We keep hearing experts in “gold stocks” say that they are mystified. They don’t understand why people haven’t bought into the stocks and wonder why the HUI and XAU are not higher. Let me explain why I think that investors are staying away from the stocks: it is because they are not stupid. When an investor buys shares, he hands over his money to a company manager who can do anything that he want to with it. The managers can pay themselves big fat bonuses, even if they screw up and don’t manage to mine any precious metal. They can ‘dilute’ shares, meaning that they can go out sell a gazillion shares which means as an investor, you will get nothing back for your investment. The problem is that there can be no trust in the market. Trustworthiness has been shattered. We see the Fraudulent Five banksters robbing their clients, robbing investors through deception, fraudulent documentation, front running on the NYSE and manipulation of stock prices through High Frequency Trading. There is no one there to stop them. The government ‘cops’ or regulators as they are called, are in bed with the crooks, letting them destroy and rob whatever wealth that an investor has. In some cases, it is their life savings. Until trust can be restored, you will not find me in the market. It will take some doing for the bonds of trust, tattered and broken as they are, to be restored. In order to gain the trust of investors, the market managers will have to become trustworthy. The corruption on Wall Street is so pervasive that it is likely to be a decade or two before the bad apples are cleaned out of the system. Until then, you can say adios to smart investor money.

I am in Canada and I concurr with Ron. I got into physical PM because I was getting my wealth destroyed by the market and its criminal sleight of hand artists, short sellers ect. As for government they are just an accessory to the crime.

I agree that the regulators are incompetent, but that IS government. Does government do anything well?
However, I disagree about mining companies. While there are many fraudsters in the business, that are only in business to obtain a meal ticket from investors, there are also many honest miners. I listen to this show so I can gain knowledge and be able to tell the difference between a hole in the ground with a liar standing by it and a sincere attempt to extract minerals for society. I am grateful to Big Al for his effort to present good companies. (I know it takes a lot of work, for which we pay him nothing other than a little time of clicking on some ads.)

Ron, your perspective mirrors my own regarding Wallstreet and the gang of crooks who seek to separate you from your money. You cannot have an honest investment market when the winners predetermined the outcome of these investments. And the outcome usually lines their pockets and not the smaller investers.

I too agree that the Junior mining sector has to be the hardest place for investors to make any money. It is fraught with ‘pump and dump’ schemes and the many newsletter writers that seem to get preferential stock deals while investors end up holding the bag. There are 4,000+ junior mining stocks and only perhaps 5% of them actually are worth investing in. For the average investor, trying to wade through the other 95% of the dross without the benefit of Insider information is a mamoth task. A very few people get lucky in this industry and happen to own one of the stocks that goes up 500%. For the majority of other investors, we are left holding near worthless stock if we choose to hold for more than a very short term.
Despite record commodity prices, most Juniors are still down 50% or more in the past few months. Hardly a glowing recommendation to put one’s hard earned money in this sector.
I may sound negative and perhaps thats because I’ve spent the best part of 14 years attempting to invest in the Junior mining sector and to date my losses still vastly out-weigh any gains I’ve made and I consider myself one who tries to do thes best due dilligence one can, given the available information.
While its a tantalising prospect to put money into the Juniors miners in the hope of getting one big winner, its probably more likely to be profitable to go to a casino and put everything on a single number on a roulette wheel…
good luck all.

To learn more about the PM mining sector please listen to one of the experts, former Newmont Mining president and current Franco Nevada president, Pierre Lassonde, http://www.kingworldnews.com. This man has forgotten more about PM mining than any of us will ever know.

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Al, in the second half of your weekend show you had Jordan Ray-Byrne, who talked about the ‘secular’ bull markets. I would like to check something with you, so I know if I understood him correctly?

He first mentions a mild general correction coming for the next little while. Then he refers to these secular bull markets’ acceleration in the 11th-12th year. And finally he notes that the final parabolic move is separated by a gap. Is this coming correction that gap?

If I just look at investing in physical silver – did he mean a pending correction coming, that would be the actual gap between now and a final parabolic move? (I know you are buying every month, I am just hoping to find out if we’ll ever see it lower than today’s price before something big happens and from what he said that seems likely.) After sept’10 and feb’11.. a more pronounced correction does not seem impossible. Or have I misunderstood him and silver is just again taking off right now?

