fourth, why would you NOT bring him back? Huge entertainment value.

        Fifth, though his predictions fell flat they are no worse than 50%/50% or just as good as your team of Doc, Gary, etc. random guessing and feeling not backed up with fundamental analysis or sentiment work. Not a complaint, just an observation.

          Dec 27, 2014 27:56 PM


          Here is the deal.

          Bo charges some five figure amount for his newsletter. I am not interested in someone who is that wrong consistently, who appears to be bilking people and who seems to be simply a good marketer.

          Just my thoughts.

            Dec 27, 2014 27:23 PM

            OK, I understand your point of view. You have to admit, his interview on your show was a riot–funny. I am just fascinated by the psychology of the prediction business. Since no one has ever been able to predict the future with accuracy, it is amazing that people would ever pay someone thinking that they could predict anything other than coin flipping. .

            Since the dawn of time no one has ever been able to CONSISTENTLY–with a LARGE SAMPLE size–predict both price and time.

            Happy New Year!

            Dec 27, 2014 27:08 PM

            So why bother listening to anyone about any kind of investing then John? Why bother with technicals or timing methods or market history? Hell, why even invest? If its all just a 50/50 crap shoot maybe Macao would suit you better.

            Dec 29, 2014 29:52 AM

            Not that I am sticking up for Polny, I am not due to such a horrible call. I really hope he did not suck in too many people. If you look back on the last several weeks one this site, the “experts” are continually making bad calls. Not too long ago was the intermediate cycle bottom in gold and to buy the miners because in 3 months it won’t matter where you bought them they will be higher. Pretty bold statements that were wrong. Also the perpetual another 2-3 weeks which became December which became January. A few weeks ago was an outright bottom and that they were buying. How are those not wrong calls? The only difference between them and Bo is that when the call went against them they were on here the next day saying they had changed their mind and now we are looking at the spring again. My point is they constantly made calls that are wrong they are just on the next day saying it was negated and somehow that call is no longer wrong. If Bo Polny was on the next day or week saying his $2400 call was negated would that somehow clear the history that he made the statement? Please correct me if I am wrong but go back in the last few weeks and either listen or read.

            Dec 29, 2014 29:57 AM

            You are talking complete apples and oranges and we will be happy to explain that in an upcoming Editorial.

            Dec 29, 2014 29:52 AM

            How about if I go back a year, Veej? Back in the start of January 2014 Rick Ackerman made his call on the Dow targeting 17,622 for year end. Currently we stand at 17,987 which means we exceeded his target set 12 months back by a mere 365 Dow points. From where I stand that is pretty damned good and he was far closer than most of the big banks in his estimates. Secondly he was quite bullish USD which turned out to be a very prescient (and profitable) call for those who heeded it while he was near recommending bonds depending on their next turn. That turn came days later and bonds rallied throughout the year. Listen to the shows for yourself…they are segments 5, 6, 7 and 8 of January 4, 2014.

            Here is segment 8 of the series— Economic and social predictions for 2014

            Dec 30, 2014 30:49 AM

            Thanks Bird and yes that was a great call, especially when you listen to his reasoning today. The “others” , not so much in my view. Far to much waffling and flip flopping. Go back to Dec 2nd for one example of many and no one seems to ever mention anything. It seems to be happening all the time in the last few months. They seem to get all these free passes because the conditions changed. Well did they make a call or not? If you make an impassioned call one day to buy and say that in 3 months it wont matter where you bought then a week later change your mind because the conditions changed well that was a wrong call no matter how you look at it. I agree with another poster (John Chew?) There should be a running score card. At the same time I appreciate that no one can be accurate all the time, even 70% is very good. I’m just seeing all these calls being made and then changed a week or two or three or four later (sound familiar) and no one ever says they were wrong. There is no accountability.

            Dec 30, 2014 30:11 PM

            Hi Veej,

            Accountability is now starting.

          Dec 28, 2014 28:24 AM

          Your post is wrong on so many counts John. There are a great number of talented people who regularly predict the trend of the market. We have five on this site who do it all the time. It is not necessary to get both timing and price right together in any case but only to get the direction and then be able to reasonably estimate the magnitude. Every single person I have known who took investing seriously, learned the craft and managed risk with competence has made money. A lot of money in many cases. I don’t consider it a gamble at all although there are certainly days when the best looking bets go sour. Most serious traders would agree with that sentiment. If you really believe the calls are 50/50 you probably don’t listen in very closely or you are part of the crowd who has no idea what drives markets and probably cannot be bothered to take the time to figure it out. Just my guess.

            Dec 28, 2014 28:29 AM

            Dear Birdman:

            Actually, I misstated. Experts are often WORSE than 50%/50% (

            So I look for a unanimity of opinion by pundits to go contrary to their predictions. Look at the certainty a year ago about long-term interest rates by the “experts.” Interest rates were going to rise. The key is to know that you don’t know and neither does anyone else. IF the folks on CNBC and their guest ACTUALLY KNEW–why would they be stupid enough to TELL others? You have to separate important information from ENTERTAINMENT. This site is mostly for entertainment. I mean that as a compliment. What is wrong with that? Look at the range on this site–from Austrian money manager, Dan Oliver, to Voo-Doo priest Bo Polny. I love the variety of important information (REAL PRICE OF GOLD IS RISING) and hilarity.

            I also believe the law of supply demand will ultimately change price.

            I can’t say if technical analysis “works” or not since there has NEVER been any scientific or statistical evidence that it “works.” An example would be the pundits on this site. Take Gary: If price breaks above XX then the trend is up, but if the price drops below XX, then the trend is down. Great, but pretty much useless to use for profit. Let me try: If gold drops below $1,170 then expect a test of $1,130. Breaking those lows will lead the mega-panic selling to $1,000. $1,000 is a given since Goldman says so!

            Now if Gold breaks above $1,205, then expect a test of $1,245. A rally above $1,950 would resume the major trend. Not bad?

            Dec 28, 2014 28:46 AM

            Published on Sep 13, 2013

            Join us at an upcoming event!

