Let’s trade ideas. Beginning today we will offer ideas (not recommendations) on investing.
I have decided to offer ideas on investing in the hope that you will all reciprocate with your own ideas.
Remember this is not investment advice and none of our ideas will be paid for. Straight up and no ulterior motive.
Our theme for the year is “working together” and I believe that this is a great way to begin.
Click download link to listen on this device: Download Show
Thanks Karen,
That will probably be a purchase for me in the near future.
I appreciate your comments.
Best,
Big Al
I like CEF a lots have had it for awhile. I should have taken a profit a whlle back an bought back in. It being a closed in fund you can buy it on aday when it is moving down and get it at discount. I agree with Rog it is a great fund. Enjoy your great progran. THANKS.
Thanks for the comments Doug.
Ian has been doing a great job for a long time time. He is a very astute individual.
Best,
Big Al
I believe that both CEF and PSLV (as well as PHYS) are consider “passive foreign investment companies” (PFIC) by the IRS. I have perused the user unfriendly IRS instructions for PFICs and found them perfectly unclear (http://www.irs.gov/instructions/i8621/ch01.html#d0e138)…..Can you clarify the tax implications for these PFICs in one of your broadcasts?
Morning Tex,
I will deal with this question today.
Best,
Big Al
Regarding physical metals, try pawn shops for purchase! I went into a pawn shop and the guy was saying that he sells all the silver he gets at about 70% market value, (I’m not saying to who) and had sold 500k worth last year!…so if we all go to hock shops and offer more than 70% up to spot price, than we can save versus buying brand new silver (and perhaps gold). Of course we would have to recognize maples, eagles and bar brand names, but lets all save while building wealth!
Good Morning Conservative Canuck,
What a great moniker!
When you say you purchase silver from a pawn shop what form of silver are you referring to?
Thanks in advance,
Big Al
Rog,
Great pic with CEF, Today the premium over spot is US1.4% CA 1.1% This is a great core holding.
See the link for Asset Value:
http://www.centralfund.com/Nav%20Form.htm
Bobby
Ok, tried to post this earlier but I guess it didn’t take.
I really like Ian McAvity, got to talk with him at the recent Hard Asset Conference in San Fran.
He mentioned Pretium Resources as one of the mining companies he likes. This made me feel good since it’s one of my largest holdings 😉
Got an email already from Pretium today letting me know they’ll be trading on the NYSE starting on Thursday. The good news just keeps coming for them, glad it’s one of my largest holdings.
I also like New Gold and Sandstorm Gold, both have done really well for me over the past couple years.
Morning Joe,
Pretium, I believe, has the potential to be a great long term investment. A friend, by the name of Laura Stein, introduced us to the company a number of months ago.
Regarding New Gold, as you are aware it just purchased Silver Quest Resources. I owned Silver Quest and because of that transaction now also am a shareholder of New Gold. That was one of my better transactions last year.
I will look more closely into Sandstorm Gold.
Thanks much for the input,
Big Al
Pretium has moved up nicely the last couple of days, its nwe listing on the NYSE will really propel it, IMHO. I credit Bob Chapman for the tip.
Same here, Bobby, but I heard about Pretium first from Trader Rog (can’t remember if it was the Korelin Report or Jay Taylor’s show). I then heard about it from Bob Chapman and then shortly thereafter I heard Bob Quartermain talk about it on Jim Puplava’s podcast. That pretty much pushed me to buy the stock.
Al,
Sandstorm his headed up by Nolan Watson, former CFO of Silver Wheaton.
Same business model, streaming, but with gold.
They’ve invested in some good projects and at least 4 of them are going into production this year. Sandstorm should be start realizing some serious cash flow by end of year.
Big Al and Rog –
Got into CEF from your site about 6 months ago – bought at 23.50..were down…SO WHAT. It is a core holding. Also, got into Sprotts stuff at the same time. Thanks so much for all the information and continued success!!
