Results of the election in Greece have the potential to affect the market

June 16, 2012

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In this show Al discusses:

  • Segment 1 – Al opens the show with Ellis Martin discussing their respective views on the global economy and investing.
  • Segment 2 – Jim  Letourneau discusses the energy sector and potential implications of the global economy.
  • Segment 3 – Lawrence Roulston says the world will muddle on.
  • Segment 4 – From the Far East Grant Williams discusses the European situation and investing.
  • Segment 5 – Eric Edwards, President of Lupaka Gold, provides an update on his company.
  • Segment 6 – Al and Rick Ackerman take a break from financial issues  and discuss politics, specifically the November presidential election.
  • Segment 7 – Chris Anderson of GreenLight Resources explains why the Frasier Institute just named eastern Canada as being the best place in the world for  mining.
  • Segment 8 – Al, Chris Anderson and Cory Fleck discuss a potential solution to the European crisis involving gold as reported in Canada’s Globe and Mail and The Telegraph.

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Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

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    Jun 16, 2012 16:54 AM

    HERE WE GO AGAIN……..REAL ESTATE…..SUPPLY AND DEMAND… order for prices to rise, it will take demand, and an income to support the debt or loan,
    There is ample supply, in fact there is an oversupply of products, and that is the cause of lower prices…..(and a glut of over sized units)
    AS I have said before, it takes two people to create a deal…a buyer, (which is in control at this point, a buyer with no money, no job, and plenty of used product,)and seller.
    Price go up by inflation, or under supply of a product,and more buyers than product
    (supply/sellers)…..There is an over supply of foreclosures, bankruptcies, and lack of income jobs, to support the current market prices.

    The point most of the experts forget, is the fact….
    a. there are 75 million baby boomers, who are selling or seller, and have more house than they need.
    b. there are 40 million gen.x,or y, which are the potential buyers, for the baby boomers to sell to.
    c. baby boomer, are the sellers, and xand y are the buyers….
    d. there are more sellers than buyers.
    e.when there are more sellers than buyer, supply and demand ,
    prices go DOWN, not UP….
    f. the future of this turn around will take longer than 5 years….
    you have to ask yourself ,,,,,when will the buyers outnumber the sellers…
    this is the point at which demand…..will cause prices to go up…..
    It will take an income, and a good job…(not hamberger flipper low paying
    service jobs)….to support debt(loan), and an increase in the number of qualified BUYERS,
    AND the numbers of qualified BUYERS ,,,is less than the amount of SELLERS.,
    this is not going to change overnite……

    Rental real estate…..investment…..find a qualified tenant, one that will pay your debt., and take care of your property…good luck…., a qualified tenant is a person who
    respects you and your property, these are very few in number….this is the problem for a landlord, (ask some of the other guest) .
    ANYWHERE, USA…00000(the amount of increase you may expect to receive)

      Jun 16, 2012 16:25 AM

      Morning In the Box,

      I have never made serious money in the real estate market.

      Here is my take on Big Al’s situation.

      I am in my sixties and fortunately Kathy and I have a couple of bucks. (All of which we made in the resource industry ie: stocks.)

      About a year and a half ago, I decided to take some money off the table. We did that and purchased a second home pretty much for cash.

      Our home is pretty unique. Very nice single story on the sixteenth hole of a great golf course. We look across the fairway and when the trees are not leafed out we can see water and then Canada. In our area homes like ours were selling for about twice what we paid for it about six months earlier. You could eat off the floor when we bought it.

      My rationale was that now we had two homes in the area. The smaller one is rented out to a fellow who works with us. He falls into the category you outlined above for a renter.

      So Big Al now has two great homes to leave to his kids as my father in law left for his kids.

      In the case of this portion of our estate I don’t really much care if they appreciate in value or not.

      What I care about is that in twenty of thirty years they will each provide a nice chunk of change for our girls after they and their families have had the ability to utilize them as vacation homes or what have you.

      Of course, the rest of our liquid assets are in various aspects of the market as I have stated in the past. (The majority of our assets I might add.)

      I am comfortable with the real estate portion of our portfolio because it provides usable utility for our family.

      Would I have all of my assets in real estate? Nope, of course not.

      What I have done is certainly not right for everyone, but as the saying goes I am sleeping well at night. I do realize that my liquid investments provide me with that ability!

