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 Alexander B. Korelin
Listeners to The Korelin Business Report have heard me singing the praises of gold investments for a long time. I started this tune when gold was trading in the very low $250 range, taking the advice of gold stockbroker Walt Raby, and I haven’t stopped.
The conversations I had with colleagues this past weekend at Joe Martin’s “Gold Show” in Vancouver, British Columbia strengthened my resolve and today I would challenge anyone who felt that the current strong markets associated with gold and silver were going anywhere but up.
Let me recount some of these conversations for you and see if you don’t agree.
My co-host on the Korelin Business Report, Paul Warren and I had dinner with Jay Taylor Saturday evening just prior to the Gold Show. As regular listeners to our program are aware, Jay is one of the most respected individuals in our industry and thousands of people seek his advice weekly by subscribing to his newsletter, Jay Taylor’s Gold and Technology Stocks.
We discussed the fundamentals behind why the precious metals should continue to rise in price. As Jay has brought up numerous times in the past both in his newsletter and on our program, one of the strongest of these fundamentals is the fact that the level of debt in the United States on the part of consumers, business and our government is frighteningly high. I agree with Jay when he says that when consumers are unable to borrow additional money, the economy will suffer tremendously. Historically, in a bad economy, gold and silver do very well and investors who heed Jay’s advice in a time like this could do very well.
We conducted four panel discussions at the Gold Show in Vancouver for our listeners and the opinions given during these discussions were well thought-out and valuable.
Our first panel, on Sunday morning, included Doug Casey, Laurence Raulston and Brent Cook. These are three very knowledgeable and successful individuals whose past writing has proven to be accurate.
Raulston’s advice to listeners was the same as he tells his subscribers, “Look for exploration stage gold companies with significant assets because the larger companies need these assets and are willing to pay dearly for them.” When this happens valuations of these exploration companies usually appreciates resulting in a lot of happy investors. (A good example is Northern Dynasty, which Laurence covered in Resource Opportunities some time ago when the stock was trading well under the $1 level. Today, after the news pertaining to the size of its Alaskan asset was released, the stock began trading in the $8 range.)
Doug Casey said that, “gold isn’t just going to go through the roof…..it’s going to the moon.” Doug is a guy who has made a lot of money in the market over the past thirty years and I take what he says seriously. He feels that a great way to take advantage of, what he predicts is becoming a “significant bull market in gold”, is to invest in gold mining stocks. In a recent article that Doug wrote he said, “The public will be chasing these things the way they ran after Internet stocks.”
For the wary, Doug said, “How do I know? Because I’ve been in this market for 30 years, and I’ve seen it happen five times in the past.”
He points to the peak years of 1973, 1980, 1983, 1987 and 1996. “This one will be the biggest of them all, because not only will gold be running, but the public – trained by the 1983 – 2000 bull market – all have brokerage accounts, and will be looking for the next hot sector.” (The three and a half thousand or so attendees at the Gold Show all agree with Doug that the next “hot sector” could very well be precious metals.)
Rest of the article.
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