Legendary investor Don Coxe, Chairman of Coxe Advisors LLP, and former advisor to the $540 billion BMO Financial Group, issued a powerful new commentary entitled, “Money Makes the World Go Round”. 

In this updated piece, Don spoke to the staggering growth of the U.S. monetary base, indicating that when monetary velocity regains its speed, a “nightmare scenario” could unfold, with gold to money supply ratios exploding from levels, “so far [below] any all-time lows, so as to [defy] the description.”

Here is a highlighted segment taken from Don’s 30 min. commentary:

“What Ben Bernanke explained in a series of lectures last year, was the core of his strategy; A dramatic expansion of the U.S. monetary base, which shocked conservative republicans and…contributing to the big rally in gold. In his view, he had to do it to prevent a new depression. And he did that. But then he stayed with it, and his objective was to raise the value of the price of assets—he never mentioned gold of course. And he succeeded in the stock market, probably beyond his dreams.”

“At some stage there will be a transmission mechanism to move money from the fed’s monetary base, which is exploding at [a] 40% rate, and it will work it’s way into the money supply growth. Now that has to happen through what’s called a multiplier effect in the banking system, where banks create money by granting loans. That of course has not happened up until now, but there are signs that it’s emerging. And that is the big reason why the U.S. economy is doing better than most of the other big economies, because there is growth in lending in the U.S. banking system.”

“As that mechanism works, [there's] a point in which it builds it’s momentum, that the fears of the conservative economists, and the fears of gold investors come into play. Because once money supply growth starts to expand off that powerful monetary base, what you get is a self-reinforcing process. That’s the stage at which the nightmare scenario could unfold, if they don’t rapidly raise interest rates and start to shrink the monetary base.”

“[For gold investors], there’s more pain in store…until [the market] concludes, that buying may have downside risk, but the upside is going to be enormous, once the inevitable result occurs, of money supply growth growing far faster then GDP growth—setting off inflationary pressures in the economy. You cannot expand the monetary base by hundreds of percents for a long time, having a no fault situation. Eventually a huge challenge occurs.”

“So once you reach the stage of futility, of saying ‘nothing is going to happen, there will not be enough economic growth to stop expanding the monetary base,’…at some point then, what we will get, is monetary velocity will revive…This will occur in time therefore, where the ratio between the supply of gold, and the supply of paper money in the world, will be not just at an all time low, but so far [below] any all-time lows, so as to [defy] the description.”
——

Bottom Line: While there is still a current downdraft in the price of gold, long-term fundamentals are skewing even tighter to the upside. When the ultimate “gold to paper money ratio” balance occurs, it will no doubt catch most by surprise.
-
Once again, this was a powerful new commentary issued by one of world’s most successful commodity fund advisors. It is required listening for serious investors and market students.

To listen to Don’s conference call in its entirety (and to follow his regular work) visit: CoxeAdvisors.com

Enjoy the article? Please support the site by sharing this URL page link with friends, family, and your favorite chat forum.

Thanks,
Tekoa Da Silva
Bull Market Thinking

Photo source.

Danielle Park is the author of the best selling book Juggling Dynamite  and regular speaker at Cambridge House Conferences . Yesterday she spoke with Phil Mackesy on Howe Street Radio about the current cycles, the american stock market rally and “the brave new world”

Have a listen

She will also be at the up-coming World Resource Investment Conference

Visual Capitalist launched their “Market Intelligence” series a few months ago. Its monthly recap of world markets, commodities and investor sentiment is easy to digest, insightful and unique.

See what the market has to say

Republished from BullMarketThinking.com…

I had the chance to connect recently with one of Canada’s rising fund managers, Jon Case, portfolio manager with Sentry Investments. Sentry manages over $10 billion in assets, representing over 300,000 Canadian clients, and has further received numerous industry distinctions.

Serving as co-portfolio manager to over $1 billion in precious metals and natural resource funds, Jon was kind enough to share some commentary on the challenging environment of the mining sector, and recent sell-offs in the price of gold.

Here are the written notes from that conversation:

TD: Jon, looking at the action over the last few weeks – anecdotally, was there anything that really shocked you guys there at Sentry?

JC: I think everyone, ourselves included, have been surprised by the magnitude of the pullback in gold, given that none of underlying drivers for gold have changed. With the benefit of hindsight some are attributing the sell-off in gold to ETF selling, a potential gold sale from Cyprus, and downgraded price forecasts from Goldman Sachs and SocGen. In our opinion, those events do not represent a fundamental change in the drivers of gold, and, therefore, they should have had [only] temporary price impacts.