      As an old friend of mine who was a very successful real estate broker once told me, “you buy real estate for enjoyment, quality of life, etc. and not to make money”.

      Big Al grew up in a two bedroom apartment and is enjoying his surroundings.

      Thanks for your comment. As you can see, I don’t necessarily disagree with you. My motives are just different!

      Big Al

        Jun 16, 2012 16:31 AM

        Off Track Betting…I have to agree with you.
        Correct valuation of residential real estate is based on rental value.
        Developers and Sellers are currently asking on average double of more of the going rental value of assets. This just tells me the properties are still over priced.
        Because you may eventually find a greater fool does not mean you are a wise man.
        A for instance.
        A developer overpaid 238,000 for an undeveloped lot . A house was built. My wife and I looked at the property when it was listed in 09 for 575,000. The property leased for two years at 2,750 per month. Was vacant for 1 year and sold recently for 425K. It is my assessment that the 425K purchaser overpaid approximately 150K. To be worth your while an investment property should competitively return 1% of the amount invested.
        The property was difficult to keep rented at 2750/month.
        One might say $2750 was a stretch. But let us assume $2750 was fair rental.
        That would mean based on rental value and applying the 1%/month rule the property value in approximately $275,000.
        The above example can be criticized an anecdotal….however a little research will demonstrate it is a common example not limited by region….and on a percentage basis not limited by category of house.
        With historically low interest rates what will happen to the “value” of housing when the interest rates inevitably rise?
        OTB correctly points out the demographic stress a baby boomer will have selling a McMansion. Put on top off that higher interest rates in five years. Put on top of that a hair dresser, tattoo artist and/or a greeter at WalMart do not constitute a qualified buyer unless they all go in collectively further compounding the demographic dilemma.
        For certain there will be markets that will perform well…but in a credit contraction the general rule should be do not invest in things in which borrowing has currently bid up the price.
        As this country learned in 1929, the early 30’s and to a lesser extent the last four years leverage works both ways.

          Jun 16, 2012 16:59 AM

          Morning Dennis M,

          I am clearly out of my element in the real estate sector.

          I pretty much outlined my rationale in my response to In the Box.

          I learn from folks like yourself and that is makes this site so valuable.

          Okay, so some might say my real estate purchase was perhaps not prudent from a financial standpoint. That’s okay for me in this instance.

          I guess that I need to start paying tuition to you folks!

          Seriously, I appreciate all of your insights!


          Big Al

        Jun 16, 2012 16:06 PM

        Hello BIG AL…..Thanks for the reply…..
        I always enjoy the weekend show and guest..
        I certainly appreciate your view concerning the parcels which you
        purchased, and the reason for such purchases……
        I understand your thinking on diversification of investment types.
        My thoughts on the purchase of real estate as an investment, at this very moment
        in time, is not favorable. I think your real estate purchases make good sound
        diversification in your situation….the down side risk of your purchases look
        minimized. And since, you have a built in edge, in the rental to your employee,
        further minimizes the down side risk…so, your investment looks fine to me.
        Ownership , more often than not, makes sence., for all the reasons, everyone has
        So, my friend you are diversified, have shelter, and an income stream….
        this is a sweet deal…….keep up the great work….

          Jun 16, 2012 16:29 PM

          Evening Out of the Box,

          Thanks for the reply.

          All I know, man, is that I am comfortable.

          Big Al

      Jun 16, 2012 16:19 AM

      Jerry and Big Al,
      Jerry, you hit the nail on the head. Good renter is an oxymoron.
      Dont forget property taxes and association fees, skyrocketing.
      Big Al, Looks like the area that you purchased in has gone down 3-5% in the last year, this does not take into account the 6% it will cost you to sell, remembering that real estate is NOT liquid. Ok, you can write off expenses and depreciate your rental property, but heck who wants to write a check each month to support a declining investment? I suggest to the readers not to catch a falling knife, but rather wait for the turn from the bottom, kind of like purchasing stocks.

        Jun 16, 2012 16:06 AM

        HI Bobby,

        You should congratulate me. I can sell our little unit for about $25K less than I paid for it. After that I would still have to pay costs. What a deal, huh!

        Seems to make more sense to bite the bullet for awhile.