            Billionaire Eric Sprott backs up his prediction that gold will hit $2400 by next summer

            Guess Eric Sprott is out of the question around here too, and maybe the guys that work with him. lol, Just thought it was funny, he and Bo were probly getting along pretty well. lol

            Dec 28, 2014 28:18 AM

            In fact, you can learn from Eric Sprott’s predictions. Gold will soar because physical demand from China is through the roof as gold moves from West to East. That statement is nonsense. Demand always equal to supply. So Supply was massive (too!).

            If tomorrow I wanted to sell 200,000 tonnes of gold or more than the world’s supply I guarantee that demand would rise but WHERE is the clearing price? Either Mr. Sprott is ignorant of supply demand or he is tooting his position by leaving out half the argument.

            Dec 28, 2014 28:05 PM

            John, I was attempting to pointing out, the highly touted and respected Mr Sprott and group John Embry etc where making the same prediction as Bo Polny, who is “booted” from the site.
            I have for years now repeated that Mr Sprott has repeatedly stated he doesn’t know where gold/silver supplies to meet the huge demand is coming from.
            I think that is rather telling.

            In any case, Bird is obviously correct that there are people that “win” consistently using “technical” tools, and you are also correct, experts are actually not as good as layman with predictions, at least I have read articles explaining as much.

            For me, the markets are a gamble, due to a few things, we don’t know if the brokers are going to go broke, if they do, and steel all accounts, there is no repercussion, (mf global) we don’t know if/when the banks take our cash (bail ins) written into law now, there are no free markets, only interventions etc etc etc
            our entire system could shut down on us.

            On the other hand, the kenysians could be right and debt doesn’t matter, funny tho that believers in gold would think that.

            Just out of interest, Jim Rogers thinking is he wont buy gold until it goes below 1000, not a prediction and he isn’t selling either.
            But under 1000, he intends to buy lots.

            Anyway, I agree with your points.

            Dec 28, 2014 28:36 PM

            I get what you are saying John. I have seen similar articles. There are many other pieces of news, research and polls of a similar vein that are equally damning and prove most people are making mistakes. That includes professionals, Hedges, experts and the retail crowd.

            For example the AAII survey of investor sentiments (dumb money) tell us in terms of trends what we should not be doing. In other words, as an aggregate number, retail investors are herd followers and usually get caught buying at tops and selling at bottoms. We learn therefore that “on average” it pays to do the opposite of that group.

            But what about Hedge Funds? The annual roundup of performance results for the group are often dismal to the extent they can’t even beat the S&P even when it has been rising consistently and fairly uniformly for 6 or 7 years.

            Other statistics tell us that the majority of private stock pickers also get beaten. I have seen numbers in excess of 75% of them not being able to win at part time investing. It is the small minority that succeed from that group.

            So if stock pickers are losing, if professionals like Hedgies are barely treading water and if newsletters, TV experts and subscription services are typically failing to beat the markets 50% of the time then what are we really being told?

            The picture being created is that investing is the most hazardous of occupations. You can be utterly wiped out to zero. If the Pros can’t make it then how the hell can an average Joe think he can beat the odds?

            All of this bothers me. I really hate reading those kinds of surveys. They are put together by losers in my opinion and people who want to create the appearance that markets are only there to skim from the crowd. By design, these kinds of articles are written to herd the crowds into buying Mutual Funds or hiring the services of the banks and professional outfits.

            Because we all know from the data we can’t do it alone. Apparently we are not smart enough.

            If this kind of information being presented was the propaganda fodder in a war against our minds then most people would be beaten even before they began. The statistics and the averages are telling us we cannot win for trying.

            From a psychological standpoint we are already being programmed that we are losers at the game of investing unless we are really talented, very lucky or rich enough to lose a mountain of money and still not go under.

            It stinks to all high hell. I think we need to take the statistics with a big dose of salt to begin with. There are indeed professional traders who make a decent living. Some are turning in stellar results on a regular basis. Most work very hard to learn the business, often devoting all of their available hours to following the charts, policy changes and ups and downs of the markets.

            This is no business for lazy people that is for sure. It takes a thick skin and an ability to not get beaten down by social pressure or the persistent and endless negativity of others nor to allow yourself to stew over personal losses and permit yourself to engage in self defeating behaviors after making a mistake.

            There is already enough people out there who will happily criticize us! Why add to it? So while I appreciate your link to that article you should also know I am not buying it. We do not live our lives by averages. We do not trade by averages of the population either.

            I guess we need to start by stripping out the noise and confusion and paying more attention to that group who are consistent in their approach and have both a good sense of intuition and an ability to quickly size up how changes impact other parts of the market.

            I guess I just hate averages. The laggards make the performers look stupid in such terms and don’t offer us any sense of hopefulness or optimism where investing is concerned. Averages are not therefore meaningful where performance is concerned and they diminish the great work that many of the veterans are turning out.

            And anyway, don’t we already know the herd is typically wrong? That’s why we are wasting our time measuring against what the collective is doing.

            Dec 29, 2014 29:14 AM

            I dissagree. There are plenty of wrong calls on this site from the experts quite regularly. Just look back a few weeks. Its 50/50 at best.

            Dec 29, 2014 29:53 AM

            I would not agree with the 50/50 at best comment from you. But I do stress that our folks give it their best and admit when they are wrong.

    Dec 27, 2014 27:17 AM

    Santa Cruz AISC:
    all-in sustaining cash costs of $23.68 per silver equivalent ounce

      Dec 27, 2014 27:17 AM


        Dec 27, 2014 27:33 AM

        Shut down time…or bankruptcy awaits.

          Dec 27, 2014 27:02 PM


          Dec 27, 2014 27:07 PM

          Birdman Way (AL) block and deleted Franky ?

            Dec 27, 2014 27:30 PM

            Sorry to hear about the block Franky. I guess Al has run out of patience. I can cheer you up a little with a video though. Maybe you already saw this one…or maybe not. It totally cracked me up though. It is a video expressing the exasperation some people feel about golds performance these last years. And it handily takes a rib shot at the technical guys! Good laughs Franky!