Broad measures of liquidity (Federal Reserve Balance) show that the global balance sheet continues to trend upwards, with no end in sight (though recently it did decrease in size due to a reduction in the ECB balance from the return of LTRO funds – however, we expect this reduction to be an aberration in the rise of global central bank balances, with US and Japan poised to expand their balance sheets at a rate that will more than offset ECB losses). Economic data points such as GDP, non-farm payrolls, and retail sales continue to show an economy that is barely growing (despite massive government stimulus in the form of deficit spending). Lastly, speculative positioning in the gold futures market is at a relatively low level, in the context of the range of positioning over the last four years.

TD: What do you make of the conflicting message we’re seeing in gold – in terms of the paper markets selling off so strongly, but yet retail buyers flooding the bullion shops worldwide…what are your thoughts there? And do you see any similar institutional rush?

JC: The futures market overwhelms the physical market in value, so imbalances in the supply/demand dynamic in the latter have a tough time pushing around the former over small time periods. But over a sustained period of tightness in physical supply vs. strong demand, price would respond, and the paper market will follow suit. We track the supply/demand dynamics in the paper market by looking at the shape of the forward curve and the Commitment of Traders report; and in the physical market by looking at the physical premiums paid for gold delivered to India and China—the main sources of demand in the physical market.

On the physical front, we are seeing evidence of very strong physical demand coming from Asia, with premiums of $2 – $3/oz. in Hong Kong, which is why we believe gold bounced off its lows. Whether that demand will continue to persist as gold pushes higher is not as clear, and there is some evidence of physicals premiums dropping off at current levels with gold up $125/oz. from its lows (at time of writing). This is not surprising, given that retail demand is highly price-sensitive, especially in India.

As for an institutional rush into gold, I don’t think that’s likely until we see some price stability, or until negative changes in other asset classes drive funds into gold. We believe the recent high volatility could discourage institutional activity over the near term, and, therefore, we expect gold to consolidate in a range for a few months, before we see it resume its climb higher.

TD: And the mining shares Jon – they’ve been mutilated. Is this the end of the mining industry, or possibly one of the great markets that will be written about for years to come?

JC: There are tremendous opportunities to be found in the gold equities; however, the opportunity is not uniform across the sector, which is to say not all the gold equities are cheap. The sad reality is that weak price performance of some gold producers is justified, given that many cannot make positive free cash flow at current gold prices.

In 2012 we estimate that the four largest, publically listed gold producers on North American exchanges, which represent 41% of the total capitalization of all publically listed gold producers in North America, generated –$3.0 billion in free cash flow. In gold terms, that’s equivalent to saying the YoY change in their balance sheets reflected a cost of gold production of $1,839/oz. in a year where gold is $1,669/oz. So with gold off 12% YTD, some investors may see the drop in the broader gold equities of 35% as an opportunity, but in certain cases value has dropped by a similar or greater amount: if they weren’t profitable at $1,700, their prospects look dim at $1,450/oz.

On a more positive note, there are real businesses in the gold space that generate strong free cash flow at the current gold price. The recent pull-back in the equities has been more or less uniform – all gold equities have been painted with the same brush – and the result is an over-reaction in the share price declines of the top-quality producers, where the pull-back in price represents a gross exaggeration of the erosion to their profitability.

We are seeing valuation levels never seen before, with some gold producers now carrying free cash flow yields (implied by their current capitalization) at spot gold price in the double digits (10% – 15%) – a unique buying opportunity.

TD: As a final question Jon, you guys have some of the world’s top fund managers working there at the firm—what would you say might be the the overall fund consensus about this environment that we’re in?

JC: Kevin MacLean, my colleague, and the lead portfolio manager on Sentry Precious Metals Growth fund has been managing investments in the gold space since the 1980s, so he has seen multiple cycle peaks and crashes in gold and gold equities. His message is that he has seen this before—it’s quite common for the sector to look broken at the bottom, and that’s always the best time to buy.
—

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Thanks,
Tekoa Da Silva
Bull Market Thinking

Photo source.

By Frank Holmes 

View Original Article Here

Sometimes following where money is being invested is a solid course of action to gain alpha; other times, a better opportunity lies in going the opposite direction, i.e., thinking contrarian.

Take commodities, energy and materials, which may be the most unappreciated areas of the market these days. According to Bank of America Merrill Lynch’s Global Fund Manager Survey of 250 participants who collectively manage $725 billion, energy, materials and commodities are extremely underowned.