Marc
BTW, I got out of relatively high paying muni-bonds in CA about a year ago. I dont care what anyone says those are not safe. But giving a nod to diversification, Big Al, I threw thousand of dollars into the FRANKLIN Utilities fund about a year ago. As a stable, income producing play I am really happy with it – pays about 3.5 to 3.9 a year and the utility bond has rose in value a couple thousand bucks. What safer play is there than utiities! That is about as close I will get to the stock market:) Oh, I have one corporate bond fund from that absolute GIANT GE..Again paying 3.5 percent. It makes up a small portion of my investment portfolio but it produces some income and is stable. GE is a global monster!
Marc
Finally, everybody should really check out SILVER WHEATON…that is a core holding of mine also…I think it is the “AMAZON” of silver stock plays…great business model and they have LOTS of contracts locked up with miners to buy their by-product silver when mining other metals…I think their contract price is $4.00 an ounce! Plus, the have no production/mining fixed or variable costs!
Definately a MUST have stock.
No question about Silver Wheaton, Marc.
Big Al
HI Marc,
Yep, diversification is the key to increased safety.
Regarding the CA muni-bonds, I would say that everything goes down to nothing if those bonds do. I’ll bet they are paying a great yield.
Thanks for the input,
Big Al
Al and TR:
I read something a few days ago which got my attention on PM’s and the possible downside on physical PM’s if true.
As I understand it, stocks and funds and other PM investment vehicles are subject to the long term capital gains rate of 15% but if one is in the physical realm, capital gains could be as much as the highest rate at 38% which would not affect this small investor(me).
Any thoughts?
BTW: for someone who professes not to give investment counsel because of SEC rules and regs, you both do a pretty damn good job…so far…LOL…your fundamentals square pretty much with mine…………….for what it may be worth…..
Morning Dai Uy,
Given your background, I am sure that you understand why I personally state that I do not give any investment advice and am not a registered investment adviser.
It is really important, for both legal and moral reasons, to me for folks to realize this. I truly have no ulterior motive. I sell no products and am truly doing this for no reason other than an intense affection for the industry.
Regarding your comment, “so far”, hell nothing lasts for ever and we are all wrong at various times. Can’t change that!
Best,
Big Al
Al……..Just pulling your leg a bit…Your openess, candor, honesty and your disclosures as well as some very good information I glean from this site from all particpants is what makes this such an exceptional blog.
Hi Al and Rog:
Good idea for People to share their investment ideas in a format like this. I specifically look for explorer/development plays who are about to become producers. Or companies
who are already producing and have good growth potential. The management teams
must be ultra aggressive and transparent with their news releases. I simply will sell
any company in this market who is not aggressively proving up resources and telling
everyone in the world about it. Extorre Gold has a very good property, but it ain’t
just the property folks
Morning J.D.,
Nope, it never is “just the property”!
Best,
Big Al
I should further clarify….perhaps even some ETF’s or Trusts may be subject to a higher capital gains rate if they hold physical..any thoughts? anyone? Surely there must be an accountant in this rag tag group…Different in Canada , John?
Morning Dai Uy,
I believe, not sure so check with you accountant, that gold and silver coins and bullion are definitely considered to be “collectibles” and as such are subject to capital gains taxes up to 28%.
Regarding ETF’s and Trusts, I understand that they fall into the same category as securities.
Imperative that you verify this for yourself. I am not a tax accountant. The aforementioned is just my opinion.
Best,
Big Al
I’m pretty sure Al is right, as are you Dai…other assets are taxed at the normal cap gains rate of the country of residence. However, that brings up another question…many hedge funds, investors, etc, at least we are told, don’t invest in gold because it does not generate income or dividends. And yet, if it does generate income, it would be taxed at higher than the (longer term, minimum 1 yr) 15% rate for equities in the US. The perception is that gold could be lose-lose, in an otherwise stable equity market.
But, how many funds or hedgers hold for more than 1 year anyway? And how well have those equities done in the longer-term (where the 15% tax rate applies), versus gold/silver at 28% rate (might even be the old 35%)? Gold’s out-performance of equities over the last decade easily trump any higher long term cap gains rate it would suffer. If you hold shorter than 1 year, equities have the same cap gains rate anyways.
