There were basically 1000 people in a huge conference hall at the Hilton
Hotel –Jim took and answered questions the entire time.. I got there
15 mins early (1.45) & the place was packed already & it was obvious
he had already been going for at least a half hour – I left @ 5.30,
and he was trying to squeeze in a few more questions before they
kicked us out.. So basically he went on for 4 straight hours…
I have to say, this man is extremely impressive – The knowledge &
experience he has attained over such a long period (he was a market
maker when he was 19yrs old) – he’s seen it all, and experienced it
all, and he is able to articulate his knowledge to such a wide &
diverse array of people. Mostly I took away that he generally cares
about people – he wants to give back, and he wants to see the little
guy make it..
Anyway, I took notes which aren’y organized, but are all over the
place due to the town hall format.. This will be a long email, so
apologies, but I figured some people out there would like some cliff
notes, so here they are:
1 – When asked about keeping gold outside the US – he answered almost
all his Gold is outside of the US – its in Africa..
2 – Markets revalue ccys on a daily basis & this will continue for the
dollar. In his view there will not be a official devaluation, they’ll
just continue to cheapen quietly as they have over the past decade..
3 – He definitely follows some sort of cycles, and certain numbers are
significant (this is out of my wheelhouse but I took note anyway) He
believes Gold to 3100-3300 is a minimum & will occur between
2015-2017.. He believes the ccy crisis/end game will all play out by
2020-2021.. At that point gold will have settled in @ 4500 or so &
we’ll have to move on w/ our life..
4 – He doesn’t love the CAD, but if you must hold ccy exposure in your
portfolio he’d prefer a resource ccy like the loonie..
5 – He doesn’t believe that Silver has monetary characteristics, and
therefore wont maintain its price rise, although gold will. .He
doesn’t believe is Silver monetization
6 – Current financial system is like Sodom & Gamorrah (but less fun) –
However, don’t extrapolate into perpetuity – Things change/cycles
change/ and things will be different in the future –
7 – Ponzi schemes can work! – If they are accepted by the public..
8 – Silver could hit 100 in a speculative frenzy, but he doesn’t
believe it would stay there.
9 – You wont be able to break the Dow due to the enormous
liquidity..Buy pullbacks, it will be going higher… Its overbot & could
have a sharp pullback short term, but its a buy.
10 – For the youth – if you want a job in the future, become a
geologist, a good one..
11 – He doesn’t buy these FDIC insured Gold CDs.. Like any other
insurance, you have counterparty risk.. Buy the physical
12 – Doesn’t like the Perth Mint – Cost of moving from unallocated to
allocated is way too high
13 – Gold Co’s in the 1950s were yielding 15-20% – they were
utilities.. He believes they should be/will be again..
14 – He’s bullish gold stx – hugely undervalued, beaten down – Buy
whats cheap, not whats dear..
15 – Central planners actually believe they can pull this off & land
this plane.. They believe the economy will recover to bail us out, &
they’ll simply let the securities they’ve bot mature… Bernanke is a
academic, so he doesn’t understand how the real world works.. He
believes he’s right w/ all of this QE..
16 – Bernanke did save our a$$ after Lehamn.. If he didn’t act as he
did, we’d all be living in a cave as it would have been a absolute
catastrophy.. The error has been to continue it this long
17 – No exit to QE – No end in sight because there is not a true recovery..
18 – Bonds wont fall, yields wont rise because Ben can buy them
unlimited & he will..
19 – Someone asked why Sprott doesn’t go to the Comex for his 2b in
Silver & break the manipulation – Sinclair said he wont do it, because
“he’s a gentleman” He wont “break the playing board” – there is a
ethical code amongst these giant players.. He wont break an exchange,
because the entire system would then be against you.. Nobody will do
this.. They/We wont get this, we wont get instant satisfaction like
that.
20 – End of this crisis will come in 2021 – Move on to something else
like education or real estate.. Become a doctor or lawyer, or plumber
– develop a trade..
21 – I don’t understand this, but what are these Golden Angels +
numbers you see on his blog? There is significance in them & he leaves
clues, but I just don’t get it.. (can anyone shed light here?)
22 – If you want to get rid of criminals (banksters) you reduce their
profit margin – They’ll then go do something else.. I found this
interesting, because this is exactly what I’ve told you the regulators
are doing today..
23 – Retirement Accts – Stop contributing, pay the tax, & cash them
out… If you are at a firm that is matching contribution its different
because the company has 50% of the risk
24 – He’s not negative on the future, he’s optomistic for better
days.. You can’t stop living your life due to whats going on in the
world
25 – The EUR will outperform the dollar – They have already started
austerity while we haven’t – They have gold & mark it to mkt..
26 – There is no inflation because there is no velocity of money..