As you can see below, the global asset class positioning during the first week of April compared to historical data shows that energy positions are close to 3 standard deviations below the long-term average. An allocation to materials is more than 2 standard deviations below its long-term average and commodity exposure is close to 2 standard deviations below its historical measure.

click to enlarge

Take note of the timing, though, as it appears that it may make sense to own the most underowned areas of the market. Compare today’s portfolio weightings to the last time fund managers had such a significant underweight in these asset classes. Each bar below indicates whether allocations in energy represented a net overweight or underweight position. Most of the time since 2003, managers maintained an overweight allocation, which means they likely anticipated outperformance in energy companies during this period of time. Continue reading →

The animated, anti-Federal Reserve film that is hitting the Magic Lantern Theater in the historic Spokane, Washington. The film is endorsed by silver proponents around the country including Former Congressman, and legendary figure in the End the Fed movement, Dr. Ron Paul, David Morgan, and Max Keiser! Notably, David Morgan will be sponsoring the event and holding a Q&A within the theater for all who attend. Morgan had this to say about the film:

“The Silver Circle is an animation in the not too distant future. It is a time when it has become illegal to transact in (gold) or silver and inflation is at a point that causes great suffering throughout the land.  This movie is thrilling, bringing critical issues about the nature of money and a system gone awry to the younger generation. The main heroine is a girl using Silver to shine the light of truth to others throughout the country and her efforts with others help to defeat the Federal Reserve banksters.”

The film has been shown in five cities, three of them being New York, Los Angeles, and Washington, DC. On May 3^rd they continue the second leg to their Northwest tour by visiting the home of “The Silver Summit” for a one-night event sponsored by David Morgan of www.Silver-Investor.com. Show starts at 7:00pm!

Experience the rebellion! Visit www.SilverCircleMovie.com/Events to reserve your seats.

Silver Circle: Why are gas prices are so high? Why is it getting harder to put food on the table? Some seek answers from government, but those who control the money control everything. Silver Circle is the story of our world in 2019, after the worst economic collapse in US history. Powerful players within the Federal Reserve use the crisis as an opportunity to grab power, forming the Department of Housing Stability (HousStab). Opposite them stands a group of Underground Rebels led by the tenacious Zoe Taylor (Philana Mia). As the Rebels put their lives and secret hideout on the line, Zoe confronts a vigilant federal agent, Jay Nelson (De’Lon Grant), asking him to question his own allegiance to the Fed and join their cause. This film represents a new venture in the liberty movement; educating and sharing ideas through pop culture and creative story-telling.

Purchase your tickets at http://www.brownpapertickets.com/event/371360

Contact:
Megan Duffield, Marketing Manager
Two Lanterns Media
Phone: 617-864-8300
Email: megan@silvercirclemovie.com
Website: www.SilverCircleMovie.com

Published in cooperation with BullMarketThinking.com…

I had the chance this week to connect with legendary junior resource financier and investor, Rick Rule, Chairman of Sprott US Holdings, part of the overall Sprott Asset Management group of companies.

It was a fascinating interview, as Rick discussed exactly what he’s doing right now in the resource sector, and why so much money is made as a consequence of “selective and aggressive buying during these market bottoms.”  

Speaking toward fund “disintermediation” of mining and natural resource shares, Rick stated that, “What’s happening now…[is] the small hedge funds and mutual funds…are experiencing redemptions. When you are experiencing redemptions as a manager, you don’t sell what you want to sell…you sell anything that has a bid, [as] you have to raise cash to fund your investor redemptions…One of the weaknesses of the mutual fund model in a cyclical industry like precious metals or natural resources, is that although the industry itself requires a contrarian technique, you’re at the mercy of the mob, and you’re at the mercy of the market. We’re seeing this in the capitulation selling that we’ve been [watching] this week.”

When asked if we’re finally seeing the spasmodic, event-type selling which marks major, historical bottoms, Rick said, “Yes sir. We’re coming right into it now. We’ve been experiencing it, [and] I expect we’ll continue to experience it for a while. I expect the spasmodic sell-off to give way to the summer doldrums, where the market drifts a little bit lower through the summer, albeit on no volume. Then I expect the market to begin to pick up in September, in a stealth bull market that nobody notices, where the sellers are simply exhausted, [and where] weak buying volume overcomes weaker selling volume.”

