Morning Bill T,

My mistake, of course I am.

Thanks for the correction!

Big Al

Morning Jerry,

Actually, I am not particularly found of most Spanish wines that I have tried.

How about you?

Big Al

by the way, thanks for having Butler on ….great input

If Buffett is buying the stock of a distressed company you can bet YOU, the taxpayer, will be paying for a bailout.

Buffett is nothing but a criminal crony capitalist but since he helps write the rules what he does is perfectly legal. And YOU and YOUR KIDS will pay.

http://biggovernment.com/whall/2011/11/15/capitol-cronyism-obama-backer-warren-buffett-helped-shape-bailout-rules-then-made-massive-profits-from-them/

Hey Jerry,

Give me some examples of small batch gins.

Thanks,

Big Al

Morning James B,

Hard to disagree.

I, personally, have to agree with James T.

Best,

Big Al

…..How about..”.George Berkeley”-.IRISH philosopher…1690’s
for he did say….”nothing turns out to be so oppressive as a feeble government”

Morning Anna,

Number one, I agree with you re: precious metals.

Number two I appreciate you input re: the guests. My challenge is I have time constraints on the Weekend Show because of the set times for the segments.

I will again discuss this issue with Alan Butler keeping your comment in mind.

Best,

Big Al

Currencies don’t float, they sink at varying rates. Gold rising in all currencies is proof of this. FDR devalued the dollar by more than 70% by decree. That was very sudden. Central bankers today have, so far, opted for a market led devaluation. This does not mean that they won’t, at some point, and under terrible circumstances, become much more active. As John W. Robertson pointed out, it could be the announcement of a huge QE 3. “Shock and Awe” does work on the markets. The bursting of the U.S. T-bond bubble would send the biggest funds in the world panicking into gold. The resulting rise in gold would equal a sudden devaluation of the dollar. To a great degree, all other currencies are likely to fall a similar amount since they are ultimately dollar derivatives. When you combine fear and greed with an ever expanding understanding among market participants, big moves in gold are sure to become quite sudden as this bull market matures.
Over the last decade, the decline in the value of the dollar (and therefore all currencies) has accelerated dramatically. It will accelerate further as imbalances grow and resolutions becomes more urgent.
It’s worth noting that, at least hypothetically, the dollar could go to zero value without the USDX breaking down.

You know Jerry,

As I said, I have known Larry for a long time. He is a very interesting man who has been successful, for the most part, over the years.

Hard to disagree with what he said. But, we all have to remember to consider all opinions and then make up our minds.

I am going in the direction of buying silver on Monday. Will let you know.

Big Al

In which country are you living Edward?

You live in Cawleefornia (as Ahhnode sez)?

Well, it sounds like you are going to be voting on several tax increases next November.

And if the DemoNcrats get two-thirds majority in the legislature they can pass any tax increase they want.

Go Aztecs!

Big Al

hey, Marc…..did they ever get that “exit tax” passed….they were trying to get
you guys to pay a 50% exit tax if you left the state…because there were so many people leaving….

You hit the nail on the head. I am convinced that Jon is there so that Kitco does not give the impression of being biased.

I have not spoken with Jon for over a year and you have to admit that he does give, I guess what you would call, balance.

Remember, none of us have to agree!

Big Al

You are SOOOOO right as well. Mr. Nadler, the legendendary expert in his own mind has been a joke for the seven years I’ve tuned in to kitco for various things

was that the Faulk who played for the INDY COLTS?

Yep, I will for sure. Looking forward to watching the game!

Big Al

Morning Keep Stacking,

No, you really have two different currencies. But, we have to remember that today all currencies are very, very inter-related.

Best,

Big Al

Hi James,

I will definitely keep you posted on this situation.

My personal feeling is that if the decision goes against Rye Patch you will see a drop in share price.

That certainly does not mean that it is not a good company. I truly believe that it is. (Not investment advice!)

Big Al

James
This show is the absolute BEST on the web…!!!!
All the best

Hi Dale,

Many thanks for the kind words.

Makes my weekend!

Big Al

Dale,
I came across this article on Market Oracle, which is worth taking a look at. I’ll pull a section that accompanies a pyramid graph that should be looked at (with physical bullion a the foundation, and the junior mining shares at the apex.)

