Bill
Murphy of GATA.org
returns to the show with fresh insights on the recent
PMs shares rally that continues to parallel the success
of the US shares.
One
positive contrarian indicator, coin shop owners are
telling our guest that demand remains sluggish, despite
the strong upward market activity.
John Q. Public has yet to jump on board the gold rush,
a big indication of enormous pent-up future demand
for the metals, a coiled spring.
The
price action is wildly bullish, for 4 consecutive
weeks amid an epic rally the bears failed to maul
the market.
Every
pullback resulted in resiliant price action, an extremely
bullish sign that typically occurs most frequently
in nascent bull markets.
Our
guest is convinced that the PTB pulling the strings
behind the market curtain, manipulating the price
via dumping enormous tons of gold and silver.
Key
strategic price points are running low on bullion
to sell, just as demand is reviving.
This
combination punch could present PMs bulls and the
public a key opportunity to procure bullion at a reasonable
valuation.
Key
takeaway, silver remains the most important industrial
PM and the 2nd most important semi-precious metal
behind only copper selling around the cost of production
or lower, making the current price at over 90:1 gold
to silver ratio could be viewed as a firesale in the
years to come.
Bob
Hoye, Editor & Chief Investment Strategist of
Bob Hoye.com
rejoins the show with his view on why gold is the
"go to" asset of the next decade.
Bob
Hoye notes authoritarian forms of governance are struggling
to salvage the global economy using outdated draconian
economic measures.
He
and his colleague define 3 key measures of market
bubbles: momentum, pattern and sentiment.
Financial
history rarely repeats, but it certainly rhymes according
to our intrepid duo.
History
reveals that financial market manipulation and human
psychology combined with leverage rarely ends well.
The
market bubble theme echoes throughout history even
today, resulting in the greatest financial bubble
of all time, threatening global hegemony.
Chris
encourages investors to invest wisely via portfolio
methods, instead of falling into the trap of forecasting,
to outsmart millions of sharp investors.
The
odds competing with up to a billion competitors in
virtually any field is at least a wasteful endeavor.
Instead,
a portfolio with diversified asset classes in a long-term
uptrend with annual new cash put into low priced beta-balancing
assets is preferable.
Solid
undervalued assets include silver, the ideal investment
formula for 99% of investors.
Bob
Hoye and the host concur, a lengthy gold bull market
is imminent, full speed ahead! Bob Hoye notes silver
remains in tight demand conditions.
Silver
represents a solid portfolio beta-balancing asset,
especially given that recent 95:1 gold to silver ratio,
and that the natural rate is approximately 15:1.
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Guest
Bios
Bob
Hoye
Institutional
Investors
With
a degree in geophysics and a number of fascinating
summers in mining exploration, one winter in
"the bush" quickly led Bob into the
financial markets. This included experience
on the trading desk and in the research department
of a large investment dealer, which led to institutional
stock and bond sales.
Bob's
review of financial history provided the forecasting
models designed to anticipate significant trend
reversals in the sometimes alarming volatility
typical of the transition from rampant speculation
in tangible assets to fabulous speculation in
financial assets.
In
anticipation of the latter opportunity, a monthly
publication for financial institutions was started
in January 1982.
This
competently covered the stock market, the yield
curve, credit spreads as well as metal and energy
prices.
In
1998 the Institutional Advisors website was
started as a forum for unique and reliable financial
research.
Bill
Murphy, GATA Chairman
Murphy grew up in Glen Ridge,
N.J., and graduated from
the School of Hotel Administration
at Cornell University in
1968. In his senior year
he broke all the Ivy League
single-year pass-receving
records. He then became
a starting wide receiver
for the Boston Patriots
of the American Football
League. He went on to work
for various Wall Street
brokerage firms and specialized
in commodity futures. He
began as a Merrill Lynch
trainee and went on to Shearson
Hayden Stone and Drexel
Burnham. From there he became
affiliated with introducing
brokers and eventually started
his own brokerage on 5th
Avenue in New York. He now
operates an Internet site
for financial commentary,
www.lemetropolecafe.com.
Closer look
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JPL Mars photos...
No color was
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