My second question to you: Given the pump and dump state of the juniors these days – what is a realistic Canasil stock value to watch out for in the fall? 0.50-0.60? or should I look for higher. Unfortunatelly I hurried with Canasil like others and did not take advantage of this summer weakness, which would have been much more profitable. (As of today CLZ 0.34)

Hi Al,
Interesting energy segment about fracking. Leave it to the job killing EPA to try to stop fracking. Here is an interesting article about the wasteful government spending and one of the reasons why I say NO to tax increases. http://www.thefreemanonline.org/featured/most-outrageous-government-waste/

Concerning your first interview with Peter Grandich in responding to a recent listener coment on Christianity vs Capitalism I must comment: May I remind everyone that the Capitalist and the Clergyman where first in line in aiding the corruption of are freedom. To gain faster access to taxation the government weakend our resolve to resist our income from be taken from our paychecks by going to the capitalist and churchman with” bribes through exemption”. Only one true Capitalist in 1943 fought the good fight a Connecticut manufacturer a women named: Vivien Kellems she fought boldly the Constitutionality of the withholding taxes.Churchmen and Capitalist had reasons to support all actions by the government in the way of collecting taxes by law makers proposing laws that would exempt the incomes of institutions ( not opererated for profit) I call it bribes ,of coarse many Corporations through lobbist (another way of bribing) would try anything to avoid paying these taxes including corrupting our freedom both capitalist ,churchmen including Christians. Since WWII has been over for 60 years neither capitalist or churchmen has met with government to stop any form of this intrusion on are freedom!

Good Morning Joseph,

Of course, your point is well taken.

I was trying to make an entirely different point and that was, to call good Christians, good Jews, etc. bad people because they are PURE capitalists (definitely not what I call PREDATORY capitalists) is wrong.

Your point about the “bribes” is interesting.

Thank you,

Big Al

Hi Big Al and Pete,
Appreciate your courage in tackling this oft misunderstood and controversial topic of Christian conduct as it relates to Capitalism. I agree with you and Pete. Let me just add my two cents.
The Bible never says anywhere that making a profit is wrong. Profit is your just reward or remuneration, that is rightfully due the operator who makes available products, goods, or services in a way that warrants the profit. Capitalism, as an “economic mechanism” is Biblical. However, people, both good and bad, can use this mechanism, either fairly or abusively. The mechanism is neither bad nor good, it’s how it’s used that makes it bad or good. Money is neither bad nor good, it’s just a tool of economics. It’s how it’s used and our attitude towards it that makes it wrong or not. It’s the “love” of money that is the root of all evil, not money itself. Money, houses, cars, boats, status, position, etc… are either just tools or they are idols. It’s the way that we view and treat them, that makes them good or wrong. Anything that we place before God and His values is an idol, but when viewed and put in it’s proper place, these things are just tools.
Thanks again,
Best to you all!

Big Al and Pete,
Just for clarification. My points above deal with arguments that people have thrown at me over the years. I’m not insinuating that you or Pete alluded to any of these positions or that you hold any of these beliefs. Just attempting to add to the discussion and make, what I believe, are some relevant points to the broader discussion.
Thanks again,

I feel the prices of PM stocks in USA markets will never move in line with the price of Physical metal since the world has lost faith in the so called First World Countries(FWC) and their markets including the USA the effect of that can be seen in other markets also. Secondly FWCs are not the main consumers of PM China And India are and they are used to Physical Metal Only. So I think it best to increase the allocation to Physical

I would like to thank Trader Rog for his honestly delivered insights. The benefits of precious metals and equities in an inflationary environment is clear; however in a deflationary state the benefits are less clear. Would you be so kind as to comment on how precious metals and equities would be protective in a deflationary environment in a future show (given that there are $600 trillion in derivatives out there)?

thanks

When you folks visit a sight, such as Premium Exploration in Idaho, is that a closed tour? I also own this stock and hiked this area, as a teen ager. Is it possible for some hick like me to be able to arrange a tour and/or visit the site the same time your check it out?

[…] with Al Korelin on this past weekend’s edition of The Korelin Report. The entire show can be heard here, or you may listen only to Rick’s segment […]

Re: Meadow Bay Gold Corporation (MAY) As of July 24th, 2011
Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price
May 05/11 Mar 15/11 Kennedy, Thomas John Direct Ownership Options 50 – Grant of options 60,000 $1.240
Mar 22/11 Mar 15/11 Reed, Charles William Direct Ownership Options 50 – Grant of options 100,000 $1.240
Mar 22/11 Jan 27/11 Reed, Charles William Direct Ownership Options 50 – Grant of options 100,000 $1.160
Mar 22/11 Mar 02/11 Reed, Charles William Direct Ownership Options 00 – Opening Balance-Initial SEDI Report
Mar 19/11 Feb 10/10 Fields, Terry Robert Direct Ownership Options 97 – Other -75,000 $0.100
Mar 19/11 Jan 27/11 Fields, Terry Robert Direct Ownership Options 50 – Grant of options 50,000 $1.160
Mar 19/11 Jan 11/11 Fields, Terry Robert Direct Ownership Options 50 – Grant of options 10,000 $0.150
Mar 19/11 Feb 10/10 Fields, Terry Robert Direct Ownership Common Shares 97 – Other -200,000
Mar 15/11 Mar 11/11 Estra, Jordan Direct Ownership Options 50 – Grant of options 200,000 $1.200
Mar 15/11 Mar 11/11 Estra, Jordan Direct Ownership Options 00 – Opening Balance-Initial SEDI Report
A lot of options granted!

Yep, David. I see a bit over 700,000. I also don’t see much in the way of direct ownership.

Kind of interesting.

Big Al