It’s a good point Dai, and I’ll have to check IRS/Canada Rev laws this year when doing taxes…perhaps bullion held with a legal tender face value can be viewed as just money, but unless it was bought at that face value, I’m skeptical. Such tax laws probably do affect the decision of funds to invest in PM’s. Of course, another reason they may not do so is within their mainstream universe, many managers don’t see the US dollar loss of value as any true risk. It’s perverse to think that as currencies drop, gold appears to go up in value, and has to be taxed based upon that drop in value in dollar (or if you like, the rise in relative value of gold as an asset).
Check out the new “Gold Backed” Royal Canadian Mint Exchange Traded Receipts “ETR”…THIS IS NOT AN “ETF” …these are traded on the TSX…under the symbol “MNT”…it’s new…was launched in Nov. 2011…closed today @ 18.90…the Canadian Mint is allowing purchasers to trade these ETR’s…and you can take delivery of the gold from the mint…yes…I do believe that they actually do have the gold in the vaults in case you ever wanted to take delivery!!
These move up and down with the price of gold only…there are no other metals involved like in the CEF…as far as I know…they are not availble to be traded on U.S. exchanges (yet)…so you may have to have your broker do your trade for you if you are in the U.S. and don’t have access to buying Canadian shares on a trading platform.
I like these things…and when….(notice I didn’t say “if”…) we get into the “mania” stage for the metals down the road…I am sure the large funds will be investing in these ETR’s and moving the price up sharply…so there you go…this launched on Nov. 29 2011 :
“OTTAWA, Nov. 29, 2011 /CNW/ – The Royal Canadian Mint is pleased to announce the closing of the initial public offering of the Canadian Gold Reserves’ Exchange Traded Receipts (ETRs). The ETRs commenced trading today on the Toronto Stock Exchange (TSX) under the ticker symbol MNT in Canadian dollars and MNT.U in US dollars. Thirty million ETRs were issued at a price of CAD$20.00 per ETR (or the U.S. dollar equivalent $19.29) raising gross proceeds of CAD$600 million.”
I live about a 20 minute walk from the Mint…it’s still there folks, and our flag is still flying high on Parliament Hill…if you don’t trust the Canadian Mint not to screw you…then I guess there’s no hope for any of us!
Good Morning Bruce,
Many thanks.
This particular product, on the surface, appears to be pretty good. We will do some research and then a segment on it.
Regarding the Canadian Mint, I agree with your comment!
Best,
Big Al
slv,svm,= volitile. gpr,edr,fvi,img,new gold. tmm= takeover? now that i went to write them down i cant remember them all. cef is good, ipt. there are alot of really good companys. and i havnt even listed the 20 cent stuff that have interesting stuff. To be honust i feel the risk is the multi millions that are leaving the market every day ( how high can stocks go with alot less cash?) and mf global events or banks/ countries going broke, also sombody shorting your stock then they put out rumours to drive the price down. ( makes me leary of buying anything in $10- 25 range.) I have the list of what Ron Paul has, maybe I can get it on here. I figure a congrassmans list is good cause insider trading is legal for them. lol was a joke I love Ron Paul and he is obviously intelligent enough not to need inside info. After all its all just research and common sense.
Benb -Sounds good- go for it!
HI benb,
Yep, it is truly just research and common sense. Absolutely no question about that.
I don’t think any of the resource stocks that Ron owns would even come close to having any type of insider information associated with them.
If you get the chance, read “Vote Them All Out” speaking of insider information!
Best,
Big Al
January 9, 2012 – 5:33pm “Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM.TO – News)(NYSE: SVM.TO – News) today filed an amended lawsuit in the Supreme Court of the State of New York, County of New York, adding EOS Holdings LLC., Jon Carnes, Zane Heilig, Andrew Wong and International Financial Research & Analysis Group (“IFRA”), as defendants. The original claim, filed on September 22, 2011 alleges that defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several “John Doe” defendants with spreading “false, defamatory and fraudulent” information about Silvercorp on the Internet and in letters to the media and regulators to drive down the price of Silvercorp’s stock to profit from their short positions in the stock. The defendants have not yet answered the Silvercorp’s suit and the allegations remain to be proved.”