            The Vomiting Camel Pattern (VCP) leading to the Big Splat (BS)…… from CNBC

      Dec 27, 2014 27:14 AM


      Dec 27, 2014 27:28 AM

      For most if not all primary silver mines, silver is only a by-product. The main product is hot air. It has been the case for many years other than a few good years.

      Dec 27, 2014 27:55 AM

      We are going to be looking into that Matt.

    Dec 27, 2014 27:29 AM

    Will this be ignored in the phony paper gold market?
    China To Launch Yuan Swap Trading With Russian Rubles On Monday
    The world was slow to wake up to the new reality in which China is now the de facto IMF sovereign backstop, as Zero Hedge described two weeks ago in “China Prepares To Bailout Russia” when we noted that a PBOC swap-line was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze, something we first noted over two months ago in “China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin.”

    In fact, it was only this week that Bloomberg reported that “China Offers Russia Help With Currency Swap Suggestion.” But in order to fully backstop Russia away from a SWIFT-world in which the dollar reigns supreme, one extra step was necessary: the launching of direct FX trade involving the Russian and Chinese currencies, either spot or forward – a move away from purely theoretical bilateral FX trade agreements – which would not only enable and make direct currency trading more efficient by sidestepping the dollar entirely, but also allow Russian companies to budget in Chinese Yuan terms. It is no surprise then that this is precisely the missing step that was announced overnight, and will be implemented starting Monday.

      Dec 27, 2014 27:39 AM

      Russia and China complement each other economically. Their alliance make sanction again either or both of them very difficult. So I think the original designed low oil price may actually hurt US shale instead. Russia will come out scared but unharmed. China might be the biggest beneficiary. We may see the oil price go up soon. I read an article saying that some strategists suggested NATO to work with Russia to isolate China. Unfortunately Wall Street see this as a good money making ploy.

        Dec 27, 2014 27:56 AM

        Why can’t everyone just work together with for the good of all, Lawrence?

    Dec 27, 2014 27:43 AM

    Thanks for the post Markedtofuture. By rights Monday’s development should provide a massive boost for PMs. But by now as we all know nobody seems to notice and nobody seems to care. Only means that when the undeniable day of reckoning comes. lift-off will be that much more spectacular. the Best, A

      Dec 27, 2014 27:43 AM

      I feel people are always driven by price instead of fundamentals. I notice the commentators even create fundamental reasons to support the price movemen.

        Dec 27, 2014 27:58 AM

        Often that is the case, Lawrence and that is a real shame!

    Dec 27, 2014 27:55 AM

    Cory, Exeter’s ‘a company not going anywhere’ (Seg 5 – 9 mins) sounds a mite ambiguous although it’s clear that both you and Al remain remain enthusiastic investors! Trust this was no more than a Freudian slip!! Best, A

      Dec 27, 2014 27:50 AM

      Isn’t Yale Cory’s dad?

        Dec 27, 2014 27:53 AM

        Or step dad?

        Dec 27, 2014 27:58 AM

        Actually his stepfather.

      Dec 27, 2014 27:00 AM

      At these prices I l like it. It has a serious management team and a huge property. Notice I said, “at these prices”.

    Dec 27, 2014 27:02 AM

    Like the song say’s “The Best Things In Life Are Free.” You don’t need to own a car, if you want you can move to a place like Compton California, or Detroit Michigan, or Toronto Canada, and walk to work, no more gridlock. You don’t need to own a cell phone just interact with others and not electrical devices. You don’t need to go to college to get an education only to become saddled with debt and jobless, some of the most educated people in the world are self taught and libraries are universal. Life as we all know is about choices and the life boomers sought doesn’t apply to the new generation but the choices are still there for all to make.

      Dec 27, 2014 27:33 AM

      We are right on the line with the Canadian dollar, DT. If this does not hold we are heading to 85 on our way to 77….but I have a sneaking suspicion for the first quarter we will see a bounce and that should coincide with a rise in the PM’s and some relief for the struggling miners.

        Dec 27, 2014 27:59 AM

        Bird, I have also been watching The Aussie dollar tank and your logic makes sense to me. DT

          Dec 27, 2014 27:18 AM

          And this would be a great time for the USD to cool off for a little while too.

      Dec 27, 2014 27:01 AM

      Some of my best education came from self study!

    Dec 27, 2014 27:39 AM

    Doc, buddhism is what you are speaking of here…

    Dec 27, 2014 27:23 AM

    Bob Moriarty – nice article on Gold Canyon Resources
    From Weak Hands into Strong Hands
    At market tops, shares move from strong hands into weak hands. At market bottoms, the opposite: from weak hands into strong hands.

    Sheldon Inwentash of Pinetree Capital (PNP-T) had some early Xmas presents for investors as Pinetree Capital managed to violate covenants of their convertible debentures in November and then again in early December. On November 10, the company announced the first, on December 2, announced the second. As a result, Pinetree has been dumping shares with both hands to raise cash.

      Dec 27, 2014 27:02 AM

      I don’t follow Pine Tree.

        Dec 27, 2014 27:52 PM

        Al…he has had to sell a big chunk of investments. They were paying dollars a share several years ago. He has taken losses in the sector, like many. The highlight is the following:

        The Springpole project has a 43-101 resource of about 5 million ounces of gold and 26 million ounces of silver. The company has $1.5 million in the bank and will sit until the price of gold and silver recovers. The shares were $.25 just over a month ago and touched $.09 days ago under the weight of 12 million shares being dumped. They will recover. At $.10 a share, you are paying about $2.60 an ounce for gold in a safe jurisdiction. That’s pretty hard to beat. Who knows, gold might go up someday.

          Dec 27, 2014 27:03 PM

          Hello, I have around 10,000 shares in PNP acquired on average of 50 cents and I dumped half at 18 cents. I invest in it mostly for their junior uranium holdings and some gold. It has not worked out for me. Do you think it is still viable? I has been painful.

            Dec 27, 2014 27:59 PM


            I know nothing about PNP.

            Maybe someone else here does.

            Dec 27, 2014 27:42 PM

            Hi Lawrence, I have no interest in PNP. The info on the sell off of GCU and holding 5moz was the main reason for the post. GCU has never been much on promotion, but should turn up with the rest of the explorers when the time is right.