        Oh well,

        Big Al

          Jun 16, 2012 16:01 AM

          Congratualtions BIG AL!
          Hey it could be worse, in many parts of California that 11% of your home value could be a $110,000. loss.

            Jun 16, 2012 16:56 PM

            Oh yeah, Bobby, it sure could.

            It’s kind of funny. On paper we are even in real estate but in reality, well you know the story!

            Big Al

        Jun 17, 2012 17:54 PM

        Bobby,….thanks…always glad to hear from you… was your fishing trip to the KEYS.

    Jun 16, 2012 16:47 AM

    I’ve owned rental properties in the past and have gotten rid of all of them before the crunch came and did nicely on my investment . In fact, 1 one hundred unit complex was offered back to me for purchase by the bank that foreclosed on the 3 guys I sold it to from New York city area. They were involved in REITS and bought in for a price that I knew wouldn’t come close to cash flowing. Anyway, the bank offered it back to me for one-third of what I sold it for. I still have a one family house (no note on it) that I’m renting out to a unemployed single mom and can’t bring myself to sell it since it would displace her from a situation she needs she needs to be in. She misses on her “low” monthly payment once in awhile but I look at it as another way I can help someone and return something to society. I also own one office building yet that one of my businesses rents (although we’re moving since we’re growing) and have a second home in a vacation area I can’t bring myself to sell. Would I buy more real estate in this environment. Absolutely not. I wouldn’t primarily because of my age. I don’t need the grief anymore and I won’t be around to see it increase in value. I, however, would consider real estate if I was younger but would be very selective and careful today because of the deflationary environment. I’ve been tempted to buy in Florida because of all the great deals but renting at my age is so much easier. For those pushing real estate today, I believe they’re not considering the fact you will probably not see the increasing value of real estate we saw in the past again for years.

    Jun 16, 2012 16:01 AM

    Hi Big Al.
    Thanks for your weekend show. I agree with Mr. Raulston. So Greece drops out of the Euro, defaults on its debt. Goes back to the Drackma. A Greek person works all week and gets his paycheck in Drackma’s. What does a Drackma buy in the world? Not much. Who wants Greek Drackma’s, no one. Not me. Greece is bluffing about leaving the Euro zone. And let them leave if it is not a bluff and be the sacrificial lamb for the rest of the countries, to shape up, or suffer their due fate. Best to you.

      Jun 16, 2012 16:03 AM

      Morning Keep Stacking,

      What a stinking mess, huh!

      Big Al

      Jun 16, 2012 16:17 AM

      Where is Irish Tony? He is a poker player I think and he may know is Greece is bluffing.

        Jun 16, 2012 16:07 AM

        Hi Keep Stacking,

        Poker player?

        Haven’t heard from him for about a week and I am hoping that he is okay.

        Big Al

    Jun 16, 2012 16:02 AM

    Morning Doc,

    You have summed up my thoughts to a tee. (Particularly the one about the single mom.)

    Let’s do some radio this week!

    Big Al

      Jun 16, 2012 16:47 PM

      Good, just let me know. I’ll try to send you a picture one of these days—I’ll have my daughter take it since she’s into photography. I’ll have to find a tie som where since I haven’t worn one for years. I notice most of your contributors look pretty professional. Nice hearing from you.

    Jun 16, 2012 16:06 AM

    Big Al,
    Hey guys, just my two cents – real estate is all about timing and location, location and location. San Diego just happens to be a mecca for singles and fun – especially in the beach areas. However, with that said, there are A LOT of people having fun and working hard (being responsible). The job of a landlord is too find them. For the most part I do. As you guys probably have figured out, real estate is my sector to be in, besides, OF COURSE, PM’s and resource equities. Just for me and my family. Real estate has BEEN VERY GOOD to us. It make up the majority of our assets – by far. Fortunate for sure. Would I buy now? Of course, but that is just me and my location. I am looking actively and being VERY SELECTIVE. The ‘lower end” market is moving now. Low end for SD is 90 to 150k.(I can’t believe that number – really low, for us WOW!) Pay cash and collect rent at 800 a month (approx). Can you get a HARD ASSET like that and make a nice return? Nope. Would I put 100k in paper assets and expect that type of return? Nope. Good tenant pickins, nice return, and a “non-paper” asset. That’s what I consider a good, solid and RELATIVELY sate investment. Is there risk – absolutely! But the risk/reward relationship is too good to pass up!
    All the best,
    P.S. All you guys are the BEST and I respect all of you. Thank you for all of the insight and brains you guys are so generously giving!

