The Gold Report: Mike, we often hear that the current generation doesn't realize how good they have it compared to when you had to walk uphill both ways through snow to make a trade. Is it easier to invest today with all the resources online and pundits around every corner or is it harder to cut through the noise and find the best opportunities?
Michael Berry: While the Internet makes it easier to do research and make a trade, that doesn't mean it is easier to make a good trade, or better still, a smart long-term investment. I think it's challenging today. It's easy to trade, but much more difficult to create real wealth. A P/E multiple used to have real meaning. Today, the pace of the market is so fast, there are so many flash traders, so many games being played and so many nickels being minted, that it is difficult to figure out what is real. There are debt and equity bubbles out there that have been being created for the past two decades. They can be difficult to take advantage of because investors have to go against the prevailing thinking.
"Quaterra Resources Inc.'s Yerington property could become a major world-class copper resource."
Hedge funds can't make it today; only the private equity players seem to be successful and they have tremendous advantages. Almost all central bankers are in the investment game now. The Federal Reserve owns 25% of the Treasury bond market. What do they plan to do with their investment? There is US$9 trillion sloshing around the world today and a global exchange rate devaluation. These issues make central bankers powerful new players and make the market more challenging for individual investors.
TGR: Chris, did the boomers and the flash traders wreck it for the rest of us? Continue reading "What The Boomers Got Wrong And Right About Natural Resource Investing"
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By: David Sterman of Street Authority
Even as investors were re-embracing stocks in 2010 and 2011, they scored really big gains with one of the hottest commodities in the world: Silver.
The precious metal soared in price from under $20 in August 2010 to nearly $50 an ounce by the next spring. In the hindsight, the silver spike was a classic bubble, fueled by inflation concerns that simply never materialized.
Though few people could have guessed that silver would be capable of a 150% nine-month gain, few also would have predicted that the eventual slump in silver would be so extended. Silver prices fell back below $30 an ounce by the start of 2013, and they've been in freefall ever since. A snapback to 2011 peaks is out of the cards.
You can get a sense of just how painful the silver slump has been by glancing at the performance of key exchange-traded funds (ETFs). The leveraged (2-times and 3-times) funds have been among the market's worst performers.
And when it comes to the silver producers themselves, it appears as if sentiment has utterly collapsed. In recent weeks, industry share prices have slumped another 20%-to-30%. In contrast, the pullback in gold prices and shares of gold miners has not been nearly as severe. Continue reading "Why There's Upside To Silver's Four-Year Lows"
Article source: http://www.streetauthority.com/node/30483117
The Gold Report: The World Gold Council, which gets its numbers from Thomson Reuters GFMS, reports that total gold demand in Q2/14 fell by 15% versus the same period in 2013. Furthermore, physical bar and official coin demand were basically cut in half while jewelry demand fell by 217 tons or 30%. What do you make of all of that?
Christos Doulis: Clearly, there has been less enthusiasm for owning gold in recent years. A lot of that has to do with the concept of gold as a safe haven. Six years ago, when the financial crisis was in full swing, gold was $800900/ounce ($800900/oz), but on its way to $1,900/oz in September 2011. The fears associated with that period have largely receded and we're seeing a decrease in both gold investment and jewelry demand, which is often a form of savings in non-Western nations. We're seeing a reaction in demand because the fear component that drives interest in the gold space is down significantly.
TGR: Meanwhile, central bank gold purchases were up 28% year-over-year. Is that the silver lining?
"Cayden Resource Inc. has a quality project that will likely be among the lower-cost producers."
CD: I'm a goldbug in that I think everything that has happened since 2008 is ultimately positive for precious metals prices. We've had a massive money printing exercise. The markets are running because there's so much money and the money has to go somewhere. The fact that central banks are buying gold tells me that goldthe currency between states and central banksis still regarded as an important part of the reserve mix. While the demand for gold among general investors may have decreased during the last few years, the policy makers in the central banks are well aware of the seeds that have been sown in a fiat-currency race to the bottom.
TGR: With the U.S. economy seemingly strengthening, gold seems destined to trend lower in the near term. What's your view? Continue reading "Can Gold Act as a Safe Haven Again?"
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The Gold Report: Gold continues to languish under $1,300 per ounce ($1,300/oz), even as full economic recoveries in the U.S. and the European Union (EU) have yet to occur, despite trillions in new debt and stimulus. Meanwhile, we have two wars in the Middle East that could escalate, as well as reports that Russian troops are in Ukraine. With all that in mind, do you think that gold's fundamentals are less important than they once were, or is the price of gold being held back by other factors?
Charles Oliver: Gold is just as valuable today as it was 100 years ago. There was an orchestrated takedown of gold in April 2013. It has since traded between $1,200/oz and $1,400/oz, and this flies in the face of the conditions you mentioned.Silver Wh
"Asanko Gold Inc. has great assets."
We're going to have to be patient. We have gone through a bottoming process. We've had similar conditions before. In 1974, after the oil embargo, U.S. inflation was increasing dramatically, yet gold fell from about $200/oz to about $100/oz in 1976. Then over the next four years gold subsequently rallied to over $800/oz. In this decade, gold has fallen from $1,921/oz to $1,180/oz, but the fundamentals remain intact, and gold will regain its reputation as a unique store of value.
TGR: You used the phrase "orchestrated takedown." Do you agree with the thesis advanced by the Gold Anti-Trust Action Committee (GATA) that gold and silver prices are manipulated downward by central banks? Continue reading "Gold at $1,500 by Christmas?"
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The Gold Report: When we interviewed you last, you mentioned the possibility of "resource wars" in 2014 as referenced in Michael Klare's book of the same title. What will that look like to the average investor?
David Morgan: The resource wars have already started. Look at Mexico. It has a resource that it covets very much, and that's energy. That is why the government levied a new tax designed primarily at energy but subsequently adds a 7.5% royalty on mining profits. Is it a war? Not per se, but it is detrimental to companies that operate in Mexico today and in the future. I think we will see even more of this kind of thing in 2014.
TGR: Last year was a volatile year for precious metals prices with silver going below $20/ounce ($20/oz) and gold bobbing around $1,200/oz at the end of the year. Are we still three or four years from $100/oz silver as you said in your last interview? What's going to push it to that level? Continue reading "David Morgan: 'The Silver Bottom Is In: Time to Hold, Add and Ride It Out'"
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