Jim Puplava interviews James Dines

[Atash Hagmahani]

The financial sense midweek edition with Jim Puplava, interviewing James Dines.

James Dines had a newsletter--probably still does--that made his subscribers a lot of money jumping onto trends that he correctly guessed were strong enough to make a lot of money on. His specialty is something like "the mass psychology of markets". He correctly called the Internet bubble--the "dot bombs" that made a lot of money before tanking (and he got out of them before they did), and the boom in gold. Not sure if he realized that gold mining stocks would underperform the metal itself; I think he's now plugging the idea that they will catch up, though that is not my interest in posting this interview:

http://www.netcastdaily.com/broadcast/fsn2012-0127-1.mp3

[Mike]

James Dines still has his newsletter.  i've never seen it.

He is big on Uranium.

He is big on Rare Earth Metals.

Bob Hoye has offered an insight into, "Why gold stocks?"  According to Hoye, in a post bubble contraction, like this one, 'of the likes we haven't seen since the thirtys, the real price of gold increases.  The real price of gold is the price of gold relative to all other commodities.  Because the real price of gold increases, the cost of mining (which is energy and labor intensive) falls, relative to the price of gold.  So even though the price of gold may be stable, mining it becomes cheaper.  Miners become profitable; they become money making machines.... even if the price of gold does not go up.  Note: the gold stocks must be gold producers.

Notice however, that in an inflationary environment, production costs soar.  So in an inflationary environment it is better to own a gold stock with assets that don't produce!

I don't think any of this is why you (Atash) posted the link.  I'll listen again to try and catch your angle.