      Jun 16, 2012 16:15 AM

      Morning Marc,

      Your comment shows why you are a pro in real estate and I am a gnome! (I still really do like my home, however!)

      Big Al

        Jun 16, 2012 16:27 AM

        Big Al,
        You are too kind. I have made mistakes, but, like all of us, we are surviving. Hey, I am learning the resource sector from pros like you all. Thanks.

    Jun 16, 2012 16:13 AM

    Here is a link from our friend Harold in Germany.

    Harold, many thanks!

    Big Al

    Harald Schlichting

    3:38 AM (5 hours ago)

    to al

    Greetings from Germany

    Jun 16, 2012 16:16 AM

    And, another from Harold,

    Harald Schlichting

    12:52 AM (8 hours ago)

    to Schlichting_Ha.
    Greetings from Germany
    Dok1.doc Dok1.doc
    38K View Download

    Jun 16, 2012 16:47 AM


    Have you ever added air to a tire only to notice soon after it looked low again.
    In a sound environment you take the car in and fix the leak.
    Could be a nail…a bad valve…bad seal…who knows except something is wrong.
    This scenario makes me think of our economy.
    When is school I did not have the money to properly repair a slow leak that developed. I decided to keep adding air every now and then instead of repairing the tire properly. This allowed more money for beer. It did not correct the inevitable.
    Adding air when low perversely gave me the feeling I actually fixed the problem.
    All I had done was lie to myself. I avoided a responsibility in favor of instant gratification. Regardless of the Euro problem of the day….on Monday and Tuesday the pundits will be calling for the Federal Reserve to put air in a tire with a slow leak.
    We all know what we should do is repair the tire.

      Jun 16, 2012 16:54 AM

      What an intelligent, descriptive analogy – Dennis! Thanks! And, of course, right on!

      Jun 16, 2012 16:12 PM

      That sir is a really great analogy! It is so true!

      Big Al

      Jun 17, 2012 17:32 AM

      Maybe even give it a re-tread. (do they even do that anymore?)
      Great analogy Dennis.

        Jun 17, 2012 17:18 AM

        Hi John W,

        I actually don’t think that retreads exist anymore.

        Big Al

    Jun 16, 2012 16:52 AM

    Big Al,
    Section 8 was a very informative, intelligent conversation on basically, a “quasi gold standard”. I think in the end, that WILL BE the most viable solution available to us – generally speaking. But, like one the guys inferred, it doesn’t get ANY PRESS in the U.S. because its a “DAGGER in the HEART” of irresponsible, manipulative and incredibly “child-like” behavior of management of the U.S. dollar that once you to be thought of “as good as GOLD”. What a joke that has become! And a damn friggin sham and a BIGGER SHAME!

      Jun 16, 2012 16:10 PM

      Yup Marc!

      Big Al

    Jun 16, 2012 16:59 AM

    Al: Ellis and you discussed Real Estate and it is still very risky. I believe Real Estate still has considerable decline to come. There are many problems with real estate, but for the immediate future, 1 to 3 years from now, my biggest concern for any kind of real estate in the sectors of residential, industrial, commercial and business it Taxes. Governments know that it is impossible to move or hide real estate, that enables them to use the value of real estate as a source of money.

    Americans do not really have private property any more. People living off government checks see private real estate as a source of public revenue, this is especially the case when other tax revenues decline. The direction of what people consider as private property is becoming more and more viewed as public property. Decisions in the courts, Federal, State and local governments are increasing the restrictions of the use of privately owned real estate into the direction of public property.

    Socialism is taking over the US, and in fact the major cause behind all problems in the US during last 40 plus years is increasing socialism. We are not alone as other nations suffer the same disease, but I for one do not want to be part of the misery loves company crowd.

    The only kind of real estate that I consider having value are things like farmland, timberland, resource land like mines and minerals, energy or the like.

      Jun 16, 2012 16:09 PM

      Thank you Clay.

      I really like your observations about socialism!