History has shown that velocity picks up when confidence is lost –
this is what you have to look for
27 – China is a Maoist nation, except they now want wealth
28 – BRICS are where the opportunity is – they are taking over & their
culture is very different to ours (they execute bankers, what do we
do?)
29 – Cycles & Cycle analysis wont take you to prosperity.. They aren’t
a road map, but he likes them for picking up divergences (i.e. this
cycle should be bottoming, but isn’t – this is a clue, telling us
something) Gov’t interference has rendered them useless..
30 – Alf fields is a legitimate human being who works hard at his
craft – he respects him & believes his Gold target will be met,
although he disagrees with why that would happen…
31 – Once we close above 1620, we’ll be on our way to 3500.. The lows
will be cemented
32 – There will be a transition from paper to physical, but I don’t
think its how most people interpret this.. He’s not saying the comex
will break or go away, he’s saying that the ability of the Comex paper
traders (who are arbitraging & spreading) to manage price will cease..
We have already been seeing this as paper traders will attacking gold
all day @ 1611, but the physical buyers were stepping up @ 1606.. I
found this interesting because AM also quoted 1606 as a key physical
pivot, so its obvious these men have contacts who buy physical in size
& they know where they are bidding..
32 – Only gold can increase the sovereign assets vs liabilities..
Ratio of a ccy’s gold to M3 will be the measure
33 – Fiat & fractional reserve banking will continue to exist in the
new world, but the ccy will take its cue from M3 based on physical
34 – By flushing Lehman, they ruined their chances/ability to net down
all of the derivs.. They could have done a S&L & put them all in a
“bad bank” to net them down/wnd them down – but we blew that
opportunity
35 – views the London fix as meaningless – its like libor
36 – Gold at minimum to 3100-3300, by 2015-2017, then up to 4400 – You
should then be selling!
37 – On miners – they should use their gold to fund their operations;
don’t dilute shareholders.. He vowed to never issue another share in
his company – The float wont go above 100mm (place erupted in
applause)
38 – 1764 was ruthlessly attacked by the sghorts & is now major
resistance.. Funds were duped into thinking bail-ins would replace
bail-outs – this has now been proven wrong by the Cyprus rejection
39 – Learn to sell your gold – Don’t “hold it for your kids” Rather,
when the chart is a rhino, sell a third, when its a fishing line, buy
it back.. If it runs away before you get your third back, laugh all
the way to the bank
40 – China doesn’t want to be a world reserve ccy – they don’t want
that responsibility/burden. Rather they want to be the ccy of choice,
not by decree.. they’ll do this by amassing 15% of reserves in gold ..
everyone will then want Yuan
41 – US devalue wont be overnight – daily mtm
42 – If/once they can’t QE, they’ll come for the retirement accts –
You have 2 years to figure it out…
43 – Wonderland mentality w/ QE is skewing cycles and any measurements
of activity -they’ve created a false economic world..
44 – Gold is alien to institutions & fund managers – Not how they’ve
made their money, not what they’ve been taught in school or at work
45 – Mgmt of Gold Stx are the worst out there
46 – His goal is to get us out of gold at the top – Only then will his
job be done..
47 – China lies about their gold reserves – These people plan for
centurys, America can’t even plan for tomm
48 – Future of the BRICs is brighter than that of the US – They aren’t
strangulated by debt…
49 – Saudia Arabia is no longer prominent – They bot everyone off, but
now they are running out of money to do so.. They contribute to the
red cross + to al quaeda
50 – Petro dollar is trending towards less use..
51 – Physical is starting to win – Haven’t been able to push gold
below 1600, but they have certainly been trying… Each day we hold here
is a positive
52 – When he called the gold top in 1980 he received many death
threats, credible ones.. Not the “I’ll kill you man”
53 – Someone commented how did he know we’d be @1600 by his birthday,
almost like he has insider knowledge, similar to some of his other
calls.. He commented he’s been in this business for 50 yrs & people
come to him for advice & they offer info to him as well in return..
He’s got a leg up on all of us from that standpoint..
54 – Comex traders will start getting nervous when they realize they
can’t take us lower.. They’ll cover (remember from before, these guys
are arbitrage & spread players)
55 – In regards to interest rates – Someone asked about variable vs
fixed.. He said once DXY goes below 72, get out of all variable
instruments & go to fixed(home equity/mortgage) .. I personally found
this a particularly usefull tidbit of info..
56 – If hyperinflation came, it would be extremely nasty but would
only last for about 90 days.. They’d then reset the system
57- The American Dream belonged to his generation… its now been
screwed up for the rest of us.. We can’t undo whats been done, no
going back.. He wished we could have grown up in the 50s – Life was so
much easier then.. He’s happy he is his age, but fears for his kids
58 – Have your kids learn Mandarin – It will be a usefull skill
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