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From the Metals & Minerals Investment Conference

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November 30, 2013

Hour 1 :

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Hour 2:

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Our show this week originated from the 2013 San Francisco Metals and Mining Investment Conference.

Hour 1:

Hour 2:

  • Segment 5 – The Bulls and Bears Panel discusses if they believe the gold is in Fort Knox.
  • Segment 6 Daniela Cambone discusses the important role played by Kitco in keeping investors informed.
  • Segment 7Bob Moriarty of 321 Gold discusses china and it’s implications on investing.
  • Segment 8 -Cory and I are honored to have Dr. Ron Paul take some time from his busy schedule to help us wrap up the Show.

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Discussion
75 Comments
    Ann
    Nov 30, 2013 30:54 AM

    Awesome interview with Bob M.Jay Taylor interviews him next tuesday.should be very interesing as usual!!

      Nov 30, 2013 30:36 AM

      quite a short time frame 1- 3 months is predicted by Bob M. although Al states the Chinese are long term. Bold predictions, we will see how it plays out.

        Nov 30, 2013 30:36 AM

        My start date, Bobby, was a long time ago!

      Nov 30, 2013 30:15 AM

      another point of view, PRO US and North America.
      http://www.financialsensenewshour.com/broadcast/fsn2013-1130-2.mp3

      Nov 30, 2013 30:35 AM

      Bob is definitely an interesting guy!

        Nov 30, 2013 30:01 PM

        PUT SAME CANCER IN YOUR BASKET OF CURRENCY AXEL MERK IN TOKYO OK

          Nov 30, 2013 30:15 PM

          JIMMES DINES IS A MORONE AND HIM NEVER NOW WEN TO SELL !!!!!!!!! Catholic But t LIGGER !

            Nov 30, 2013 30:20 PM

            BOB Moriarty 100 % agree Allied Nevada Gold ! ON china USA EUROPE YOU RONG 100 % ! NO WW3 OK

    Nov 30, 2013 30:32 AM

    Ditto Ann.

    Nov 30, 2013 30:05 AM

    Always look forward to a segment with Bob M! Thanks!
    Jody D

      Nov 30, 2013 30:00 AM

      Bob is interesting, no question. I do not agree with his assessment that China is going to gold-back its currency anytime soon though. That is extremely unlikely to happen. Ask yourself why they would have spent years managing the Yuan for trade and export adantages and then overnight abandon that principle and go with a currency that is suddenly the strongest in the world? Let’s not assume they are a bunch of idiots bent on single handedly destroying their economy overnight and distorting the pricing mechanism by weakening eeryone elses currencies by default. Unemployment would skyrocket, factories would close, trade would grind to a halt and capital flows would reverse giving China the buying power to shop the globe while having a withering effect on its foreign exchange reserves. That is the position the US is in of course while it runs massive trade deficits and it is the fate of most countries that have the reserve currency. What that offers is tremendous buying power but it comes at the cost of the export economy. Honestly, I think the Chinese are too smart for that. It is why they are pushing for SDR’s as that would allow them the necessary liquidity of trade with even more countries than at present without being hamstrung by the limitations of the dollar. I very much doubt they want to do anything more than selective trade in thier own currency at the moment while leaving the liabilities associated with a reserve to others. At this point it appears the Chinese have simply chosen gold as one of its diversification strategies and nothing else. They were badly in need of catching up with the reported gold holdings of the US and most of Europe anyway so what they are undertaking now with thier acquisition process is just balancing and fortifying their banking sector. I don’t put any stock whatsoever in the idea they will go with a (very) strong Yuan policy and especially in light of how adept they have become with credit expansion. Gold backing would hamstring their expansion in a heartbeat. Anyone who is falling for this idea of Bob’s please write and explain to me the mechanics of how it would benefit the Chinese and thier economy to undertake such a radical plan at a time when the whole globe is busy monetizing debt and expanding the money supply and credit (including the Chinese themselves at a faster pace than almost anybody else).

        Nov 30, 2013 30:09 AM

        Look for an Editorial with Bob on this subject.