      Big Al

    Jun 16, 2012 16:36 AM

    From expectedreturns:
    Europe is on the brink and it is going to seriously effect gold prices. Spain’s 10-year bond yields rose to a record high of 7% while Moody’s cut Spain’s debt rating to the brink of junk territory. The handwriting is on the wall.

    I recently talked to someone who spent his career involved in the mining industry. Very intelligent guy with connections around the world with government officials etc. So I was picking his brain, and everything we fear is more or less going to occur. He told me China is in the process of building a gold storage facility that is 3x the size of Fort Knox. This would make China by far the largest holder of gold in the world and allow them to back their currency with gold.

    China is also apparently selling gold to its citizens but they are not accepting dollars in exchange. They are allowing their citizens to build wealth because at the end of the day, China is most scared of their own people. So their interests are aligned with their people’s, at least economically. This bodes well for China in the future.

    He also told me that our leaders know what’s coming, and there will be no safety net for people. This is one of the reasons why he believes in cash-flowing real estate. Also he believes in physical ownership of everything, whether it’s gold, gold mines, or farmland. This is the key to the future we face.

    Remember that when it hits the fan, it will come suddenly. Dollars are overvalued now, and it is absolutely critical to get your money out of the banking system. The global banking system is created in a way that we hold each others’ debt in a Ponzi Scheme-like arrangement. Banking pressure in Europe will affect banks in America. Gold is already on the move, so here’s your opportunity to build your position.
    Disclaimer: 1. This newsletter is for informational purposes only. I am not a registered investment advisor and I am not responsible for any actions taken by subscribers.

      Jun 16, 2012 16:36 AM

      Dear Paul R.
      As an active and ardent support of this site, that is a very, very clear picture of WHAT I believe is going to happen with and regarding China. I even lay in bed, not worried, mind you, but just kind of evaluating what must be going through the Chinese leaders and people heads nowadays. If I had to lay out or visualize a scenario – what you just said – is what I would envision. And, with that in mind…have situated my families assets, exactly what you just described. Am I right, heck I don’t know, only because I don’t know the future. But, my bet is that China is going to be the “alpha male or ‘lead dog” much, much sooner than anyone could ever imagine!

        Jun 16, 2012 16:37 AM

        OOOPS, I am sorry..Paul L.!

        Jun 16, 2012 16:52 PM

        HI Marc,

        I completely agree with your comment about the Alpha Male!

        Big Al

    Jun 16, 2012 16:44 AM

    Remember when it comes to realestate Uncle Sam is a participant in the transaction. He is charging 3% transaction tax on the sale I believe as of 2012. So your sales transaction costs are closer to 10%

      Jun 16, 2012 16:52 AM

      Thanks for reminding me, Larry!

      Big Al

    Jun 16, 2012 16:56 AM

    Dear Big Al

    For all your hard work and dedication, I would like to honor you and another fellow of the industry – Peter Grandich! Please click on the link and enjoy!

    I apologize for the amateur work.

    Happy Father’s Day!

      Jun 16, 2012 16:06 PM

      Mr. Alan,

      Your did not make my day, my friend, you made my year! And, I am not joking.

      God Bless you!

      Big Al

        Jun 16, 2012 16:52 PM

        You Big Al, Sir…Are always welcome!

        Have a great weekend!

          Jun 16, 2012 16:40 PM

          Mark, good to see you posting again. I missed your comments.

            Jun 16, 2012 16:02 PM

            Howdy Doc!
            I’ve been really occupied lately with some serious family issues and just got more bad news on Thursday. I’ve learned to never ask; “How much worse can it get?” Big mistake. I like being back, but I won’t be able to come on as often as I like, but maybe in the next week or so.

            I have, however, been logging on to see what you are posting. It’s one of the first names I look for.

            Jun 16, 2012 16:32 PM

            HI Mark,

            We are praying for God to support you and your loved ones. (I have to say that I will bet that he already is!)


            Big Al

      Jun 16, 2012 16:27 PM

      OK. Everybody who hasn’t clicked upon Mark’s link must do it now. Wow! I come from a family of a few artists Mark…you’re quite good! Excellent tribute, and nice blog too, if I may say so.

        Jun 16, 2012 16:51 PM

        Thank you John W!

