Financial Sense Newshour
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 Bill Powers, Editor of Powers Energy Investor. Bill believes the price of uranium has bottomed due to fundamental factors. This is the last year of the Megatons to Megawatts Program between the US and Russia, which provided a large supply of uranium into the market. Bill also notes rapid development of nuclear energy plants in both China and India, as well as plans in Japan to re-start the Fukushima nuclear facilities. Bill also sees tremendous value in small and mid-tier energy companies, and believes we will experience higher oil prices later this year.
This week on the Lifetime Income Series, Jim looks at what is a realistic annual rate of return on your retirement investments. With annuity rates low, as well as all fixed income at very low yields, Jim discusses what is realistic in terms of rates of return.
Jim welcomes back David Nicoski CMT, Director of Research at Vermilion Technical Research, LLC. Dave is currently positive, seeing breakouts in the S&P 400 Mid-Cap and Russell 2000 indices. He also believes sector rotation has turned now in favor of technology, transports, materials and manufacturing. Dave also sees a breakout in Biotech driving the healthcare sector at present. He notes that if trouble is brewing down the road, look for a major uptick in bond yields, a break-down in the US dollar, and a big rise in gold prices. Also this week, Ryan Puplava has the Market Wrap-up, Erik Townsend looks at Commodities, and Rob Bernard has the Fixed Income Report.
In this week’s edition of the Big Picture, Jim’s first topic is “Navigating the New Normal – the Petro Business Cycle”. Jim looks at the best way to survive and thrive in a world with more volatility and rapid business cycles.
Jim’s popular segment called “On The Record” makes its return this week. John Loeffler takes the role of interviewer this segment, and asks Jim about his thinking and analysis on...
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.
Jim welcomes First Majestic Silver Corp. President & CEO Keith Neumeyer this week. Keith sees the company moving from 9 to 16 million ounces of production by 2014, and on the way to becoming a major silver producer. Keith also emphasized that 80-85% of silver is consumed, and industrial demand is now the biggest driver of silver, not monetary demand. He noted that the technology sector alone is now a major driver of silver demand. Looking ahead, Keith believes that a squeeze is coming in the silver market, where demand will outstrip available supply.
Brian Pretti CFA of ContraryInvestor.com joins Jim again this week. Brian sees 2013 as an inflection point for Quantitative Easing (QE), noting that if you stretch a rubber band long enough, it eventually breaks. Brian believes the final end-game of the Debt Super Cycle is nearly at hand, when governments will be forced to deleverage. He thinks the bond market may begin to show some vulnerability as the “bond vigilantes” begin to test the resolve of the major central banks.
Jim welcomes back David Morgan of The Morgan Report. David mentions that both gold and silver prices got “ahead of themselves” in 2011, hence the long consolidation period since. He believes that this “scare you out, wear you out” phase is coming to an end, and higher prices are ahead. David acknowledges that QE takes time to work its way through markets, and for significantly higher prices, the velocity of money in the system must pick up. David sees a volatile year for the metals, and expects silver to re-test $50 at some point, and gold to hit $2,000, as a new group of buyers come into the metals market.