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Welcome!

A look ahead to investing in 2017

Cory
December 31, 2016

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We wish everyone a very happy New Year! We hope 2017 is the best year ever both personally and financially.

In the first hour of this weekend’s show we take a look ahead to 2017 and what could be for the commodity sector and some other opportunities we see developing.

  • Segment 1 & 2: Rick Rule shares his outlook for 2017 in terms of metlas, China and what he is doing with his money.
  • Segment 3: Richard Postma AKA Doc looks at what his charts are saying for gold and commodities in 2017.
  • Segment 4: Chris Temple considers the Carl Icahn appointment as special advisor on regulatory reform and what that means for the shift to more active investing.

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

Discussion
112 Comments
    CFS
    Dec 31, 2016 31:18 AM
    CFS
    Dec 31, 2016 31:21 AM
      Dec 31, 2016 31:52 AM

      agree,,,,,I listened to Turd and Willy last night……..

    CFS
    Dec 31, 2016 31:26 AM

    The SGE has taken measures to reduce manipulation:

    http://www.reuters.com/article/us-china-gold-idUSKBN14I031

    Current Prices on SGE:
    GOLD $1184.43
    SILVER $17.87

    Dec 31, 2016 31:33 AM

    when will the next Theralase update be aired?

    CFS
    Dec 31, 2016 31:14 AM

    Re: Segment 2:
    China may be experiencing an outflow of capital, but I believe Mr. Rule underestimates the intelligence of the Chinese leadership.
    China has been acquiring resources at LOW PRICES with this outflow of capital.
    They will create a viable Asian economy with their new silk road, which will supplant the US as their export generated wealth will continue to grow, while the US declines.

    CFS
    Dec 31, 2016 31:23 AM

    Re: Segment 3:
    Thank you, Doc for all your commentaries.
    (Especially, as you seem to reinforce my own views)
    I, too, have been slowly moving into energy again, and also rotating some of my mining interests.
    I do disagree with your belief that the dollar retains its strength; only the extremely weak Euro and banking problems in Europe will give it the appearance of strength.

    Dec 31, 2016 31:42 AM

    Here is a chart featuring a few notable Gold & Silver Jrs that had nice moves over the last week (Dec 23- Dec 30th) from the front to the back side of the holidays.

    $DEF $KS $GRR $SGN $GGD $CLZ $MQR $GPY $BBB $BEX

    ( $IRV and some of the #AussieStocks were not able to be put into stockcharts or bigcharts)

    http://stockcharts.com/freecharts/perf.php?DEF.V,KS.V,GRR.V,SGN.V,GGD.TO,CLZ.V,MQR.V,GPY.V,BBB.V,BEX.V&p=0&O=111000

    Of course the real fun is going to be working on the 2016 annual charts by sub-sector 🙂

    ** Anyone have any stocks they think started low and ended higher than their peer companies?

    It’s a bit of a limiting metric to only look at the start and end date for a year to categorize companies performance, because really the best gains were Jan 19th through mid August in most companies, and that would have been a great comparison.

    Some of the companies that charged higher the strongest in 2016 also crashed lower the hardest….. #ThatsTheWayTheCookieCrumbles in the miners though.

    Regardless, it will be interesting to see what companies performed well from Dec 30th to Dec 30th. Stay tuned…..

    Dec 31, 2016 31:05 AM

    ** Here are the 2016 Annual Performance Charts for Silver Stocks:

    (These charts show price action from Dec 30th 2015 – Dec 30th 2016. Move cursor over the colored lines to highlight that particular stock)

    1) This first composite chart shows 10 of the Major and Mid-Tier Silver Producers for 2016:

    $SSO $PAA $FRES.L $TAHO $HOC.L $CDE $HL $FR $EDR $SVM

    http://stockcharts.com/freecharts/perf.php?SSO.TO,PAA.TO,FRES.L,TAHO,HOC.L,CDE,HL,FR.TO,EDR.TO,SVM.TO&p=5&O=011000

    Dec 31, 2016 31:32 AM

    Peter Boehringer: Germany’s gold reserves in U.S. were only paper claims

    That explains why the Bundesbank and New York Fed could never produce proof of the gold’s existence and why it has been taking the Bundesbank so long to recover its foreign-vaulted gold.

    By Peter Boehringer, Founder
    German Precious Metals Society

    As it often has done before, Germany’s Bundesbank has released news at Christmastime to avoid critical examination and discussion, this time news about its repatriation of the nation’s gold reserves.

    The repatriated tonnage volume reported — “approximately 200 tonnes,” bringing the total of gold repatriated to approximately 1,580 tonnes or 47 percent of Germany’s gold reserves — is OK, not spectacular. And this month there was far more important news about Germany’s gold, though it was overlooked.