          Nov 30, 2013 30:21 AM

          Hi Al. That was a fast response. You got an alarm set on my posts or something! Anyway, I am looking forward to hearing what Bob has to say. It makes absolutely no sense to me so perhaps he can clear up his idea with a practical explanation on how China would benefit in the current environment. I do incidentally see the potential for partial gold backing of some currencies in the future but only in the situation where trust between countries had been so eroded by excess printing and/or debt failures in bond markets that the normal relationships we depend upon for fluid trade and exchange were wholly ruined. That is obviously an exception situation though and not one that has a high probability where everyone devalues together. Lets keep in ind that the Chinese themselves are also faced with having to devalue in relative terms or they will be left standing alone as an import nation. I do not believe for a second that they have totally abandoned their program of dollar pegging. Watch what they do, not what they say.

            Nov 30, 2013 30:36 AM

            The Weekend Special is now up, Bird.

          Nov 30, 2013 30:29 AM

          why not set up a head to head debate between bob and bird? Now that would be interesting.

            Nov 30, 2013 30:36 AM

            I don’t set up debates between good friends!

            Ann
            Nov 30, 2013 30:04 PM

            Wow, that would be interesting,but as the BM admits himself,swears a bit too much for the general public.

    seg.7………BOB M….says he is going to come up with 10 to 12 companies to look at….
    Note to BIG Al….. you should have this list on the site…..for those who do not read 321gold.,,just a suggestion…………thanks ootb……….

    Nov 30, 2013 30:20 AM

    The Chinese used to refer to The US as a ” paper tiger”, what they really meant is The US is a “FIAT PAPER TIGER”, quote, unquote. DT

      Nov 30, 2013 30:38 AM

      More and more truth to that statement!

    Nov 30, 2013 30:40 AM

    Doug Casey likes to point out that people need to have a safe place to take their house and their capital to in times when their own government becomes oppressive.
    If you lived in Toronto and were to walk through our downtown streets you will see a boom like no other, this beats anything that New York had in the 1920’s and the people that are in this area are almost 90% Asian. This comes from a guy who has boots on the ground, I see this everyday. DT

      Nov 30, 2013 30:40 AM

      Machine Gun,

      That is getting to be true all over the Northwest, both the US and Canada!

    Nov 30, 2013 30:43 AM

    About segment 7.
    Enlightening thoughts. Thanks Al and Bob for bringing them.
    China has the monetary capital to keep the euro/dollar currency value disparity in balance for a while. Since the beginning of the Greece debt crisis the Chinese are going on the offensive (massively purchasing Greek government bonds in 2010). And this week again, new affirmation in Romania: http://www.reuters.com/article/2013/11/25/china-euro-idUSL5N0JA2U120131125

      Nov 30, 2013 30:41 AM

      They are a brilliant group Anna!

      Ken
      Nov 30, 2013 30:08 AM

      Anna! We haven’t heard from you in years! Where have you been? Are you still in Germany?

      And I have posted another funny video just for you.

      http://www.youtube.com/watch?v=tB8D2QZ9lA4

      Although it is a little late for Halloween. Sorry.

        Nov 30, 2013 30:50 PM

        Hi Ken! Yes, I´m back after exactly 23 months of silence! It´s better to disappear “from the screen” during a little period of time before being dead-and-alive for the readers.
        I´m happy to get one of your funny “highlights” after “all these years” again 🙂
        Is it a new kind of “incognito drone strike”?

          Nov 30, 2013 30:56 PM

          And Ken, I´m still living in Merkel´s socialist republic!

            Ken
            Nov 30, 2013 30:04 PM

            Good to hear from you again, Anna.

            I’ve just finished reading a book called, “Hellstorm” about the treatment of the German people during the end and a few years after the end of World War II. Such unamibinalbe barbarism by the Russians, Poles, Slavs and even the Americans, British and French. (Eisenhower even had death camps for German POWs.) Could this possibly have been true? (I know operation Keelhaul was true but that was repatration of Russian POWs.)

            Dec 01, 2013 01:10 PM

            Anna cannot speak openly – zey too heff zer version of NS(RSH)A.

            “unamibinalbe” – is that something racist?