Just happened to see this at silverseek. ted butler any chance i get.
Morning benb,
Many thanks for the tip, I will use it in today’s Daily Editorial.
Best,
Big Al
Thanks for that Silvercorp info benb…check this interview out if you haven’t heard it:
CFTC Commissioner Bart Chilton: “Concentrated Positions Have the Ability to Manipulate Markets”
Chilton: It would appear the silver markets have been manipulated
This was a terrific interview…and at the risk of sounding “naive”…it gave me some hope that they actually are going to start doing something about all the market rigging going on in the commodities markets, before the “guns come out” and there is a revolution down in the States!!
Morning Bruce,
Many thanks for bringing this to our attention,
Big Al
When the concentrated short positions are dissolved in silver the silver market will do a bull run of the ages.It is all about ‘them’.Chilton just reiterates the obvious-hang in there,we will see the shorts eliminated.Yeah,Bart.Sure.The shorts exit out their position while creaming everyone else.Then they go long and nobody says anything until the top and they have made further gazillions.Then they tank the markets all over again.It’s rigged and we are watching it real time.
Isn’t democracy wonderful?
Yes MattB,
REAL democracy is wonderful, not the crap we are seeing in our markets!
Big Al
Here is Ted Butler’s thoughts on what Bart Chilton had to say.Folks,we have a crime syndicate:
http://www.silverseek.com/commentary/three-elements-manipulation
Here are the most popular gold and silver miners found in Dr. Paul’s financial disclosure statement:
1.Goldcorp Inc. (NYSE:GG)
2.Barrick Gold Corp. (NYSE:ABX)
3.Newmont Mining Corp. (NYSE:NEM)
4.Agnico-Eagle Mines Ltd. (NYSE:AEM)
5.AngloGold Ashanti ltd. (NYSE:AU)
6.IAMGOLD Corp. (NYSE:IAG)
7.Eldorado Gold Corp. (NYSE:EGO)
8.Mag Silver Corp. (AMEX:MVG)
9.Pan American Silver Corp. (NASDAQ:PAAS)
10.Silver Wheaton Corp. (NYSE:SLW)
11.Golden Star Resources, Ltd. (AMEX:GSS)
12.Kinross Gold Corp. (NYSE:KGC)
13.Brigus Gold Corp. (AMEX:BRD)
14.Coeur d’Alene Mines Corp. (NYSE:CDE)
15.Hecla Mining Co. (NYSE:HL)
BY THE LOOKS OF PAUL’S STOCK PICKS….HE IS SET OF FOR THE FINAL” BUBBLE STAGE.”,
BY THIS IS I MEAN(and this is not my theory)…PEOPLE WILL FLOCK TO ANYTHING THAT HAS “GOLD OR SILVER” IN THEIR NAMES…., that is one theory concerning bubbles, and we will have a bubble, The theory goes, everyone who has not been in the market,
that includes your neighbor, your co worker, your banker, your baker, your candlestick maker,,,,will rush in and want to be part of this market…
gold will be trading at 3000, silver at 120,,,,,and all these stocks with” gold and silver” in their names are going to be” 10 baggers.”..
Jerry,
I couldnt agree more.
I thought in 2005 that we would have been there by now. I now believe that summer of 2012 is going to be very interesting, to say the least.
Ditto…ditto that
HI Bobby,
Did not happen, to an extent in 2005, but for those who purchased gold/silver in 2005 they are setting pretty right now!
Big Al
thanks….BOBBY AND MARC
benb,,,,,by the way great post ….thanks for the info…
HI benb,
These are pretty safe. They don’t have, in my opinion, the upside of many of the quality juniors, but for a believer in gold/silver like the Congressman, they are great core holdings.