Here is the pasted section:

Mining stocks and bullion are entirely different asset classes. During a rising trend mining stocks are often correlated to the metals; however, in a downturn such as we experienced in 2008 they can become more correlated to the broad equity markets. Because bullion is a safe haven during financial crises, it tends to outperform mining stocks during turbulent times – often quite dramatically.

Of course, there are several categories of mining stocks, and each of these categories has a different risk/reward relationship and volatility profile. From a risk perspective, exploration juniors are at the top of the pyramid; further down are companies that have discovered reserves but are in feasibility analysis or in permitting; further down still are the producers.

But since most mining companies do not pay dividends and have a depleting asset base, they are more suitable for short-term speculation than long-term wealth preservation or portfolio insurance. Again, without a physical bullion component, portfolios are neither balanced nor diversified.

And here is the article link:
http://www.marketoracle.co.uk/Article10198.html

p.s. – reading the article has made me want to consider selling my shares (at a 30+% loss.)

Hi Dale,
My thoughts exactly. I did sell some for tax loss purposes but am holding most. I have also taken profits along the way. I do believe at some point I will be very happy with thier performance. After all, with more people buying physical there is bound to be a shortage which is when the mining stocks will really perform

Thanks for the link, Mr. Martin!

Big Al Korelin

Karen…..great listen to….thanks ……I posted the other day Egon von Greyer another great listen to ,,,if anyone goes to the web site ,check it out….

Thanks Karen,

Yep it was a good one and fun to put together.

Big Al

CLAY a bigger percentage than you think…..
People still do not get it….
but.,,,,Kyle B….may alert some more big money….sooner or later all heck will
break loose…..but, when, who knows….but, you can bet that there will be plenty
of shake outs along the way….Gartman is a good example of a shake out, and one
who does not have a clue…

You know, you talk about people being pushed into poverty, listen to today’s second Daily Editorial.

Big Al

Al: Happy to know you are not depressed. Perhaps it is my ears that are depressed. More likely however, it is my brain between my ears that is depressed.

I know to a fact that the great majority of people throughout the world are good people, but why is it so many leaders and those in power are not good people? Is that just my perception? I don’t think so because there have been and still are some really great people who have suggested the same. I have been and lived in over 40 Countries around the World in my life and in nearly all these places I have come to know that poor people can be trusted more than wealthy, and it is not poor people who work for or control governments it is the wealthy. In some places, most specifically the US, if a poor person happens to go to Congress they always come out wealthy. Power corrupts and absolute power corrupts absolutely. A single poor person has very little power, but a wealthy person does. A wealthy person can do wonderful things, like George Washington, Adams, Jefferson and more, but a wealthy person can also do terrible things like Nancy Pelosi, Warren Buffet, George Soros and so many more. There are so few of the former and way to many of the later.

Vote for and give support to Ron Paul, he is a good choice to save America all the rest won’t.

NO

reg cole…..does anyone really know what the money supplies is, or actually the change? Do you really believe the govt. stats?
Better go listen to John Williams…..if you do not know who he is , you may do yourself
a favor and check into it.(not trying to be smart)….respectfully….Jerry ootb

I´ve had a look on Paul van Eeden´s website.
In my opinion, he made a mistake by calculating his Theoretical Gold Value.
He omitted to interact properly his own datas of money supply AMS(historical chart) with those of the gold value.
Based on his own numbers I come to the result that today´s Theoretical Gold Value should be $1,710.43 instead of $850.82 . The correction seems to reflect more the actual gold price but some analysts affirm gold should be by approx. $2,500 inflation adjusted.

I agree with Karen. The worst thing about pink sheets listings is liquidity (low trading volumes) and price. Market makers usually get a fraction of a cent per share on each trade.
As long as you always use limit orders and patience, you should be fine. Of course, it will be much easier to exit when sector-wide enthusiasm returns. Liquidity will rise while bid/ask spreads will fall; making a fair price easier to attain.
Beyond all this, you’re risks should be about the same as those of us who buy on the TSX venture exchange.

I forgot to mention that I’ve used the pink sheets in the past, and my son still does. SIPC insurance applies (up to $500,000). Those affected by MF Global in the futures market were not covered by SIPC.

HI Brian,

If you want to trade Canadian mining stocks, I would suggest you call a Canadian stockbroker or a U.S. broker who is well versed in this arena.

I will put up a list of brokers who I know that can help.

Best,

Big Al

Bobby…….never thought of Peter,,but,you have a great point…