        I am trying to get my groove back. I hadn’t picked up a pencil in a couple of years and the last time I did was in late 2009 – early 2010. Before that….probably seven to nine years before I really drew anything. I have worked in the medical laboratory for the last eighteen years of my life, with drawing completely thrown out the window. I never took any courses, as I’m self taught. I have a LONG WAY to go before I achieve realism, but maybe with time I can.
        I really appreciate your words though John…THANK YOU!

      Jun 16, 2012 16:55 PM

      Accurate comments. I have been following Grandich’s good advice since 2009 and most recently discovered Al’s site and follow it daily too. Some of the best in the PM area and for general market advice.

      Jun 16, 2012 16:20 PM


    Jun 16, 2012 16:11 AM

    Mark A.,
    Amateur?! Rubbish….you have really outdone yourself. What a pleasant surprise and real revelation of your vast writing and artistic talents…my good friend. Very enjoyable and need, I say, a demonstration of generosity in time, resources and artistic mastery.
    All the best,

      Jun 16, 2012 16:50 PM

      Thank you kind sir!

      But I am still an amateur and have a long way to go. I sure hope Big Al likes it…gulp!
      Stay frosty Marc! Hope you are having a great weekend!

        Jun 16, 2012 16:40 PM

        You, Mr. A don’t strike me as being even close to an amateur!

        Big Al

    Jun 16, 2012 16:22 AM

    Wanted to comment on Greece leaving the euro, just a possibility, but what happens if Max Keiser and Hugo Price are successful at geeting Greece to mint silver drachma?
    I think that would make greek coin the most sought after in the world.
    I know its gotta be a longshot but maybe Mr. Price being the multi bizzilionare he is has a modicum of influence. Ya never know.

      Jun 16, 2012 16:45 AM

      The whole deal with Greece is about the derivative unwind that its departure from the Euro would trigger.
      Greece already had what I call a “non-default default” because to call their default what it was would have triggered an unknown but immense derivative unwind.
      If it actually departs the Euro there are no semantics….no sophistry that could call it anything but what is. Unknown but immense amounts of derivatives…CDO’s and CDS and more exotic bets will unwind. We will find many banks….. plumbers unions and maybe even the wine making Blue Nun nuns wiped out financially. The volatility even little old Greece tees up demonstrates the unstable nature of the over leveraged financial world in which we live. Our world of high finance amounts to a gray hair old lady standing in front of a slot machine with her last dollar hoping for three cheeries or she will have to climb back on the bus early. The big difference is the little old gray hair lady is only playing with her money not the entire world’s financial system.

        Jun 16, 2012 16:51 PM

        Great analogy Dennis M!

        Big Al

        Jun 16, 2012 16:05 PM

        Great analogy, Mark M!

        Big All

    Jun 16, 2012 16:26 AM

    ok, I’m a dreamer, but I’m also rooting for that group of lawyers to nail the republicans for their corruption against Ron Paul, I think its possible they win too.
    I’m still cheering for the good guys.

      Jun 16, 2012 16:53 PM

      HI benb,

      You gotta cheer for the good guys! Everybody else is just taking us down a very steep slope.

      Big Al

    Jun 16, 2012 16:53 AM

    I just listened to the last segment, I think I posted that info here a few days ago.
    I didnt know it hit a newspaper, I dont read them often or get my news from tv as I consider it propoganda. If I recall from Bill Still’s the money masters its the same people owning just about all media in the west. If so, they know the reason its not in american papers yet. Some people believe that this gold backed bond or eruro is a german move to aquire europian gold, even still, the americans might be obliged to back a bond or treasury of theirs in gold. Looks to me we are moving back to gold, much easier for the powers that be to manipulate. I will call my reasoning “fundimental” analysis over t.a. I just think were going to gold, I think they need gold in china, how much I dont know but there is enough in europe,arabia,the u.s. india and lots of smaller countries recently have picked some up, I might be crazy but i believe it has to do with how much is in china. Very interesting this news hit msm so soon.

      Jun 16, 2012 16:49 PM

      Hi benb,

      Yep, interesting about the msm putting out this story. What I do find interesting is that it apparently was only in a couple of dailies.