    Nov 30, 2013 30:41 AM

    When Bob M talks about how The Dutch, The French, The British…., had their century of empire that was only possible because they were the economic masters at that time, the military ambitions precipitated the end of empire and their downfall. I don’t know whether I would agree with him about The French, The Age Of Napoleon only lasted 20 years, but The Romans who mastered empire building had a decline and fall of over 1000 years. DT

      Nov 30, 2013 30:11 AM

      Good point, Machine Gun

    Nov 30, 2013 30:44 AM

    Great Show Al
    What a line up, Rick Rule, Ron Paul, James Dines, Adrain Day, …
    The Best of the Best -:) Most be one of the best shows ever -:)

      Nov 30, 2013 30:53 AM

      Dr. Ron Paul would have been the best US president ever.

        Nov 30, 2013 30:12 AM

        Anna, I have to agree with you!

      Nov 30, 2013 30:12 AM

      Many thanks Thomas!

    b
    Nov 30, 2013 30:52 AM

    Bob Mentions, allied nevada @ $3 and were $48 a share. Reminds me of teck.b after the 08 crash, they were down to $3 and also had been $48 a share. They went back to high $40s.

      Nov 30, 2013 30:32 AM

      yep those poor suckers need only a 16 bagger to break even.

        Nov 30, 2013 30:37 AM

        Gotta tell you Bobby, I think that we may see more of these!

    bj
    Nov 30, 2013 30:56 AM

    The price discovery mechanisms have been destroyed across the board, not just PMS. The true cost of everything has been destroyed via manipulations, thus the confusion among ‘investors’.

    Labor: earned income tax credits and food stamps.
    Agriculture: subsidies for everything and crop insurance that paid more for failed crops that its ‘market value’.
    Manufacturing: special interest subsidies galore.
    Stock market: plunge protection team
    Bond market: Fed interventions
    Gold: central banks and elite Wall Street ‘banks’ using fractional reserves and naked shorted beyond anything ever seen.
    Real estate: Fed continues to but up mortgage backed securities.
    Food: price increases leverage with smaller portions in same size containers.
    Government: fungible moneys flow in around and through treasuries (it used to called co-mingling)
    Plus I’m sure I missed some. The free markets have been displaced with hocus pocus ……….

      Nov 30, 2013 30:13 AM

      That, bj, is a very good point!

        Nov 30, 2013 30:17 PM

        bj,
        excellent points!

    bj
    Nov 30, 2013 30:58 AM

    I think I agree more with Big Al than Ron Paul regarding the withdrawal of welfare money from our society. Johnson’s Great Society (welfare state) was in part a response to the race riots in Watts and Detroit in the 1960s. We paid and continue to pay to this day the ransom domestic civil obedience (not disobedience) to the black community to keep them from rioting. Now that we’ve run out of money and ‘good credit’ it’s going to get very interesting.

      Nov 30, 2013 30:15 AM

      Your thoughts are my thoughts on this one exactly bj.

      I don’t think that it is limited to the black community anymore though. It may represent the most obvious segment, but certainly not the only one anymore.

        bj
        Nov 30, 2013 30:31 PM

        Agree. It was born out of the race riots, but now too many of all races have more of a sense of entitlement than a sense of personal responsibility.

        How iron JFK uttered, “Ask not what your country can do for you, ….” So they shot him! Now today, everyone is asking what the nanny state can do for them, including corporations. Indeed we’ve come a long way in the wrong direction.

          Dec 01, 2013 01:38 PM

          Completely agree with you BJ.

    b
    Nov 30, 2013 30:07 AM

    Al mentioned New Legacey, this is from Bob M article 321 gold.
    Bob calls it a “crapshoot” but he calls lots crapshoots, his idea is to cover lots of bases and the ones that hit pay for the misses.

    NuLegacy Gold (NUG-V) has an interesting JV with Barrick Gold in the Cortez Trend of Central Nevada. Dr Steininger of NuLegacy has a theory that the exciting set of three major (15 m ounces+) discoveries in the Cortez Trend extends to their Iceberg Gold Deposit. These major mines occur every 7 km down the trend to the Southeast. It will take some money for drilling to prove the theory but Chairman Albert Matter has managed to raise money even in this worst of times.

    If NuLegacy hits big, the shares will rocket higher. It’s a crap shoot but with the mining industries best geologists throwing the dice. He discovered the Pipeline Deposit in the same trend 23 years ago. He knows the district better than anyone else.

    Like Als diversification thinking, diversifying right now with about 100 different goldstocks would probobly pay off bigtime. If gold goes up of course. lol

      Nov 30, 2013 30:16 AM

      My thoughts exactly, b!