            Dec 29, 2014 29:25 PM

            Your Playing with fire with any resource investment. They are cyclical and have collapsed from a bubble. There will be no resource boom for some time. Moriarty is full of it. I’ve seen a pile of his recommendations be destroyed. He makes his money on advertising contracts. heres a few of his calls: the U.S. dollar is used to list paper. The stock market is going to crash. The banking sytem will collapse. It’s a correction live with it (ya sure it’s all crap. I get my research for a real pro. Bob had no idea the stock market would soar and resources would collapse. My guy call it all.

          Dec 27, 2014 27:59 PM

          Thanks Markedtofuture.

            Dec 27, 2014 27:01 PM

            BOME MUSLIMS AL

      Dec 29, 2014 29:59 PM

      Yahaha. Moriarty has been recommending buying share right through this water fall decline. A broken clock has a better record. He’s been calling for crash in the markets for over a year. He is clueless.

    Dec 27, 2014 27:33 AM

    Grant Williams has a plain and simple way of looking at how the world is going financially that makes sense. I think he understands whether things are going to get better or worse and he makes his private mind public. The people with money always get the best advice.

      Dec 27, 2014 27:02 AM

      In my opinion, Grant has the best newsletter in the world.

    Dec 27, 2014 27:34 AM

    Seg 3. People begin to believe the police are not there to protect them, but there to assault them.

    Well, how many people are aware the banks own our deposits? I bet there are more people aware of civil forfeiture.

    Ann Barnhardt On IRS Audit & Seizure: No Rule of Law! Check this interview out at silverdoc.

    My point of course is that people have reason to not trust police, the entire government actually, more and more people become aware that Iraq was all lies for example, slowly people become aware we are lied to about events in Syria and the Ukraine.

    Isreal supporting isis for example and we support Isreal, what up wit dat?
    At least Europe now talks about sanctioning Isreal for their war crimes in Gaza.

    Anyway, the people have good reason not to trust the police if you ask me, and I expect there will be more “crazys” taking law into their own hands.

    Actually, didn’t the now defunct and outdated constitution say something about the duty of every citizen to oppose criminal government and stand up for liberty?

    hmmm, wernt some of the founders considered traitors at one point?

    A few ways to look at whats going on I guess.

      Dec 27, 2014 27:58 AM

      The cops’ top priority is NOT to protect you but to protect the STATE.

      The criminal “justice” system is absurd in other ways, also. Besides deterring crime it’s top priority should be to make the victim whole but it never is.

      When your property or money is stolen you are a victim twice. First, in the vast majority of cases the system makes little or no effort to get your property or money back and then as a taxpayer you must pay taxes to lock up the perpetrator who then becomes an even worse criminal in prison who is bound to return to a life of crime when released.

      What kind of system is that?

        Dec 27, 2014 27:04 AM

        A misguided system, Ebolan!

      Dec 27, 2014 27:03 AM

      Third paragraph from the end is, I believe, true.

        Dec 27, 2014 27:05 PM

        The first paragraph is true also.

        The cops are under NO duty to protect you from crime.

        See the court case Warren v. District of Columbia

        Also, see

        Also, remember that in Furgeson the police let private buildings burn to the ground while protecting government buildings. Even with weeks to prepare for the looting they did little to protect private property.

          Dec 27, 2014 27:01 PM

          I cannot disagree with you Ebolan, from what I know about that situation.I Interesting world isn’t it!

      Dec 27, 2014 27:21 PM

      bb– please enlighten me as to the credible News source you received this concrete evidence that Israel is supporting ISIS?


        Dec 27, 2014 27:12 PM

        12/21/2014 Israeli Role in Syrian Conflict Brought Into the Open CounterPunch

        Dec 27, 2014 27:19 PM

        12/26/2014 EU Delegation: Israel has committed genocide PTV
        12/27/2014 UN predictions fall short: Gaza uninhabitable today RT
        12/21/2014 Israeli Role in Syrian Conflict Brought Into the Open CounterPunch2014:

        The Year Propaganda Came Of Age
        Submitted by Tyler Durden on 12/27/2014 – 18:31

        Joseph Goebbels had nothing on US and European media today.

        That propaganda as a strategic and political instrument has been refined to a huge extent over the past 70-odd years since Goebbels first picked up on Freud’s lessons on how to influence the unconscious mind, and the ‘mass-mind’, as a way to ‘steer’ an entire people, not just as a means to make them buy detergent. These days, the media can make people believe just about anything, and they have the added benefit that they can pose as friends of the people, not the enemy. But there is a reason why such a large ‘industry’ has developed on the web with people writing articles that don’t say what the mass media say. That reason for is, obviously, first and foremost that not everybody believes whatever they are told. The problem is equally obvious: not nearly enough people are being reached to make a true difference, and to question the official narratives.

          Dec 29, 2014 29:04 AM

          You along with most of the world in general have a deep passionate hatred toward Israel. The country has been basically quarantined by the world since 1948.
          The media which is in the business of marketing their news will print facts , fiction and a combo of both or whatever it takes to sell their newspaper. Here are some general facts . Many times Palestinians lie to the media and Hamas lies to the media too. Israel is also guilty of lying to the media.. Therefore, I am very skeptical of what I read.
          I do believe that given the opportunity Hamas would kill mostly every Jewish and Christian man, women and child that lives in Israel. The IDF wants to prevent Hamas from murdering their people.
          Can you name one war during the history of this world that there weren’t war crimes being committed by either side? Unfortunately, I don’t believe that will ever change. I do believe many Israeli soldiers have protected may innocent Palestinians from be killed and I am also sure they have killed many innocent Palestinians as well.
          When Israel claims that they have a moral army that’s like saying to the press kick me.

            Dec 29, 2014 29:52 AM

            You make some good points keylime, but I have no hatred of anybody, not a prejudiced bone in my body.

            I can only say that for myself, having read the process of creating a Jewish state and the events prior and after, I can not support them in any way shape or form.