    The important news came December 21 from the major German news agency, DPA-AFX, and most likely was written by the Bundesbank itself for DPA-AFX. The news agency published a German-language news brief that was uncritically republished by most German newspapers and magazines without anyone recognizing its political, economic, and historical sensitivity.

    … Dispatch continues below …

    http://gata.org/node/17075

    b
    Dec 31, 2016 31:05 AM

    http://www.moneyshow.com/

    Why Canada’s Cannabis Industry is the Best Place to Invest
    Published: 07/11/2016
    By: Michael Berger Top Investments in the Canadian Cannabis Industry

    We believe that Aurora Cannabis Inc. (A CB. C N) (AC BFF) represents an attractive investment as it possesses the right traits and continues to execute on initiatives while registering new medical cannabis patients at industry leading rates.

    Aurora Cannabis trades on both the Canadian and United States stock exchange. The company’s Canadian symbol is A CB .C N and its United States symbol is A C BFF.

    The company is the only licensed producer of medical cannabis in the province of Alberta, which has a population of 4.1 million people, and has registered patients across Canada, which has a population of 35 million.

    Aurora Cannabis has been selling cannabis products for less than six months and continues to register new patients at industry leading rates. Last week, Aurora announced that it exceeded 4,500 active registered patients and management believes that this represents the fastest organic growth rate in patient registration when compared to any Canadian Licensed Producer.

        b
        Jan 02, 2017 02:16 AM

        thx FranSix
        I hadnt seen that.

        Metrium was just bought by Canopy, wonder what happens to shareprice, for them or all growers.

          GH
          Jan 02, 2017 02:43 AM

          What are the rules in Canada regarding growing one’s own?

          Just like with the food supply, if you don’t grow it yourself, or get it from a trusted grower, then you really just don’t know. The highest quality will never be mass produced.

        Jan 02, 2017 02:00 AM

        Yep, there are companies branding themselves as “pesticide free” and there are number of other nasty chemicals that some growers use. Not all growers care as much about the end user, so just like the “organic” craze in foods, this kind of product positioning will be key in this industry as well.

    Dec 31, 2016 31:06 AM

    Excellent show for ending the year guys. Rick Rule is enjoyable to listen to always, but enhanced greatly by his humor and command of the language.
    Doc’s ideas on the USD and bonds will likely be correct, again. He has helped my net worth tremendously this year and I’d be better off had I listened more intently! Cory’s subdued skepticism is always welcome and should never be discarded.
    Chris always adds a dimension that we novices hadn’t been thinking about and many times ties into the thoughts of the other guests, but with a different twist.
    Al, I hope your thoughts on sentiment truly works out for you. My personal belief is that the euphoria shown since the election stands on some weak legs. Attitudes can turn on a dime and by the end of next year, we’ll be engrossed in the blame game again for the problems that will undoubtedly occur. We could very well be in a recession in 9 months or so. I could go on but simply count me out as a believer in Mr. Trumps hype and hubris. Happy New Year to you all and thanks for producing the show!

    Bob
    Dec 31, 2016 31:46 AM

    Can someone tell me how I get to or find the second hour ???

      Dec 31, 2016 31:06 PM

      you should be able to see it under KER POLITICS

    CFS
    Dec 31, 2016 31:14 PM

    An interesting expose on Soros….

    https://www.youtube.com/watch?v=IQdsgJEjFcY

    Dec 31, 2016 31:48 PM

    Rick Rule is incredible – simply take any interview of his for the past 4 years; change the date and wala! The same claptrap & mumbo jumbo simply recycled. Just once I would like one of these gurus to simply say I like precious metals because I am comfortable with it as an investment vehicle AND I have no idea what it will do tomorrow – let alone 1 year from now.

      Jan 01, 2017 01:29 AM

      You should have stopped after four words. Rick Rule relies heavily on judgments of valuation. PMs have been cheap for more than 3 years, so his comments during the period have maintained a bullish undertone. He never claims to know what will happen tomorrow, but his long-term outlook is always well-reasoned.

        Jan 01, 2017 01:24 AM

        First time I can remember him talking banks. Or ‘banks’ as it were, because he normally elies on euphemisms.

          b
          Jan 01, 2017 01:46 PM

          I really havnt bothered spending time on many of these guys, its always the same, buy buy buy.
          Even when it was tanking from $50, buy, even better time to buy etc etc

          Anyone I found that actually gave a rational opinion were never found at KWN Keiser these mining conventions etc They were on TV, they were not bull or bear but suggesting to wait to buy when it got cheap.
          Maybe we are getting cheap.

          One thing, after years of “silver will run out” “to the moon” “manipulation” and on and on, ya can kinda tell who is full of it.
          Gotta pity anyone just learning of course.

