What Top Hedge Fund Managers Really Think About Gold

What Top Hedge Fund Managers Really Think About Gold By Jeff Clark, Senior Precious Metals Analyst In the January BIG GOLD, I interviewed a plethora of experts on their views about gold for this year. The issue was so popular that we decided to republish a portion of the edition here. Given their level of success, these fund managers are worth listening to: James Rickards, Chris Martenson, Steve Henningsen, Grant Williams, and Brent Johnson. Some questions are the same, while others were tailored to their particular expertise. I hope you find their comments as insightful and useful as I did… James Rickards is chief global strategist at the West Shore Funds, editor of Strategic Intelligence, a monthly newsletter, and director of the James Rickards Project, an inquiry into the complex dynamics of geopolitics and global capital. He is the author of the New York Times best-seller The Death of Money … Continue reading

How to Position Your Portfolio for the Coming Gold Upturn: AlphaStox’s Etienne Moshevich

The Gold Report: The metal mining sector is undergoing many of the same types of issues as the energy sector. What is your candid assessment of the near future for gold, silver and the base metals? Etienne Moshevich: My outlook for the sector is very similar to that of the overall energy market—the world needs gold and the commodity isn’t going away. It may go out of favor for a couple of years, which we’re experiencing now, but it seems as though the market is slowly starting to creep back up and this is the time investors need to be positioning themselves in high-quality management teams and projects before the market gets away from them. Although many things could change, macro signs are pointing to a turn in the gold market. Even though the U.S. dollar is still the strongest and most reliable currency in the world, more and more … Continue reading

Tesla: Bonfire of the Money Printers’ Vanities

Tesla: Bonfire of the Money Printers’ Vanities By David Stockman, Former Director of the Office of Management and Budget David Stockman needs no introduction, but I’ll give him one anyway. He’s a former US Congressman who, upon assuming responsibility as Ronald Reagan’s budget director in 1981, became the youngest presidential cabinet member of the 20th century. Following a 20-year career on Wall Street, David is now an outspoken critic of government stupidity. He argues on behalf of outdated notions like a balanced budget, free markets, and for the government to just plain leave us alone. Below, David shares a scathing financial analysis of Tesla… and that’s putting it nicely. He argues that Elon Musk’s company is a crony capitalist creation that owes its very existence to government handouts and bailouts. Dan Steinhart Managing Editor of The Casey Report Editor’s Note: This article was originally published in Casey Daily Dispatch’s Midweek … Continue reading

Gareth Hatch: New REE Export Rules Inside China Level the International Playing Field

The Mining Report: In early January on your Technology Metals Research blog you wrote, “China is still as much in charge of its rare earth elements (REE) supply as it ever was,” after China abolished export quotas in favor of an export licensing system. What is the Chinese government’s goal here? Gareth Hatch: It’s twofold. One is to get control of its entire REE supply chain, but it’s also about generating more revenue. China is going to abolish REE export tariffs, which is a requirement of the recent World Trade Organization (WTO) ruling, and that will happen in May. By doing so, China is saying, “We’ll sort of play by the WTO rules.” But Chinese officials are now talking about replacing tariffs with a value-added resource tax. “Alkane Resources Ltd. is funding the Dubbo Zirconia project with nearby gold production.“ Another noteworthy aspect of these measures is that a considerable … Continue reading

Could Apple Buy a Third of the World’s Gold?

February 27, 2015 By Frank Holmes CEO and Chief Investment Officer U.S. Global Investors Is there anything Apple can’t do? First it revolutionized the personal computing business. Then, with the launch of the iPod in 2001, it forced the music industry to change its tune. Against initial market reservations, the company succeeded at making Star Trek-like tablets hip when it released the iPad in 2010. And in Q1 2015, a record 75 million units of its now-ubiquitous iPhone were sold around the globe. The smartphone’s operating system, iOS, currently controls a jaw-dropping 89-percent share of all systems worldwide, pushing the second-place OS, Google’s Android, down to 11 percent from 30 percent just a year ago. As you might already know, the company that Steve Jobs built—which we own in our All American Equity Fund (GBTFX) and Holmes Macro Trends Fund (MEGAX)—is history’s largest by net capitalization. In its last quarterly report, Apple posted a record … Continue reading