      Big Al

        Jun 16, 2012 16:15 PM

        Maybe its intended to filter thru u.s. as opposed to blurting it out. Some people in the u.s. get canadian news.
        I find the canadian gov. hard to figure out somtimes, the u.s. news I figure is all lies and therefore easy, canadian is kinda half truths. for example awhile back they told canadians we getting ride of the penny, 1 reason was that it had lost 95% of its value, ok I said what about the 100 penny pce? no one I met had put that together, they knew full well people wouldnt get it, half truth stuff. Happens all the time here, sorta, we gonna screw ya but we gonna give you clues first. This info about gold backed bonds or whatever they decide being told to canadians could be a clue their giving to the canadian people. BUY GOLD. just a guess tho.

    Jun 16, 2012 16:02 PM

    As to Real Estate, as a broker, I view it very simply, you buy a home to live in not for investment, otherwise if you buy to rent, your in business, which requires time and effort to do right. Appreciation is your best friend along with your ability to raise rents and keep vacancies/turnover low, while maintaining the property. This present economically uncertain environment would make me nervous to jump in now, especially when I hear rumors of another 15-20% drop in future values. Has anything really changed since 2008. We still have Freddie and Fannie operating unfazed and we still have loads of inventory from foreclosures, the banks would love to unload and we still have no movement in wages or employment to sustain sales.
    As for gold back currency, the sooner the better. The US should get ahead of other countries and do it first, then you would really see things take off, but that will never happen because our government is committed to Keynesian fiat hyperinflation.

      Jun 16, 2012 16:46 PM

      Afternoon Glenn,

      Great comments. I guess I let the cat out of the bag earlier this morning when I admitted my ignorance in your field.

      I do like your comment about buying a home to live in!

      Big Al

        Jun 17, 2012 17:48 AM

        Al…..ignorance is ignoring , when you know, now you know, now you are not ignorant..

          Jun 17, 2012 17:09 PM

          Hi In the Box,

          Certainly can’t disagree with that statement!

          Big Al

    Jun 16, 2012 16:09 PM

    With China buying all the gold that is available under 1600, I believe they have put a solid floor on the gold price and with their holdings increasing by thousands of tons per year they will protect their investment by not letting the gold price fall through important support levels like 1530 even with bullion banks and the fed shorting massive amounts of paper gold, They will convert as much dollars to gold and as soon as they can. China may even look at acquiring major producers like ABX so they can take all the production off the market.

      Jun 16, 2012 16:44 PM

      HI Paul L,

      There has definitely been something going on in that regard in China for at least the last 5 – 7 years! I remember discussing it at the last Gata Conference in Washington D.C.

      Big Al

      Jun 16, 2012 16:57 PM

      I think it was at about $1000 that I heard the chinese gov. tell their people to buy gold, I remember thinking they would not let it drop bellow that as if it did they would loose face. Maybe then $1000 was the floor now $15-$1600?

    Jun 16, 2012 16:43 PM

    “As for gold back currency, the sooner the better. The US should get ahead of other countries and do it first, then you would really see things take off.”

    I do not doubt so much that the US does not still have the Gold in Fort Knox , West Point and the Federal Reserve Bank of NY…..what I do question is whether the US possesses that gold unencumbered. If not the US cannot back anything with already spoken for Gold. If we even aired a trial balloon any already spoken for gold would start a line. We would have the equivalent of a new gold window. It would be as if de Gaulle returned his French Destroyer to NY Harbor requesting gold delivery.
    Paul L. I agree with you it would be a great move on our part if we did restore a gold standard. It leads me to conclude we cannot because even if we possess it… it may be already committed….some say more than once. I must be that the fiduciary loyalties of Treasury and the Federal Reserve are directed to someone/something other than the citizens of the United States. This may explain all the secrecy. I never thought much of Ron Paul’s request to audit the Gold Reserves….the fact that they have not been openly audited on a regular basis in such an audit happy world such as ours speaks volumes. Think about it the government that jails people for less has not come clean during my entire adult life. Disney World was opened Forty years ago offering a whole new scale compared to its sister park Disneyland. The much hyped illusory offering brought fanciful fantasy festival farce for all to enjoy. The US government beat them to it.

      Jun 16, 2012 16:42 PM

      Great comment Dennis M!

      Big Al

    Jun 16, 2012 16:38 PM

    After market activity way up. ABX, NGD, NEM, GG, IAG each have millions of shares sold after market Friday. Heavy accumulation maybe for the start of the next uptrend and seasonal strength starting July. Maybe big short squeeze coming in the euro as I think the commercials were long big time. Gold short squeeze possible too. Commercials have a massive short position in gold.