            I don’t understand how anyone can, other than from religious perspective.
            I disagree with that perspective as well, as I have read enough of the Talmud, Torah and statements from prominent Isrealis to understand many of their peoples thinking about people other than Jews

            And yes, I know that not all Isrealis believe Jesus is idol worship and being boiled in human excrement etc and other people only exist to serve Jews and murder and theft of non Jews doesn’t count for example. I know not all Isrealis don’t think that way, but as the Christian beliefs allowed for slavery in the states, the Jewish beliefs allow for the extermination of Palistinians. I guess the beliefs of the isis Moslems allow them to behead and enslave people too. Thinking about it, are not all 3 groups worshipers of the same God of Abraham?

            In any case, you have some good points, I don’t hate anyone, especially “passionately” lol
            But I do dislike their actions and even their thinking.

            Be nice if some day people embraced what Jesus and the others saying the same things were talking about.

            I let Isreali actions speak for themselves, I just see it as wrong.

            Dec 29, 2014 29:56 AM

            A lot of folks do, bb.

            That is a no win situation over there until some mindsets are changed.

            Dec 29, 2014 29:33 AM

            I know that not all Isrealis believe Jesus is idol worship and being boiled in human excrement etc and other people only exist to serve Jews and murder and theft of non Jews doesn’t count for example.

            Oy Vey is that what you know? Have you ever been to Israel? Keep in mind there are about 130, 000 devout Christians living in Israel. You may learn more about Jesus in Israel than you would anywhere on the face of this earth.

            Dec 29, 2014 29:51 AM

            Not sure, keylime, that I ever made those comments about Jews. My feelings are quite the contrary!

            Dec 29, 2014 29:13 AM

            I kind of doubt I would learn more about Jesus in Isreal than anywhere else.
            Unless your eluding to “secret” records? But there are also “secret” records in Ethiopia The Vatican for example, there are also records in India and elsewhere that are not held in “secret” but are just mostly ignored.

            To be honust, I figure I got the point of what he was talking about years ago.
            The trick of it is mearly to live ones life with that knowledge in mind.
            Maybe others think differently.

            In any case Jesus or rams horns, walls or temples.
            I don’t agree with their genocide of Palistinians, nor do I agree with them supporting isis,(or isis for that matter) remember it was the big ally America that created these isis guys in the first place.
            I understand the west is the “good guys” it doesn’t count the Iraqis or Vietnamese we killed for example, when we and Isreal kill people, we only kill “bad guys”.
            I understand that, I just disagree with it.

            As for believing our government, may I suggest watching some George Carlin, much more entertaining than actual reporting, but no less valid.
            There are lots of other routes, but they can seem like effort, where as Mr Carlin causes laughter.

            Keylime, I am never going to agree with what Isreal has done and does nor would I agree with any other group or government doing the same things.
            I don’t care what gods and arguments are used to justify these actions.

        Dec 27, 2014 27:31 PM

        keylime, the story of what the Isrealis have done and do has been there and told by many sources continuously for anyone that has wanted to follow it from about 1948.

          Dec 27, 2014 27:58 PM

          Quite a bit more difficult to follow tho before the net, but now, we have access to the info.

          Dec 28, 2014 28:11 AM

          If Joseph Goebbels were alive today rest assure he would probably spread the same word that Israel or better yet “the Jews” are supporting ISIS as well.
          Interesting to note the same news propaganda about how Israel is supporting ISIS” can be found on David Duke’s website. If you go onto the Aryan brother hood and other white supremacist website you’ll probably find similar anti Israel rhetoric as well.

            Dec 28, 2014 28:29 AM

            Isreal, has been supporting isis in Syria as they see the end of Assad being to their advantage.
            I am not “anti” Isreal or “anti” Jew, I could care less what religion a person is.

            But I am not going to Ignore what they have been doing, nor would I approve of it, to be fair, I wouldn’t approve of what Isreal does no matter what religion they were.
            The religion is not the point, what they do is the point.

            I don’t visit “white supremisist” sites and never herd of David Duke, but if they have been pointing out what Isreal has been doing, it makes what Isreal has been doing no less true.
            Cant tell you what those sites are saying tho, never been to them.

            Dec 28, 2014 28:50 AM

            keylime, you asked for evidence from credible sources, I gave you 3, did you read any of them? Just wondering.

          Dec 28, 2014 28:56 PM

          Do you realize your source of News is Press TV? This is a 24-hour English language news organization of the Islamic Republic of Iran Broadcasting This is one of your sources that Israel is supporting ISIS.
          Your other news source that Israel is supporting ISIS if from the Russian Times? We all know how much Russia adores Israel.
          Lastly another source that Israel is supporting ISIS is Counterpuch which is a radical left wing newspaper.

          Then you go on and talk about propaganda?

          All the above newspapers are extremely anti US government and Anti Israel.
          I believe the only news they will report about Israel will always and only be negative.
          I don’t expect you to only read y read the the Jerusalem Post but it may not be a bad idea to be a little bit skeptical of who is actually reporting the news.


            Dec 28, 2014 28:11 PM

            I’m sorry you quoted the Iranian Newspaper reports that Israel is guilty of genocide not that Israel is supporting ISIS.
            It’s just my guess but I have to assume that those working for the Iranian Newspaper probably don’t have too many positive things to report on Israel.

            Dec 28, 2014 28:16 PM

            I just gave you some examples.
            Your a supporter of Isreal, that’s ok, you wont like any thing reported about Isreal by anyone most likely.
            But just because you don’t like the source doesn’t mean its not true, you think American media will give you truth about Isreal?

            An example of western media truth.
            10/27/2014 Canadian & Australian PMs Deliver Exact Same Speech Word-For-Word on Iraq & Terrorism XRepublic

            Heres a few more examples maybe from sources more to your liking.
            This story of Isreal has been going on a long time.

            11/15/2014 How Israel Is Turning Gaza Into a Super-Max Prison AlterNet
            11/11/2014 Israel’s Annexation Plan for Palestine WUFYS More War Crimes From Israel
            11/10/2014 The Silence of the Israelis on ISIS ICH
            11/08/2014 War Crimes: Israel Showed ‘Callous Indifference’ to Gaza Civilian Deaths Antiwar Well, Duh
            11/04/2014 Former Israeli soldier describes how IDF troops do not view Palestinians as ‘human beings’ Independent
            10/28/2014 Middle East borders bound to change: Israel minister VeteransToday This is called “War Crimes”

      Dec 27, 2014 27:34 PM


      If stupid loud mouth Ann Barnhardt would pay her income taxes she would not have had her bank account confiscated by the IRS because of back taxes which she refused to pay. She got what she deserves.

