Doug Casey: This One of The Great Market Bottoms of All Time — 4/3/14
Palisade Radio recently returned from a trip to visit the emerging wine and polo community of La Estancia de Cafayate in northern Argentina. Collin Kettell met with several highly respected speculators and investors at the event including Doug Casey, John Mauldin, and David Galland. The La Estancia Interview Series begins this week with legendary speculator, Doug Casey…
Doug believes that the current situation in the junior mining sector is a speculator’s dream come true like he outlined many years ago in his best selling book — Crisis Investing. Doug says that the junior mining sector is the most volatile sector in the entire investment world, where these stocks will go up 1000% as a group, and then drop 95% together. If you like to buy things when they are cheap, then now is the time to do it. This is one of the great bear market bottoms of all times in these stocks.
At the last bear market bottom in 2001, gold was selling for around $260 an ounce. Doug points out, that at that price, in real terms, gold was cheaper than it was in 1971 at $35 an ounce. At $1,300, Doug believes that gold is still a very good speculation and he fully expects to see gold reach $5,000 an ounce in this cycle.
What does this mean for the junior mining stocks? Doug points to an old saying in the mining business — when the wind blows, even the turkeys fly. As the public gets into the mining stocks, (which they are totally out of at this point), these small market cap companies will move up very quickly. In order to maximize gains in this sector, Doug suggests looking at a strategy of warrant exposure.
Aside from gold, Doug sees several other sectors that speculators can look at to make money over the coming years. He sees bubbles in biotech, the government bond market, uranium, and the Russian stock market to name just a few.
Finally, Doug touches on his concerns about the militarization of the police state and he gives us a sneak peek into his latest work — a series of seven novels.
Doug Casey is an American born libertarian economics and advocate of the free market. He is a bestselling financial author, international investor, entrepreneur, and the founder and chairman of Casey Research, a provider of subscription financial analysis about specific market verticals including natural resources/metals/mining, energy, commodities, and technology. Since 1979 he has written or co-written the monthly metals-and-mining-focused investment newsletter The International Speculator. He also contributes to other newsletters including The Casey Report, a geopolitically-oriented publication.