    Nov 30, 2013 30:11 AM

    Ref Bob M’s segment 7 several king-size black swans seem ready to swoop and kill off all further U.S. pretensions to her imperial delusions. Bob refers to the total stranglehold that China has over the dollar by (1) threatening to sell $3.66 trillion in Treasury reserves, while (2) colluding with Saudi Arabia by buying oil in a currency other than petro-dollars. One or both of these tactics would implode the dollar while sending PMs on their long delayed journey into space.

    No question that China has the States by the short and curlies, as is borne out by its newly imposed Air Defence Identification Zone (ADIZ). For if Taiwan, South Korea and Japan choose to flout these restrictions under the wing of American B 52 bombers then we could have the fuse lit for WW 3. The Economist suggests that China’s aggressive behaviour might be that of a testosterone-induced teenager just trying it on. But then again teenagers often don’t see how their bravado can easily get misconstrued.

    Or what if Russia/China aid and abet Saudi Arabia over oil? The so-called ‘historic deal’ as it was referred to by Obama in reining in Iran’s nuclear programme is nothing of the sort. Israel’s premier describes the ‘historic deal’ as a ‘historic mistake’ since Iran quite brazenly understands the new treaty as in no way, shape or form suggesting that a halt be called to its nuclear enrichment programme. Israel and Saudi Arabia’s 90% Sunnis ain’t happy bunnies, who no longer identify the USA as their ally. Iran is 90% Shia and with this uranium loophole in place the on-going alliance with Syria might well serve to accelerate WW 3 in the Middle East.

    Sorry to present such a bleak scenario.

      Nov 30, 2013 30:18 AM

      Reverend,

      I personally don’t think the situation with China will develop into much of anything.

      The situation with Saudi Arabia, Russia and China is much more interesting.

        Nov 30, 2013 30:41 AM

        Agree. Just sabre rattling. The Chinese are a little miffed that Japan is ramping up exports via a steep devaluation and that it is doing so at China’s expense in Asia. Raising a regional ruckus means that Japan will secure fewer sales inside China and thus blunt the advance. Business as usual just under a different methodology.

      Nov 30, 2013 30:22 AM

      Anyone who would suggest that The Chinese are like testosterone induced teenagers hasn’t read any Chinese history which predates all of The Western World. Just take one incident that happened in China around 1900 when they had “The Boxer Rebellion”. The Chinese have had to live through the cruel effects of Western Imperialism on their own soil. They understand us we do not know or care to study their history. DT

        Nov 30, 2013 30:38 AM

        And that Machine Gun (not studying their history) is amazing to me!

        Nov 30, 2013 30:19 PM

        DT,
        SO TRUE…..so true!

      Nov 30, 2013 30:37 AM

      Andrew, China has not threatened to sell off their hoard of Treasuries as Bob stated. They have merely said it is no longer in their interests to keep acquiring foreign exchange at current levels and that would apply to all foreign currencies (not just USD). Nor have they said they will not buy more Treasuries in the future so I don’t know why this connection is being made. China continues to hold very substantial amounts of US debt and has simply done some rotating into shorter term instruments like Fannie Mae etcetera. Net holdings have dropped a mere 23 billion from their hoard of 1300 billion total since last spring. Hardly even a newsworthy event as you will notice from the Treasury sales charts that purchases do rise and fall over time. This is not all that unusual. Only that the story is being blown out of proportion as typical on the internet.

    joe
    Nov 30, 2013 30:22 AM

    Al, you don’t look Chinese

      Nov 30, 2013 30:54 AM

      Joe, That’s not all, Al will be 39 tomorrow it is time to dust off the violin. DT

        Nov 30, 2013 30:41 AM

        I am actually going out in about an hour to play nine holes of golf in the fog and the rain just to say that I did it!

        Everyone here thinks I am crazy and I think they are all pussies.

      Nov 30, 2013 30:40 AM

      That is because I am 1/2 Russian; 1/4 Polish; and, 1/4 Greek!

      My grandparents ran as fast as they could from Russia in 1917. Good move, don’t you think!

    b
    Nov 30, 2013 30:29 AM

    Mexico’s notoriously violent drug barons have turned to mining to both expand and diversify their sources of revenue, engaging in the direct ownership and operation of coal and iron-ore mines, especially along the US-Mexican border.