With regard to the absolute desperation being seen by weaker hands in the market, Rick explained that, “The type of speculator who got drawn into the precious metals and natural resource markets in 2009-2010, which were blow-off tops, are of course capitulating now. This is all good by the way…given that I want to own these assets, and given that my assets aren’t for sale at any prices like these, I’d love to see it lower…if you’re trying to increase your assets, you want to buy them on sale.”

According to Rick, this is one of the best markets in twenty-years for a contrarian speculator, with the last great one being, “The 1990 bear market [which] was an obliteration. You’d open up Stockwatch, and every week twenty companies got the dot. They got suspended [from trading] because they didn’t make their filing fees, or they couldn’t pay for their audits. So twenty listings a week went to listings heaven, truly brutal…and it was great because it chopped out all the flotsam and jetsam (junk), and when the market began to recover in 1992-1993—the recovery was absolutely vicious to the upside. You make so much money coming out of these cataclysmic sales, if you are selective and aggressive at market bottoms.”

Sharing a story of astounding wealth creation during that 1990 bear market, Rick concluded by saying…Listen to the full interview by clicking here.

Read more: http://www.montrealgazette.com/news/Brian+McKenna+explores+Secret+World+Gold/8255149/story.html#ixzz2QrCwGGVe

Republished from BullMarketThinking.com…

**This interview was recorded Wednesday evening, 4/3/2013**

I had the chance yesterday to speak with technical gold trader Gary Savage, publisher of the “Smart Money Tracker”, daily gold market commentary and trading service, which has outperformed most of the world’s hedge funds in 2011 and 2012.

It was a powerful conversation as Gary commented on the panic selling we’ve seen over the last few days, sharing his view that “once this bottom is formed, we may never see gold at these levels ever again.”

Despite continued and relentless selling, Gary commented that, “Gold isn’t in a bear market, it’s [just] been in a consolidation since the top of September 2011. If you pull up a 13-year chart, it shows that gold is not in a bear market, not even close. The miners however, are in bear market, and they have been for 19 months now, and they’ve lost 50%. That’s about an average cyclical bear market…[So] I think the miners are [primed] to bottom along with gold at this yearly cycle low, which I don’t think occurred today, but I think we’re within a day or two of that final bottom.“ 

When asked about valuations on mining stocks at these levels, Gary said that, “The valuations in the miners are absurd. The gold XAU ratio is higher than it’s ever been before in history. This is coming at a time where the miners have gotten the hint…management is cleaning up their act…[and] the sector is doing what it needs to do to turn itself around. [But] since the trend is down, people just invent reasons for why the miners should continue to go down. Eventually rationality is going to return, people will recognize that mining stocks are not going bankrupt, and they’re just too insanely cheap.”

In terms of the big picture following this grueling correction, Gary said, “We definitely started a [panic selling climax] today in my opinion. The volume on GDX and NUGT was just through the roof, [but] we’re close [to a bottom]…If you have the emotional ability to buy at those bear market bottoms, that’s where the really big money is made…[and] once this [bottom] is formed…we will probably never ever see gold back below this level again.” 

As a final call, Gary concluded by saying…Listen to the full interview by clicking here.

Republished from BullMarketThinking.com…

I had the opportunity this week to connect with Don Mosher of B&D Capital Partners in Vancouver. For decades Don has helped finance the junior resource exploration market, and has been a key player in raising over $120 million in venture funds over the years.

It was an interesting conversation as Don has recently co-founded an organization representing Canada’s venture industry, called the Venture Funding Crisis Committee (VFCC), with the aim of “improving the ability of venture companies to finance their activities.”

According to Don, the ability to efficiently raise capital is becoming harder and harder in Canada due to excessive regulations. The ultimate destination he explained, may be an environment of horrifically higher commodity prices and potential shortages.

Starting with the evolution of Canadian resource exploration, Don explained that, ”Over the last 150 years…we’ve become globally acclaimed for resource exploration. Originally [exploration stocks] started out [trading] as a curb exchange, where businessmen were trading certificates and trying to convince each other to buy into start up exploration companies. [But] over the last 150 years it’s transformed into the most heavily regulated market in the world, with some of the most severe penalties of any market in the world.”

With respect to the importance of exploration finance, Don said, “Last year, over 70% of all money raised for exploration expenditures on a global basis was raised in Toronto…[and] on the venture exchange there was $6B raised. Of the $6B raised, $4B was raised with non-brokered financing’s…There is close to 1,300 companies on the exchange, [and about] 150k jobs in the exploration business. If those companies can’t get funding, the potential is to see 150k people lose their jobs, but in addition to that, the supporting cast of about another seven jobs supported by [each] exploration [job], will also be impacted. So we’re talking about hundreds of thousands of jobs at potential risk here.”

