Financial Sense Newshour Archive
Changes In The Gold Mining Industry - Better News For Investors
Jim welcomes renowned geologist Keith Barron, PhD to the program. Keith was co-founder of Ecuadorian gold explorer Aurelian Resources Inc. and made the colossal Fruta del Norte gold discovery in 2006. Keith is currently founder and Exploration Geologist at U308 Corp. Keith and Jim discuss the new “gold stock paradigm” that is emerging, where companies are becoming more investor-friendly, relying less on the old “acquisition of ounces” model, and more on increasing shareholder value through cost controls, and emphasis on quality over quantity.
Technician Tom McClellan of The McClellan Market Report shares two charts with the Financial Sense Newshour on what he sees with current gold cycles and the daily gold lease rates.
The Fundamentals For Precious Metals Haven’t Changed
Jim welcomes back Ross Hansen, founder of Northwest Territorial Mint, now the largest private mint in the US. Ross discusses the recent high demand for physical precious metals, and notes that the fundamentals of the market have not changed. At the moment, there is a shortage of product, specifically gold and silver coins. Ross advises to not pay the current higher premiums on coins, but just buy the rounds or bullion. He sees the “fast money” crowd trading in and out of the paper gold market, but the demand for physical precious metals continues to rise. Jim and Ross also discuss the current situation in Cyprus.
Recent Whiff of Deflation, But Plenty of Money Floating Around to Create Inflation
Jim welcomes back Eoin Treacy, Global Strategist at Fullermoney, a division of Stockcube Research Ltd. in London. Eoin is favorable toward US markets, noting contracting P/E’s and rising dividend yields on US stocks. He believes the US has an advantage over other countries, and sees US multinational stocks leveraged to the global economy as the best place to invest. Bond investors are reluctant to change their strategy, and Eoin doesn’t see them moving into stocks until they start losing money in bonds.
Doha - The first Peak Oil conference initiated by Gulf State oil producers
Jim is pleased to welcome back Dr. Robert Hirsch, Senior Energy Advisor at Management Information Services Inc. and an authority on Peak Oil. Dr. Hirsch has just returned from an historic peak oil conference in Doha, Qatar, the first ever initiated by Gulf State oil producers. Dr. Hirsch believes there will be a “sea change” coming to the Middle East, once peak oil is reached. The timing of its arrival is difficult to predict, but it will likely be sooner than the global economy is prepared for. He makes the point that most people don’t understand that peak oil is a “liquid fuel problem”, and thus wind and solar technology will never solve the problem. Dr. Hirsch also sees the current projections of future US energy independence as “pure fiction”.
Japan ready to unleash a tsunami of money globally
Jim is pleased to welcome back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian says to brace yourself for the flight of global capital coming into the US later this year. For now, all roads lead to the dollar. Brian believes the first wave will come from capital fleeing both Europe and Asia. Brian and Jim also discuss the new Japanese monetary policy and how this will unleash a flood of cheap money on the globe. This will encourage sophisticated investors to borrow in Japan, invest in the US, and pay back the loan in cheaper Yen, increasing the return substantially.
Special Guest: Dr. Bonnie Olsen on Elder Financial Fraud and Abuse
This week Jim and Cathlyn use the case study of Joe and Irene Turner to illustrate several issues facing today’s retirees. These issues include Long Term Care and medical expenses, fear of the financial markets, inflation, the difficulty of maintaining quality of life in a 0% interest rate environment and reconciling budgets versus sources of income. The guest this week is Dr. Bonnie Olsen of the National Center on Elder Abuse at UC Irvine. Dr. Olsen discusses financial fraud and abuse on the elderly and how to avoid it.
Also, Ryan Puplava with the Market Wrap-up, Erik Townsend on Commodities, and Rob Bernard on Fixed Income
Jim is pleased to welcome back legendary technician Ralph Acampora, Director of Tactical Investments at Altaira Wealth Management. Ralph sees the market in a corrective mode, which could last a month or so. He notes divergences in the Transports and the DAX. He sees the US and Japan as the best places to invest, and believes the secular bull is still in the early stages. However, Ralph sees the bond bull-market in the 9th inning of its long 30 year run. Also in this segment, Ryan Puplava wraps up this week in the markets, Erik Townsend discusses gold and commodities, and Rob Bernard looks at bonds and interest rates in the Fixed Income Report.
Also, “The Dividend Story Keeps Getting Better, Better and Better”
In this segment of the Big Picture, Jim looks at two stock related topics. In “Drop, Pop and a Melt-up in the Stock Market”, Jim discusses the idea that the next stock market melt-up will be caused by the flight of global capital coming into the US from both Asia and Europe. In the next topic, “The Dividend Story keeps getting Better, Better and Better”, Jim looks at the reasons why to own dividend-paying equities, and the trend of growing dividend pay-outs in the first quarter of 2013. Jim will also answer your Q-Calls in this segment of the program.
Jim Puplava’s Big Picture: Fast and Furious- Paper Gold vs. Physical Gold - The Real Story Behind Gold’s Decline
Kathryn Derbes of KDerbes Precious Metals LLC - “We’re Completely Out of Silver Eagles - They’re Gone”
In this segment of the Big Picture Jim looks at the large decline in gold and silver, and gets into the reasons behind the carnage, as well as the huge difference between “physical gold & silver” and “paper gold & silver”. Jim notes that investors should know why they own gold, understand it, and then leave it alone. Also, Kathy Derbes CFA, and CEO of KDerbes Precious Metals LLC, joins Jim in this segment. She notes the current record buying of physical precious metals, last seen during the Lehman crisis, and says her firm is “completely out” of Silver Eagles. Kathy is not even taking orders for more Eagles, as it may take six to eight weeks or more to acquire them.