        Dec 27, 2014 27:35 PM

        Well, j miller, your probly right, we do get the government we deserve.

    Dec 27, 2014 27:55 AM

    Making moderate good money investing in blue chip food and medical stocks. REITS and now pipeline master partnerships are getting my attentions . I love the oil and gas industry but i am waiting for a more definate bottom in crude oil price. look at corporate bonds of oil companys as well. good health and wealth to all S

      Dec 27, 2014 27:05 AM

      Good point Scott!

    Dec 27, 2014 27:07 PM

    BAY BAY !

      Dec 27, 2014 27:18 PM

      Sorry The Greater, I don’t understand the comment.

        Dec 27, 2014 27:29 PM

        GOD LOVE’S YOU AL !

        Dec 28, 2014 28:07 AM

        No Al, that’s Franky talking. He is saying “bye bye” because his Franky moniker got blocked again.

          Dec 28, 2014 28:29 PM

          INJOY Birdman ! One day AL will block you to ! I Need same time off !

            Dec 29, 2014 29:04 AM

            I’m not too worried, Franky.

    Dec 27, 2014 27:18 PM

    The portfolio you posted back in 2011 must be down 35% while the conventional market is up 35%.

    With the Tsx Venture now down to 675 from 3500 down 85% making the crash as bad as the NASDAQ.

    Imagine companies with no cash flow that spend money on advertising and praying their business model succeeds crashing?

    Al you once mocked IA’s for recommending dot com stocks, I imagine you feel the same about mining exploreco’s?

    You should have Peter Grandich on to tell us how the Canadian dollar and gold is protecting his wealth from the collapse in the USD? And to remind us how wrong Jon Nadler was?

    Maybe have Paul van Eeden back so you can admit he was right, as he warned your readers to sell all resource stocks in 2007 and sit in cash and buy US stocks.

      Dec 28, 2014 28:22 AM

      1.) Explorecos are nothing like dot com stocks.
      2.) Peter Grandich is NOT wrong yet. He wanted to bet Nadler that gold would go to $2,000 before $1,000.
      3.) Paul van Eden’s advice was way too early to be considered correct/smart. Gold is still up 41% from its 2007 high while the Dow is up about 27%.

    Dec 27, 2014 27:16 PM

    Al and Cory,

    Great show as usual.

    The one thing that your guests and most ( from what I have listened and read on this site ) don’t get is how money is created.
    When you have a complete and intimate understanding of how money is created, you will follow the financial bouncing ball a little better.

    That’s not my opinion,, it’s Fact.

    Dec 27, 2014 27:58 PM

    Big Al, Cory and the rest of you…you boys see this? What can you expect of a nation where a third of the population has venereal disease?

    But at least it is nice to see politicians helping each other, especially at this time of year.

    Dec 27, 2014 27:58 PM

    Big Al, Cory and the rest of you…you boys see this? What can you expect of a nation where a third of the population has venereal disease?

      Dec 28, 2014 28:05 AM

      This is the Roman Empire Ebolan where covetousness and adultry typically bludgeon old fashioned and simplistic notions that virtue should be nourished and respected. Some people think we live in a period of enlightenment while others are certain no God even exists. What is really interesting though is how societies can take such dramatic turns in either direction depending on war, the economy and political views of the population. Conservatism is in a running battle with the freedoms demanded by liberal thinkers. But that cycle is also a very long one. It is so long that at their furthest philosophical points what is espoused by their adherents seems entirely normal no matter how extreme in either direction they have gone. At this time in history we are at a stage when Western hedonism has almost peaked. Pornography has run rampant across society such that it seems normal while more conservative societies such as those in the East are repulsed to the extent the West appears Satanic if not just god hating. The value systems could not be further apart.

        Dec 28, 2014 28:32 AM

        Amen to that post, birdman. Doc.

        Dec 28, 2014 28:18 AM

        Bird, I would just like to add that millions of Americans are convinced they are fighting in a holy cause for the rights of oppressed nations and that war can be fought if it ends all war. This is the belief by many more millions that sustains their actions.

          Dec 28, 2014 28:53 PM

          Is it any wonder we are so confused!

      Dec 28, 2014 28:26 AM

      That is a FANTASTIC link. I suggest everyone look at the list.
      My favorite duet?
      o More than half of all American workers made less than $30,000 last year.
      o More than half the members of Congress are millionaires

    Dec 27, 2014 27:58 PM

    But at least it is nice to see politicians helping each other, especially at this time of year.

    Dec 28, 2014 28:05 AM

    About three months ago I said Jeb Bush would be the front runner for The GOP, with politics you don’t get a choice anymore, it’s all backroom done deals, as usual.

    Dec 28, 2014 28:28 PM

    Loved the saying from Grant Williams – picking up nickels in front of a steam roller.

    Seems to me that is a good analogy for life in general for most people.

    Dec 28, 2014 28:57 PM

    I am not American but has some investment in US stocks. When MyRA is starting to work, 401k or employer’s contribution will be diverted to government savings bond. Does this mean there will be less money for the stock market. Do you think it will drain liquidity so that stock market will decline? Anybody gets idea?

    Dec 29, 2014 29:35 AM

    I have never posted here although I have been a listener for several years. I had the utmost respect for the commentary and insights found on this site.

    I am a libertarian, sound money advocate, fan of Russian literature, teacher, and police officer. I have spent 27 years arresting drunk drivers so they don’t end up in the back of your wife’s mini-van. I have spent 27 years interviewing and arresting sex offenders so they don’t sleep with your children. And yes; during my 27 years I have put several murders including one serial killer in jail for life.

