Big Picture – The Western World is Sleeping

Eric Dubin, from The News Doctors and Dave Kranzler of Investment Research Dynamics, are two of the best commentators around. In a relaxed atmosphere we begin the conversation discussing the latest global ponzi scheme coming out of South Africa, the Rand Gold Bond. According to Eric Dubin this is similar to the GLD or SLV ponzi schemes but the target market are people on a fixed income with a promise of exposure to gold. While Dave Kranzler explains there is nothing in the sales brochure or terms of the agreement that says you the “bond” is tied to allocated gold in your name. Oh yeah, you have to fly to the Rand Refinery to pick up your Krugerrands in the event the paper-ponzi scheme actually matures. Good luck with that plan.

We then take a look at the gold and silver market. Eric and Dave break it down for the near term and the long term. Towards the end when China, Russia and India are brought into the conversation I ask a very simple question–”What does China, Russia and India acquiring gold and silver have to do with my stack and why is it important?” For anyone, but especially the new listener, this is crucial information.

Eric speaking about Chinese demand and why the Asia markets are so robust. “If you look at it in the context of a five year window, the demand that exist in China right now, is still at a level that exceeds annual mine supply output for gold.

This big picture shift…China, Russia, other nations that are acquiring for fifty year time frames, and the transition in the monetary system, really don’t care much about a $30 move in gold and a $2 slide in silver”.

Dave has a slightly different take on what is happening with the gold market right now. “I don’t agree, with the narrative, that, technically, the market looks bad. If you look at a, I’m looking at a four year chart of the continuos gold futures, it shows a definitive bottom a year ago in June. It’s in a nice up-trend, where it’s kinda hitting higher-lows. We know there’s intervention involved here. Since the beginning of this year, that up-trend has actually started to turn up a little bit, the slope of it has gotten a little bit sharper… From a technical stand point, I think gold’s in really good shape.

We’re probably gonna stay down in this range under $2,000, but I think at some point, and I actually have some reasons to believe that we’re getting closer to that point. At some point I think you’re gonna see China and Russia sorta force the market higher in order to bring out more physical gold. There are people who will buckle down here, they can take some profits on it.”