    The cartels reap immense returns from the sale of coal to state-owned companies, often obtaining profits as high as 30 times their initial investment, while also obtaining an effective channel for money laundering.

    CTV News reports Mexican authorities have confirmed these Mafia-style organizations have recently been found to also be exporting iron ore to China, and that the Nov. 4 military takeover of Lazaro Cardenas port, the country’s second-largest, intended to put a dent in the cartels’ export trade.

    According to Mexican human rights groups, since the infiltration of the Zetas drug cartel in the industry, Mexico’s most violent and feared gang, miners are no longer allowed to utilize what limited safety protocols they previously had access to, making the environment all the more hazardous.

    That gang, and recently others such as Knights Templar and La Familia, reportedly use their own poorly paid workers, many of them children, or they buy minerals from small-time miners who do not have alternative, but cooperate. Resources are then resold at a profit several times greater than the initial investment.

    In addition to obtaining immense profits from their mining ventures Mexico’s drug cartels can also avail themselves of a convenient means of legitimizing and diversifying their earnings. Licit high-income businesses make it easy for the cartels to launder their illegal proceeds.

    The entry of Mexico’s drug cartels into the mining sector has a nearby precedent in Colombia, where local drug barons often took up stakes in gold and coal mines.

    Ya gotta love the “war on drugs”. It seems we now have to ask ourselves when we buy shares in companies mining in Mexico if we support the drug lords.
    I guess the american government sells them guns so maybe its ok, I dont have a clue but I really wish people would realise that pohibition doesnt work.
    My preacher nefew was telling me how bad majiuana is and his church has to oppose its legality.
    Really? Well, I dont no but it seems now that investing in companies mining in Mexico is also a moral issue.

      Nov 30, 2013 30:43 AM

      Your key statement is that “prohibition does not work!”

      Thanks b!

      Nov 30, 2013 30:45 PM

      An amazing story, B. First I have ever heard of it.

        b
        Nov 30, 2013 30:52 PM

        Its from “Mining news”. I thought so too
        I did hear of this possibility a couple of years ago, this article just kinda confirmed it for me.
        Actually, if I recall, Paul Sabora of gng addressed publicly this issue saying he had no problems with the drug gangs. (some years ago) Maybe because he is not producing?
        I have to wonder about Timmins, Great Panther and a few others now tho.
        Like we dont have enough risk as it is.

          Dec 01, 2013 01:40 PM

          According to Bruce Bragagnolo it is a non issue.

    Nov 30, 2013 30:03 PM

    Our mayor and his brother councillor have their own radio program on you tube, they call it Ford Nation, I used to call it the Rob and Doug show but now the media refers to it as “The BOOB TUBE”, how apropos. Just wait for December the 6th when The Police Chief in Toronto releases the rest of the revelations on Rob Ford, the Boob Tube will come alive. DT

      Dec 01, 2013 01:41 PM

      You mean there is more, Machine Gun?

    Nov 30, 2013 30:39 PM

    Did anyone see Untold History of the USA Oliver Stone? A great series.
    Same crap different day. It’s time humanity awoke but most likely a 1000 yrs away.
    Pretty sure won’t be here I bet or in a 100….

    Nov 30, 2013 30:44 PM

    What were we typing about last year?

    On December 1, 2012 at 12:38 pm,
    Dennis M. O’Neil says:

    “Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives.”
    -James Madison

    I have never missed the irony when reflecting on many of Madison’s insightful quotes that his name has been given to the street from which most of our societies’ misinformation is generated.

    Reply to this comment

    Dec 01, 2013 01:40 AM

    I always review the segments before I listen. And as always I skip everything to wherever Bob M. is at and start with that. He’s by far the most interesting.

      Dec 01, 2013 01:45 PM

      I don’t know if he is the most interesting but he is certainly right up there!

    Dec 01, 2013 01:43 PM

    Bob M thinks outside the box…

    Dec 01, 2013 01:48 PM

    A nation of agressors, accomplices and confidants that has commited atrocities and has lost the war deserves reprisals. Don´t ask me about justness. One of the numerous German murders as Wernher von Braun has been “recycled” by the Americans.

    Dec 03, 2013 03:40 AM

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