    To hear and see independent thinkers parrot propaganda on this site is very disappointing. Al – you are my favorite but to not even express remorse and sympathy over the death of two young law enforcement officers is unpardonable. You should be ashamed. To those criticizing the police on this blog, what makes you an expert? Did you read something in a blog? OR did you go for a ride-along in East St. Louis? Did you attend a Citizen’s Police Academy? Have you sat down with your local police at the coffee shop and listened to them?

    Your words have meaning folks. Be careful. You may very well get a “libertarian-hands-off-police force”. THEN God help you because we may not!

    But for now, I promise, I will return to work and protect you with all the zeal I can muster. God Bless

      Dec 29, 2014 29:04 AM

      Thank you very much for the comment JLG,

      Our official comment, as you probably know, is that we abhor violence.

      I happen to disagree with those who say that they believe that the U.S. has turned into a police state. That doesn’t mean that we are not friends. It simply means that we disagree.

      I was remiss in not expressing my feelings more adamantly about the two slain police officers and I am sorry for that.

      My comments, mostly off mike, dealing with situations like Ferguson are quite negative about the populations of areas like that. One simple question I have is why don’t those folks take care of business. Charles Barkley asks the same question.

      God Bless you and people like you JLG.

        Dec 29, 2014 29:37 AM

        The U.S. is well on its way to becoming a police state. How anyone can deny that is beyond me. There are WAY too many power-tripping thug cops out there that view every non-cop as a “bad guy.”
        A “libertarian-hands-off-police force” would be ideal. It’s funny that a self-proclaimed libertarian doesn’t know that private solutions would easily deliver better results more efficiently than any provided by aggressive, corrupt, and unaccountable government.

    Dec 29, 2014 29:35 PM

    Post:27, 2014 at 4:42 pm,
    Your Playing with fire with any resource investment. They are cyclical and have collapsed from a bubble. There will be no resource boom for some time. Moriarty is full of it. I’ve seen a pile of his recommendations be destroyed. He makes his money on advertising contracts. heres a few of his calls: the U.S. dollar is used to list paper. The stock market is going to crash. The banking sytem will collapse. It’s a correction live with it (ya sure it’s all crap. I get my research for a real pro. Bob had no idea the stock market would soar and resources would collapse. My guy call it all.
    Anyone selling advertising is bias. Sprott is an idiot too. I use to deal with them direct. He drank the coolaid too and went in up to his eyeballs. He destroyed my hedge fund.
    The fuel crash is going to boost usa even more. I was just the and its rocking.
    Steer clear of the charlatans.

      Dec 30, 2014 30:05 PM

      Thanks Bill, certainly hope that you don’t put us in the “charlatan” category.

    Dec 30, 2014 30:17 AM

    The truth In reality, gold bugs are not offering legitimate predictions. They are trying to create a self-fulfilling prophecy. You see, because there is no way to value gold using accepted forms of valuation, the price is determined solely by perceived value, which is itself based on the anticipation of price appreciation. So if all of the gold bIn reality, gold bugs are not offering legitimate predictions. They are trying to create a self-fulfilling prophecy. You see, because there is no way to value gold using accepted forms of valuation, the price is determined solely by perceived value, which is itself based on the anticipation of price appreciation. So if all of the gold bugs keep telling you that gold will reach $5000 or even $10,000 all while creating doomsday scenarios, it just might reach $5000, but only if YOU make it happen. That’s not investing. It’s speculating because such price levels are not sustainable, nor are they based on valid economic fundamentals.

    In practice, many gold bugs are involved in what I feel resembles penny stock pump-and-dump scams. You’re probably familiar with how these scams work. I see them almost every day. A wave of propaganda is pumped out to unsophisticated investors who believe the hype and exaggerations by stock promoters. And while these worthless stocks sometimes rise substantially in price, the party usually ends without warning, leaving most people stuck holding the bag after it has emptied. Bugs keep telling you that gold will reach $5000 or even $10,000 all while creating doomsday scenarios, it just might reach $5000, but only if YOU make it happen. That’s not investing. It’s speculating because such price levels are not sustainable, nor are they based on valid economic fundamentals.
    In practice, many gold bugs are involved in what I feel resembles penny stock pump-and-dump scams. You’re probably familiar with how these scams work. I see them almost every day. A wave of propaganda is pumped out to unsophisticated investigation tors who believe the hype and exaggerations by stock promoters. And while these worthless stocks sometimes rise substantially in price, the party usually ends without warning, leaving most people stuck holding the bag after it has emptied.
    Bob M always happy to sell you some time bombs. The truth will set you free. The worst for the U.S. is way in the review mirror. Non of the pumpers will ever own up to it or maybe they drank their own coolaid.

      Dec 30, 2014 30:57 AM

      What’s not sustainable is the Federal Reserve Note U.S. Dollar fake. This cheesy stunt double does nothing but lose value in the long run.
      You say that $5,000 gold is not sustainable, but you do not provide a reason. Is the current price sustainable? It is, after all, 35 times higher than the pre-Nixon official price.

      Dec 30, 2014 30:24 PM

      I completely agree with you on most of what you say, Bill.

        Dec 30, 2014 30:39 PM

        Al….Respect! Thanks for the open forum.
        A good friend manages 250mil and says they would have had to print 2-3 times what they did in the US to serious damage or MAJOR inflation….He led me away from commodities 2009-11. The bubble burst… Things are far from perfect but the US is doing quite well….others are not. There is still a lot of trouble out there but it will wiggle through. We are in a long term inflationary depression….it looks like. Wage earners are toast and the rich that have a solid lock on real-estate and manufacturing of consumables ect will do better that fine…. The guy working at Starbucks most likely will never retire along with millions of others…Gold WILL NOT SAVE THE POOR or anyone else….It has no productivity…Get back to work Matthew….
        Did yo know England, Japan and China have been buying bonds to support the US in a big way? There’s plenty of allies of the US….
        Canada is some what on the ropes and it looks like more and more our loonie is used toilet paper…..

          Dec 30, 2014 30:50 PM

          Yes, I am aware of that. Remember that the dollar can go down in purchasing power even if it is going up in terms of other currencies. Plenty of purchasing power has been stolen in just the last 15 years.
          I don’t think the loonie has much more downside and would much rather accumulate it here than the USD.