            Jan 01, 2017 01:55 PM

            after a number of years…..I would say there is a lot of bs with many of the so called gurus

            Jan 01, 2017 01:16 PM

            When they’re talking buying, it’s up to you entirely to determine the entry point. I have never known Mr. Rule to advocate any asset at the top of a market while he offloads.

            b
            Jan 01, 2017 01:47 PM

            I never said he did Fran.
            I just think he has tied himself to PMs enough he hasnt any choice but to promote.
            And why not? hes made enough cash to be able to honustly say there is coin in it.
            So have I, and alot of people, but ya ever gonna hear about the criminality?scams? etc? from Mr Rule?
            Your only going to hear from Mr Rule what he figures is positive.

            The only person I recall making such mentions is Mr Bob.
            Can take courage when advertisers are your income.
            Maybe I forgot someone?

            Jan 01, 2017 01:58 PM

            After obvserving myself on the interim correction in gold mining stock and his calls for a correction, I would say that these calls were correct in hindsight and provided ample warning of a serious correction coming.

            Jan 01, 2017 01:36 PM

            The only validation we have that Rick Rule has made any money on PM stocks is by his own word. Does anyone really know what his financial statement portrays? To say he says he made a gazillion dollars – well, that is all part of the facade. Rick and the Sprott boys heavily “invest” in exploration companies and the metals – which have all imploded over the past years – so they may have been worth a gazillion dollars in 2011 – and perhaps now – a few less! Yet, they still forecast the rainbow is just around the next turn. At some point they will be correct, however, YOU may not be solvent enough to be there with them. (Think of that Williams guy – hyperinflation is just around the corner – he forecasts hyperinflation each year since 2008, yet we simply have never ending waves of deflation). The message in gold is deflation – be cautious – gold is shouting deflation.

            Jan 01, 2017 01:27 PM

            FranSix is right. Those who pay attention know that Rule has a very good record.

            Jan 02, 2017 02:07 AM

            As I stated – Rick is incredible. His interview is chock full of word misuse, which he hopes will give the impression of intelligence. Example: when is an increases in book value an arbitrage? Answer – never. I think Rick went to the same sales seminar as Allan Greenspan. Many thought Greenspan was so very intelligent because they did not understand what he said, but in reality it was simply the mumblings of a senile old man.

            b
            Jan 02, 2017 02:43 AM

            Another Interview With Silver Guru Ted Butler
            by Jim Cook, Silver Seek:

            Butler: The facts surrounding silver have never been more bullish.
            Cook: Such as?
            Butler: Over the last few years, enormous changes have recast and transformed the silver market. (changes?sounds like the same tune to me)
            Cook: Can we have an example?
            Butler: In only a few years, JPMorgan has accumulated the largest hoard of silver in the history of the world.

            Biggest hoard in human history, and the whole time absolutely everyone got all they wanted, Silver Doc still runs the sale.

            Bob is right about the manipulation, if anything silver stackers should be grateful to the manipulators, think how cheap it would be without Morgan hoarding the biggest pile in human history.

            Silver investors better pray they dont let it loose.
            Gold? 70 year supply above ground now?

            The only reasons I can see PMs moving up is psychology or backing a currency.
            Might be planned, the popularity of Bitcoin might be telling us faith in paper could be wanning.
            Wouldnt it be interesting if they decided to back paper with PMs and nobody cared.

            Jan 02, 2017 02:12 AM

            I’m puzzled by the negative comments about Rick Rule. If anyone cares, go back and listen to his remarks under different market conditions. For example, at the 2016 peak for gold miners during summer, he was quite cautious. Regarding gold shouting deflation, I think gold is shouting that people become very delusional during the late stages of a bubble.

            GH
            Jan 02, 2017 02:50 AM

            +1, Scott

            Jan 02, 2017 02:01 AM

            +1 Scott

            b – Gold will go up because it is cheap compared to debt – which includes fiat currencies. Currencies will continue to be sacrificed at an increasing rate in an attempt to mitigate counterparty risk. Real interest rates will go consistently negative as a result.

    Jan 01, 2017 01:20 AM

    Interview summary …

    BIG AL: Do you share my optimism at all?
    RICK RULE: I don’t.

    Jan 01, 2017 01:21 AM

    2017 Predictions on Trump, Gold, Silver, Housing, Stocks, Bonds & Antarctica-Clif High

    Internet data mining expert Clif High says forget about the rumors and predictions of Donald Trump being blocked from taking office. High says Trump will be sworn in as the 45th President and explains, “I don’t have any data that says, hard stop, Trump is assassinated. I don’t have that . . . . I am willing to back my data with real money, an ounce of silver, and I have an ounce of silver, and I would be willing to bet the inauguration part goes through smoothly given the emotional data sets we have now.”

    https://www.youtube.com/watch?v=HVAI07f-5M0

    Jan 01, 2017 01:46 AM

    Anyone have any idea what Clive Maund is saying about copper and the USD in his latest article?