      Jun 16, 2012 16:39 PM

      Afternoon Paul L,

      Monday morning will be one of the most interesting in a long time!

      Big Al

    Jun 16, 2012 16:43 PM

    All these conversations wear the blinders of our current financial orthodoxy. Debt of countries bring the whole system to its knees when countries authorize the use of such a system? 1 + 1 = 2?


    “An impressive and highly informative book, exactly right for its time. Bill Still explains the fundamental flaw at the heart of our debt-based money system, and how to eliminate it. With a background in journalism, he brings passion, honesty and an exacting attention to historical detail, and so makes the reader feel the urgency of this central question for every nation. The international perspective shows unarguably that the problem is global. The book is also bang up to date, and with HyperScan technology it can remain so.” – Dr. Bob Welham, Bristol, UK

      Jun 16, 2012 16:55 PM

      Afternoon MissiveDuTexas,

      I have spoken with Bill in the past as you are aware. I really need to invite him back on the program. He is a good guy.

      Thanks for the reminder,

      Big Al

    Jun 16, 2012 16:56 PM

    That would be great. I’m surprised you didn’t get a high degree of heat for that first interview. The MSM, and it seems like even some alternative medias, will not have him on.

    When you do speak with him, would you mind asking his thoughts on Ben Franklin`s text?

    A Modest Enquiry into the Nature and Necessity of a Paper-Currency by Benjamin Franklin (1729)

      Jun 16, 2012 16:53 PM

      I will call him this week,

      Big Al

    Jun 16, 2012 16:08 PM

    I for 1 really like and admire Mr. Still’s work, I would like his opinion on what he thinks the banks are going to do next.
    Saw an interview the other day, (naturally forgot his name) with a gentlman that had somehow gotten in to the builderburg meeting. He would only say that Ron Paul scares the poop out of them. Nothing else really, for what its worth. That and a dollar gets ya a do nut I suppose.

    Jun 16, 2012 16:59 PM

    Hi Al,
    Greece today, Spain tomorrow etc..The bottom line is the would is in financial chaos and gold and silver will protect your savings far better than the conventional stock market.

      Jun 16, 2012 16:36 PM

      Of course I completely agree with you, Karen.

      Big Al

    Jun 16, 2012 16:37 PM


    Just returned to sunshine and warmth after being on the cold and dreary side last week.

    Your discussion with Cory and Chris Anderson on some type of fractional gold standard for the Euro somewhat resembles Arnold Bock’s theory for a two tiered world wide monetary system: one being used only for in country transactions and the other for international trade and settlements.

      Jun 17, 2012 17:16 AM

      Morning Dai Uy,

      I brought up this subject because I find the concept to make some sense. I mean, what else can they possibly do at this point?

      Big Al

    […] parlors to get city licenses. An ordinance scheduled for a … Read more about Tucson CitizenDelaware Home approves gambling expansion The bill, that was approved about 29-to-8 vote plus today …ves-gambling-expansion">Bloomberg Businessweek Mesa mulls licenses for off-track betting sites Mesa […]

      Jun 17, 2012 17:12 AM

      Can you elaborate a bit on this.

      I assume that you are talking about legalized gambling in the state of Delaware.


      Big Al

    Jun 17, 2012 17:27 PM

    If you like the globe and mail you should pick up a national post…by far our best national paper.

      Jun 17, 2012 17:13 PM

      Thanks for the opinion, Conservative Canuck

      I will definitely start reading it also.

      Big Al

      Jun 17, 2012 17:41 PM

      They’re both good, but I’d give an edge to the National Post.

    […] The Korelin Economic Report. Rick and Al took a break from financial topics this time and instead discussed the November elections. (Rick’s segment is #6). Next Hidden Pivot Seminar: August 1st-2nd Save $50 when you […]

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    Oct 18, 2012 18:28 PM

    I tried to change my profile picture, i selected a random image and it started loading but it never completed. Yes, i’m talking about my Avatar/Profile picture which doesn’t responds. Even if the loading gets completed, the profile picture does not shows..
    Help me please

      Oct 19, 2012 19:53 AM

      Sorry SuperBusa,

      I am about as technologically backward as you can get.

      Send an e-mail to Sarah at


      Big Al