            Dec 30, 2014 30:11 PM

            That’s the game. Depreciate paper…Nothings change in a eons.
            I’d rather accumulate real estate. Loonie could bounce…I hope… most things are priced in Dollars, including many countries that use them, and I need more.
            The dollar is not toast…Bob (clown)

            Dec 31, 2014 31:13 AM

            Keep in mind that the dollar wouldn’t have to be “toast” for gold to go to 5 or 10 thousand bucks. Luckily, we don’t need a price anywhere near those levels for the miners to do extraordinarily well.

    Dec 31, 2014 31:46 AM

    Bond buying in mass by china….they were not dumping. What your suggesting is a complete guess. There’s massive support for the US and a collapse in oil…..These ar facts.
    The dollar is a dream compared to most things…Gold doesn’t even weigh in. Its an infinitesimal market. The DOW is better than Gold for a number of reasons. People would rather own many other things.

      Dec 31, 2014 31:04 AM

      —Gold doesn’t even weigh in? The USDX is up 12% this year but is basically FLAT vs gold.
      —It’s an infinitesimal market? WRONG. That’s a widely believed myth based on successful propaganda.
      —Fact: Those who bought the Dow at its 2007 high are now up 26% while those who bought gold at its 2007 high are now up 40%. Those who bought the Dow at the 2000 high are now up 53% while those who bought gold at its 2000 high are up 270%.
      —Fact: The 100+ year average Dow-Gold ratio is about 10. It is currently 15. In 2011, it bounced from 5.8 —the HIGH just before the crash of ’87. A spike well below 5 indicates a bubble in gold.
      Fact: Previous secular Dow bear markets have ended with a PE below 10.

      Dec 31, 2014 31:05 AM
    Dec 31, 2014 31:08 AM

    See below that was Written before gold ever hit $1000 and then the bull marke ENDED at $1900ish. Mathew I believe you were into TGM @ .40c and a big believer. Then it crashed to .15c. Who knows when to hold or dump these sticks of dynamite??! :::
    Here::::Will gold head to $2000 per ounce? It’s certainly quite possible. What about $2500? That too is a possibility. For prudent investors, the most important question is not how high the price of gold will rise, but when to exit gold because when the gold bull market ends, the price will collapse and remain low for many years. Prudent investors focus on valuation and risk in order to create entry and exit strategies because this forms the basis of a responsible investment management process.

    Regardless how high gold rises, the rise in price has nothing to do with real investment dynamics. It’s pure speculation. Sophisticated investors understand this. In my opinion, the gold pumping campaign resembles a pyramid scheme whereby gold dealers profit, along with those who bought gold earlier in the bull market. Meanwhile, most of the people buying gold at these levels stand to lose money down the road because they have no exit strategy. They have been convinced that gold will remain above $1000 per ounce forever. This assumption is not valid and is likely to cost many people a lot of money.

      Dec 31, 2014 31:34 AM

      I remain very confident about TGM. That decline was due to perceptions about political risk and at least one popular newsletter advising its readers to dump it. I completely disagree with that letter and did not sell a single share on that advice. Speculating on such projects is not for candy-asses or fools who think that a 50% decline is unusual when the potential upside is 5,000%.
      Re: “Regardless how high gold rises, the rise in price has nothing to do with real investment dynamics. It’s pure speculation.”
      This comment is just pure nonsense, no offense intended. You seem to think that the dollar represents a stable and trustworthy measure of value. If so, you have things backwards.
      The FAIR dollar price of gold is in a long term uptrend that will not end until the monetary system is no longer a ponzi scheme. It will greatly overshoot in both directions as those who are right battle those who are wrong. Multi-year bear markets will not change the destination.
      Sophisticated investors understand that the markets act as a voting machine in the short term (reflecting sentiment/emotion) and a weighing machine in the long term (reflecting fundamental value).

    Dec 31, 2014 31:27 PM

    Many stocks have lost 90% of their value. Its a bear market until further notice.
    Gold is a speculative asset more so than any other. There is not even a dollar gold link…only from time to time….
    I know a lot of wealthy people and they own real estate…They are not sitting around counting their gold bars. Your going to put 7 figures into gold?
    Best of luck

      Dec 31, 2014 31:41 PM

      Re: “Gold is a speculative asset more so than any other.”
      Again, you’ve got it PRECISELY backwards. Once you understand the difference between price and value, you’ll understand that there is no other single asset that is as safe as gold.

      Did you know that economists of over forty years ago were worried that gold would collapse to 6-8 dollars per ounce if it was no longer “backed” by the dollar? The only thing worse than such foolishness is that chumps everywhere didn’t burst into tears of laughter.
      There is simply no easier or safer way for the average guy to preserve purchasing power than to own gold. Speculative opportunities in the dollar can be ignored.

      Don’t you wonder why central banks own it?
      They understand money, that’s why.

    Dec 31, 2014 31:35 PM

    Tech stocks have BLOWN PMs away…PM stocks could barely go up in the bull market due to increasing oil prices. Now their touting their going to go up because of low oil prices?! With gold in decline….its crap I say…

      Dec 31, 2014 31:45 PM

      The HUI (SENIOR not junior gold stocks) went up 1600% in the first few years of the secular bull that began nearly 15 years ago. Juniors did far better.

    Dec 31, 2014 31:24 PM

    Ya not bad but nothing compared to the NASAQ Bubble.
    Bob Moriarty calls the DOW a bubble and that’s laughable…Its gone up on earnings. CEOs are among the smartest running their businesses. When the recession hit it was cut slash and burn and layoff. Getting efficient and then the first to upswing while the Goldie’s turtled. Then the cheap oil came and I think its going to help all a lot. My family is booming in the US….Building in WA state is full tilt. Boeing has 1000 x 289mil for the 787. Burn baby burn…..Bob is an absolute idiot…sorry Al. Hes a one trick pony. My broken clock kicks his butt….Facts are in the numbers…

    Dec 31, 2014 31:54 PM

    Happy New Year!
    And lets hope for a rally in gold stocks. My $100k in Sprott Hedge Fund is $28K….dam good thing I sold most it off way back. Need 3 months notice to sell it!! Good job Eric…NOT!!