Financial Sense Newshour: Experts

Jim welcomes back Eoin Treacy, Global Strategist at Fullermoney in London. Eoin sees the new Japanese government aggressively attempting to create more inflation, and improve exports by cheapening the Yen through massive money printing. He also believes the US industrial sector looks extremely attractive, and believes investors should be buying equities at these levels. Eoin also notes that the “dollar collapse” camp has been wrong in the past, and he believes they will be wrong again this year, as he expects the dollar to strengthen.

Jim is pleased to welcome back former US Senator Alan Simpson. Senator Simpson blasts politicians of all stripes for not addressing the main issue: unsustainable health care costs. He feels the debt ceiling debate will be pure political theater, and the US is not in danger of defaulting on its debt. Despite the coming media and political theatrics, Mr. Simpson believes the issue will pass without a crisis. He advises turning off your television. He also notes the reason that politicians continue to “kick the can down the road” and never seriously confront the serious debt issues, is simply because they don’t want to anger the special interest groups and risk losing their privileged positions at the center of power.

Jim welcomes Jonathan Potts, Managing Director of FideliTrade Inc at Delaware Depository Services Company LLC. Jonathan covers a wide range of issues on bullion storage, including the difference between allocated and non-allocated storage. He notes that bullion storage offers liquidity as well, as investors can buy or sell their bullion at any time. Jonathan also notes that one of the biggest changes in the bullion storage industry is that investors can now buy physical precious metals in their IRA’s. He also sees most gold bullion investors as long-term holders of the metal, while silver bullion investors tend to trade and speculate more.

Jim welcomes back Simon Mikhailvoich, Co-Founder of Eidesis Capital LLC in New York City. Simon discusses the current debt issues in the US and notes that our deficit spending is being financed by the Federal Reserve printing money, enabling politicians to spend even more money. Simon also looks at the bond market, which he believes many investors perceive as a safe haven. He notes that most of today’s population has never experienced a true bond debacle, such as happened in Greece, and most expect the current situation to continue indefinitely. That is not likely, as interest rates have been falling for 30 years, and are now near historic lows. As to gold, Simon advises investors to ignore the short-term volatility in gold, and focus on the long-term fundamentals.