Why Miners with Positive Cash Flow Deserve Your Attention: Philip Ker

The Gold Report: The U.S. dollar is worth about CA$1.20. In percentage terms, how is that translating to the margins of Canadian precious metals producers? Philip Ker: Margins are obviously a function of revenues minus costs. Our model currently uses $1,250 per ounce ($1,250/oz) gold and a $0.90 or CA$1.11 exchange rate. This means we’re forecasting CA$1,388/oz for Canadian producers, but a favorable strengthening of the U.S. dollar toward $1.25 or CA$0.80 would allow Canadian producers to realize gold prices around CA$1,560/oz—a 12.5% increase. “Balmoral Resources Ltd.’s Grasset nickel discovery is on its way to becoming a world-class asset.“ More recently, gold has risen alongside the U.S. dollar. Typically these two have a negative correlation but the opposite trend has provided a boost to many equities with Canada-based operations. In late January, a $1,300/oz gold price and CA$1.25 exchange rate meant a gold price in excess of CA$1,600/oz—a potential 17% … Continue reading

Outside the Box: Shovelin’ Schmitt Against the Tide

Outside the Box: Shovelin’ Schmitt Against the Tide By John Mauldin   There is an obsession in the marketplace over the date when the Fed will once again begin to raise rates. As if another 25 basis points is going to change the economics on tens of trillions of dollars of investments. But as we reflect on the issue more deeply, it becomes obvious that a minor bump in the fed funds rate will indeed change a great deal of economics all over the world. No, it won’t do much to the cap rate on your latest real estate purchase, but it is likely to greatly affect the pricing of the currency and commodity markets. And those markets will affect corporate profits, which will affect the stock market. It’s all connected. And what if the Fed has lost control? What if they are in a no-win situation where raising rates … Continue reading

Foreign Real Estate Is the New Swiss Bank Account

Foreign Real Estate Is the New Swiss Bank Account By Nick Giambruno Financial privacy is essentially dead. I think it’s only prudent to assume that sooner or later all the details of your financial life will come to rest in a government computer—if they haven’t done so already—and to plan accordingly. We live in a world where pretty much every penny you earn, save, and spend is stored in a permanent record somewhere and can be retrieved for scrutiny one day if needed. It’s not a comfortable or happy thing. But no matter how unpleasant it is, I believe it’s a reality we have to face. Knowing that you are financially naked and exposed to an insolvent government hungry for revenue might make you feel like you just ate rat poison for lunch. That said, don’t be tempted to try to illegally hide your income and skirt reporting requirements. It’s … Continue reading

A Math-Free Guide to Higher and Safer Returns

By Andrey Dashkov I can make you instantly richer, and safely, by explaining a finance concept with a story about a dog. There’s a hole in your pocket you probably don’t know about. You may feel instinctively that something is wrong, but unless you look in the right place, you won’t find the problem. The money you’re losing doesn’t appear in the minus column on your account statements, but you’re losing it nevertheless. Frustrated? Don’t be. I’m going to tell you where to look and how to stop the drainage. Volatility is every investor’s worst enemy. Over time, it poisons your returns. Unlike a 2008-style market drop, though, volatility poisons them slowly. There’s no obvious ailment to discuss with friends or hear about on CNBC. You only see it when you compare how much you lost to how much you could have earned—and looking back at your own mistakes is not a … Continue reading

Thoughts from the Frontline: Debt Be Not Proud

By John Mauldin Some things never change. Here is Eugen von Böhm-Bawerk, one of the founding intellectuals of the Austrian school of economics, writing in January 1914, lambasting politicians for their complicity in the corruption of monetary policy:We have seen innumerable variations of the vexing game of trying to generate political contentment through material concessions. If formerly the Parliaments were the guardians of thrift, they are today far more like its sworn enemies. Nowadays the political and nationalist parties … are in the habit of cultivating a greed of all kinds of benefits for their co-nationals or constituencies that they regard as a veritable duty, and should the political situation be correspondingly favorable, that is to say correspondingly unfavorable for the Government, then political pressure will produce what is wanted. Often enough, though, because of the carefully calculated rivalry and jealousy between parties, what has been granted to one has also … Continue reading