Best and thanks,
Big Al
This will either sound like a brilliant, overlooked insight, or an obvious one, but I just want to suggest to all that they should be diversified, not only by asset, but by institution! And not just one’s own investments and savings, but for one’s extended family. I took my money out of ML three years ago because it seemed to me foolish for my Dad and I to have our money all in one institution. If we are dedicated to taking care of each other, shouldn’t we ensure that the whole kit and kaboodle isn’t subject to the risk of it all going up in a puff of smoke if one institution fails? As I watched ML nearly fail, I thought it would be prudent for us to have our money spread out.
As for myself, I diversified across several accounts and countries. Some is in Zurich, backed by Gold thanks to GoldMoney.com and James Turk. Some is in Vanguard, some Etrade, including Canadian dollars and stocks. And some…right here at home where I can get to it in a crisis! I’m in California, where Earthquakes and bank runs seem as likely as not to be in my future! (maybe both!!??)
Best to all…
HI Martin c,
Your philosophy has been my philosophy for the past 30 years! Great minds travel along similar paths, huh!
Big Al
Tex: We cannot give tax advice. contact your CPA for that. Silvercorp has been good to us for a long time. The bad guys that hurt them are in big trouble. Both CEF and Goldmoney.com are on our preferred list. Contact Claudio at our NYC offices for a Trader Tracks subscription or trial. 718-457-1426. We like the first half of 2012 for trading and investing. 2nd half we’ll see later. Lots of volatility this year. Please be very careful. Trade management needed more than ever- Traderrog
Hi Roger Al and All.
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Why take risks with shares. Buy and sell the physical metal and store it in London, New York or Zurich. The more physical silver you take off the table the higher the price will go. All stored in Via Matt vaults all insured your property and cant be touched by anybody, no links to any bank.
We,ve been trading for years with them.
Click the link and open a free account today and get free gold.
http://uk-wholesale.net/
Al, still waiting for a reply to sponsorship, please contact me.
Martin (UK)
HI Martin (UK),
Sorry, send a telephone number to alkorelin@gmail.com and I will call you.
Appreciate the tip re: uk-wholesale.net
Big Al
Some good stuff here, though no one really seems to believes in junior explorers nor developers; CEF and Goldmoney are both a must and I would consider Ian McAvity and James Turk trusted and personal friends, for whom I have lots of respect.
never the less, my participation in the sector again started back in 1998, where I’ve bought some the seniors – NEM at 14, RGLD at 14, PDG at 12, GFI, PAAS, SSRI and HM at around 4 and got out too early; Still quite a performance!
Used most of my profit for enhancing my gold and silver bullion and spent the rest in in tier 2 and 3 pm miners. In late 2008 I’ve been lucky enough to pick up stock at cents to the dollar and in the meantime I’m watching like a hawk when to get back into sector wholesale:
meantime bought some GFI at $15, expecting a double dividend, some TNX – Jim Sinclairs Tanzanian co at just over 2,- , CLH, with 3.4 moz in Nevada at a new recent low, SVM, ASM as silver stocks not in the limelight just now.
A new co. Asante Gold expecting its IPO end of january – former CEO and founder of PMI Gold, Doug McQuarrie – has great credibility in Ghana and all over West Africa and therefor may succeed.
Just a few thoughts … cheers frr
frr,
Now, just might be the time to re-enter the majors, especially the ones that are paying dividends.
Many thanks frr,
Thanks for the comments. Helps us all!
Big Al
ffr….are you liking Tanzanian? thanks Jerryootb
I had SQI.vn in two different accounts. One account converted me over to IGO and NGD over a week ago, but the other account is still stuck in limbo, anyone know why this would be ? seems odd ot me…
Hi Al,
What are some good ways to invest in “blue gold,” also known as water (or water rights)? You don’t hear a lot of news about it, but seems like it’s a valuable resource that’s still flying ‘under the radar’ in the investment and mainstream media.
Hi Al,
It looks to me like many if not most junior miners stray into pfic territory occasionally , but no one seems to comment on this. No one seems concerned that any explorer or junior miner may be or may have been a pfic during ownership. Why is no one concerned?
Al & Rog,
Nice addition to an already top notch program!!
One of my favorite investments is with James Turks’ goldmoney.com. It is convenient to buy & sell pm or exchange currencies and leave in a holding account. Another plus is that it is out of the country