An environment of tightening regulation, Don added, simply leads to industries moving overseas.“To mention a famous mine explorer, Robert Friedland, he thinks that the entire venture market is going to move to Hong Kong. What he’s pointing at is what happened to U.S. manufacturing. U.S. manufacturing went to a jurisdiction with less regulation, less costs, making it easier for them to do business…[so] the impact on Canada is going to be horrific. The seven jobs created by that one [exploration] job, are going to be transported overseas to Asia—as opposed to [staying in] Canada”.

When asked about the long-term impacts of the tight regulations on commodity prices, Don concluded by saying, “I think that the impact on commodity prices will be horrific…It might be a ten year transition in terms of the venture exchange slowly choking to death and the Hong Kong market getting up to speed. In the meantime, deposits are…dropping [in] grades, getting deeper…[and located in] more hostile jurisdictions…The impact on a global basis therefore if this market [is] shutdown, has global repercussions—potential commodity shortages.” 

Listen to the full interview by clicking here. 

One of the more fascinating reminders of what may be to come for the remainder of this gold bull market, is the charted history of the dow/gold ratio. Below are two charts illustrating the upward potential in gold which remains for the duration of this market.

The first chart is a normal 200-year look at the dow/gold ratio. What’s particularly shocking here, is the staggering levels of volatility injected into the economy and financial system following the US Federal Reserve’s formation in 1913. Now commonly called a “business cycle”, this volatility has wreaked havoc on many, while creating excellent one-way bets for long term speculators. These charts essentially represent, a speculator’s dream.

(click to enlarge)

Furthermore, these wide swings in the dow/gold ratio allow dynastic pools of capital (many multiples of billions) the ability to speculate on economic expansion and monetary confidence while remaining in the largest and most liquid markets. When (and if) Central Banks participate in the dow/gold ratio trade, their monetary toolbox can assist with the timing and severity of the move.

Essentially, the best way to play the dow/gold ratio trade, is to do so with an understanding of the timing of Central Bank participation (through gold purchases & sales), and monetary expansion & contraction.

So where are we at the moment? Just look around. Central Bankers globally are smirking in the face of bearish gold sentiment, with “central bank gold buying in the fourth quarter of 2012 mark[ing] the eighth consecutive quarter of net purchases by the official sector and the highest level since 1964,” as reported by the World Gold Council.

Here is the second and more alarming dow/gold ratio chart, illustrated with a “confidence trend band”:

(click to enlarge)

What these two charts leave to the imagination however, is the extent and severity of the bottoming of this cycle. In looking at the visual trend being set over the last 100 years following the Fed’s formation, one might consider a bottom occurring under a 1-to-1 ratio favoring gold.

A skeptic could also conclude in looking at the first chart, that the majority of the move has already occurred, with only meager gains left remaining.

In response to that, the Pareto Principle suggests that 80% of the gains are found in the final 20% of the bull market. As it currently stands, the dow/gold ratio is sitting at roughly 9-to-1. A move to a 5-to-1 ratio, would require a $2907 oz. gold price, a 3-to-1 ratio $4845 oz., and a 2-to-1 ratio would require a stunning $7268 oz. gold price.

A 2-to-1 ratio move from here equates to a 400% move higher in gold, and of course, a 1-to-1 ratio ($14,500 oz.) would equate to an over 900% move left remaining in the gold bull market. 

So is a move to a 2-to-1 ratio or lower in the cards? That’s ultimately for you to decide. But when we look at the climate, it appears that the worst of the financial problems are only just now bubbling to the surface. Additionally, why would Central Banks be acquiring record-setting amounts of gold unless they also expect a powerful thrust downward in the ratio?

Bottom Line: If you expect major fireworks in the future; a jubilee of financial, economic, & social unraveling—then expect the dow/gold ratio to drop lower. Much lower.

Thanks,
Tekoa Da Silva
Bull Market Thinking

In what will be a rare speaking engagement open to the public, institutional energy fund advisor and president of Schachter Asset Management, Josef Schachter, will be presenting at the 2013 Calgary Energy & Resource Investment Conference. He will be sharing market insights and thoughts, which until now, have only been available to the largest institutional energy funds.

Ahead of his speech, we were able to catch him on the phone for a sneak preview of what’s to come.

Josef explained that today’s markets are just a continuation of the ongoing roller coaster ride, and in order to survive, “you need to have a trading mentality.”