    Jan 01, 2017 01:22 AM

    If my own prognostications about the market are correct, then the $IRX should be the basis for a ‘top’ in the market.

    I am still quite annoyed at not seeing a gap up in volatility ETFs prior to elections in the U.S., but consider the rise of treasury bill rates in the U.S. the same as a yield curve inversion, but spread over global bond markets as if they had become a single political entity.

    The only way out is lower rates than thought possible. Another strategy employed by governments will be the avoidance of hyperinflation, by instituting cashless societies, devaluation of currency by universally guaranteed income, and negative rates.

    http://schrts.co/SXgMle

    Jan 01, 2017 01:48 PM

    2016: An Unpredictable and Wild Year (Gold & the Markets)
    December 30, 2016 – Gary Wagner (VIDEO )

    “It’s hard to believe, but the final trading day of 2016 is upon us. 2016 has been chock-full of twists and turns, with a finale that even the best fiction writers could have never imagined….”

    Brexit and Trump

    http://thegoldforecast.com/video/2016-unpredictable-and-wild-year

    Jan 01, 2017 01:38 PM

    Excelsior, thanks for the comprehensive performance charts. Almost too many great choices.

    Happy New Year to All!

      Jan 01, 2017 01:49 PM

      Thanks Steele. Stay tuned for a few more charts on the Small gold producers and Gold Development companies up top as well. I tried to get it done earlier in the day on New Years eve, but then friends, adult beverages, and merrymaking got in the way. 🙂

    Jan 01, 2017 01:43 PM

    Timberline Resources experienced a flash crash down to 2 cents early Friday afternoon, before closing the day at 28 cents, with 4x average volume. Have no idea why. Probably HFT elves hard at work.

    http://stockcharts.com/h-sc/ui?s=tlrs

    Jan 01, 2017 01:38 PM

    Battery Storage Poised to Expand Rapidly
    Daniel Cusick on January 1, 2017

    “Energy storage is also critical to solving the intermittent challenges associated with renewable energy. That’s because batteries can smooth the ebbs and flows associated with wind and solar power by supplementing the grid when those resources are not available.”

    https://www.scientificamerican.com/article/battery-storage-poised-to-expand-rapidly/

    Jan 01, 2017 01:51 PM

    Pumped storage – nice. And it can provide ancillary servcies that batteries can’t (frequency response, load shedding, MVars as well as MWs and impoerantly, inertia for the electricity system).

    Jan 02, 2017 02:18 AM

    Australia boosts infrastructure spending as mining boom pops
    Trains, airports and roads to replace coal, iron ore as growth engine

    KAORI TAKAHASHI, Nikkei staff writer – January 1, 2017

    http://asia.nikkei.com/Politics-Economy/Economy/Australia-boosts-infrastructure-spending-as-mining-boom-pops

      Jan 02, 2017 02:57 AM

      For investors that may want to investigate some of the Australian companies in more detail, this is a good resource:

      https://hotcopper.com.au/

      Jan 02, 2017 02:09 AM

      Iron ore and coal have been going great guns here in Oz. Western Australia (which is mining focused) seems to still be in the doldrums. Perth, the capitalof WA has 20-30% vacancy rates in the CBD for commercial property. It’s still got a while to turn around.

      Hotcopper is a great site

        Jan 02, 2017 02:41 PM

        Real estate prices in some Aussie mining towns is down 85-90% from the peak of the mining boom.

    Jan 02, 2017 02:52 AM

    Here is a longer term Platinum:Gold ratio chart that shows just how far undervalued the Noble Metal is to the Yellow Metal. Typically Platinum trades at a premium to Gold in the 1.2-1.6 range, so a return to that mean makes sense, and there are not that many companies participating in this space to capitalize on that arbitrage.

    http://stockcharts.com/h-sc/ui?s=%24PLAT%3A%24GOLD&p=D&st=1990-01-01&en=(today)&id=p94318212452

    Jan 02, 2017 02:11 PM

    2016 Annual Performance Charts for some key Uranium Producers and Developers

    (couldn’t load $ERA.AX $PEN.AX $TOE.AX $BMN.AX in from stockcharts, $GXU only had partial year)

    $CCJ $ARVCF $PALAF $UUUU $URG $DNN $UEC $URRE #URA(this is the ETF) $URPTF

    http://stockcharts.com/freecharts/perf.php?CCJ,ARVCF,PALAF,UUUU,URG,DNN,UEC,URRE,URA,URPTF&p=5&O=011000