He explained that from a seasonal perspective, “We’re in the normal period as we get out of winter where the oil price usually backs off. In past years we’ve gotten as high as $105-$110 a barrel at the highs in February and March. This time we didn’t get as high, only up to about $98-$99. Following this period after winter, if OPEC doesn’t cut back production and inventories remain high, we could get a correction into the mid $70s. If that happens the S&P TSX Energy Index could back off by about 20%.”

“So we’re looking for the index between now and the summer to back off to about the 200-220 level, and from there we might get another trading opportunity,” he added.

When asked how investors should best approach this market, Josef said, “For the next couple of years our approach is to look for trading opportunities, rather than buy and hold. I don’t think we’ll get the start of a lengthy commodity cycle like we had before from 1999-2008, for at least another 2-3 years, or until a number of things happen.”

The fundamental conditions that need to change in order for a new energy cycle to assert itself Josef explained, is that “One, the debt crisis and issues in Europe and Japan need to resolve themselves, and two, we have to have new infrastructure in place to be able to handle the exporting of L&G and oil, so that the world price is received by domestic producers. Additionally, until we have a decent business cycle, where we have the resolution of the debt crisis and you get into a lengthy period of decent markets, you’ve got to have a trading mentality. You got to be willing to say ‘sell’. If you don’t, you’re going to get hurt.”

This is just a short preview of the comments Josef will be sharing at the upcoming 2013 Calgary Energy & Resource Investment Conference. Once again, his commentary is normally only available to the world’s largest energy funds, but attendees of this year’s conference will have the rare opportunity to listen to and meet him directly.

To register your FREE attendance for the 2013 Calgary Energy & Resource Investment Conference, visit our online registration page here: Calgary Energy & Resource Investment Conference 2013

We hope to see you there!

Cambridge House International

Photo source.

I had the chance yesterday to connect with Bob Moriarty, founder and publisher of 321Gold.com. Becoming a war hero at the age of 20, Bob completed over 824 combat missions during the Vietnam War, as well as having earned many international aviation records.

It was a fascinating interview, as Bob began buying gold after seeing (first hand) the enormous monetary costs of war, and the explosive inflation that always follows.

He explained that, “When you look around and see how expensive [war] is, you realize that ‘Hey, somebody’s got to pay for this.’ I was in Vietnam, looking around in 1968-69, and said, ‘This is crazy. We’re not paying for this war [now], [but] we’re going to have to pay the price someday’…When I was a kid we used to pay $.19 cents a gallon for gasoline. All of the inflation of the 1970s came directly from the war in Vietnam. Likewise today, the one thing that’s baked into the cake, is we’re not paying for Afghanistan and we’re not paying for Iraq—[but] we’re going to someday.”

Bob also commented on his participation in the 1970s gold bull market, the 2001 bottom in metals and miners, and explained why today is one of the cheapest entry points he’s ever seen. 

“People are pessimistic today about [gold and] gold shares,” he said, “more than they were in 2001, or in 2008…even the biggest gold companies out there…these guys are getting totally hammered…We had total capitulation a week ago Wednesday, and people were panicking, and people wanted out of gold at any price. It was irrational and it was a foolish thing to do. This is the best time to be buying, not the worst time.”

All the “bad news” emanating from the space is an indication of just how oversold the market is, he further explained. ”A comment I’ve heard many years ago, is that at every top there are 100 reasons to buy, and at every bottom there are 100 reasons to sell. It sounds too simple to understand…but it’s just that simple. If you can count 100 reasons why you should buy something, then you should do the opposite. If you can count 100 reasons to sell something, then you should do the opposite…Investing is about psychology. When 97% of people want to be sellers, it means you don’t have any sellers left, you only have buyers—and we hit that point a week ago.”

In a concluding remark, Bob said,“It’ll be weeks or months before people realize we’re at a major bottom…a tremendous opportunity. We’re going to go through the same thing [a bubble] in gold and silver that the stock market went through, that the Nasdaq did in 2000, and what housing did in 2005 and in 2006…but we’re a long way from that point.”

To listen to this full interview on BullMarketThinking.com, click here. 

An epic debate about the creation and preservation of wealth featuring Rick Rule, Peter Schiff, John Mauldin and Grant Williams. The highlight is a classic faceoff between Peter Schiff and John Mauldin that takes place around 7:30 in and goes on for several minutes and really heats up at 9:30.

The debate took place February 24, 2013 at Cambridge House’s California Resource Investment Conference in Palm Springs.