Get more from Doug at: CaseyResearch.com
Doug's Upcoming Book 'Speculator' coming September 27
TOPICS IN THIS INTERVIEW:
01:05 Doug's Take on the Gold Market Right Now: Very Bullish
02:10 How to Profit Big According to Doug: Mania Coming
04:00 What Companies are Doug's favorite in this market
05:30 Brazil Resources Increased Gold Reserves Nearly 100%
06:45 BRI could go to $60 by the time the bull run is ending
08:05 2016 Election Predictions: Doug on Trump
10:40 Doug's Upcoming Book 'Speculator':
(00:05) Daniel: Greetings, and thank you for joining us at Future Money Trends. I am very pleased to bring to you probably the best person to talk to right now. We’ve had a raging gold bull market in 2016. We’ve had a gut-wrenching correction of the last three weeks. And we’re talking to the one guy… I mean, if you talk to any of the experts, you go to any conference, this is the guy you want to talk to when you’re looking to invest in small junior resource gold stocks – which is what we have been doing lately. Our guest today is Doug Casey, a legendary speculator in the market and founder of Casey Research. Doug, thanks for joining us.
(00:46) Doug: Well, it’s a pleasure to be here, although in my case, at the moment I’m in Bermuda, but that doesn’t have to slow us down a bit.
(00:55) Daniel: No, you’re coming out just fine. So, Doug, you know, you’ve been in this sector for 40 years. You’ve made yourself and many other people fortunes. Where do you think the gold market is right now, in its current state, the precious metals stocks, as well, and where do you think we’re headed?
(01:14) Doug: Well, the bottom came in December, January of this year, and it was the bottom of a bear market that started at the previous peak in 2011. So I think we have a long way to go. I’m very bullish at this point, and I’m not at all concerned about retrenchment, as we’ve seen in the last few weeks. This is normal bull market stuff. Nothing goes straight up or straight down, and I think that this bull market is likely to climax at several thousands of dollars per ounce. So I’m very bullish.
(01:57) Daniel: Which would lead me to “what are you doing personally right now?” We do have a pullback of the last few weeks. Are you using this as an opportunity to increase your positions? What would be your recommendation to people if they were just like “hey Doug, looking over your shoulder. What are you doing right now?”
(02:16) Doug: Well, first of all, I’m being very selective, but when you’re dealing with junior resource stocks, that’s always critical. There are probably a couple thousand stocks in the world that claim to be gold mining companies or gold exploration companies, and most of them are not working very much. In fact, most of them have no value at all. So I’m very selective about the stocks that I pick, but I’m consistently buying into deals that I like. At this point, I think that the potential is here for a climactic runaway mania in junior gold stocks. In all the time I’ve been in this market, which is, say, since the early 1970s, these junior stocks have consistently, as a group, gone up 1,000%. That’s an unbelievable number, but they’ve done that on the upside, and then they lose 95% on the downside, and the cycle starts again. I think that this coming bull market we’re in the early stages of is going to be the biggest of them all, because world economic situation is much more serious now than it’s ever been in the past. So there’s going to be a panic into gold, and it’s going to flow over into these little gold stocks.
(03:43) Daniel: Do you have any favorites that you can mention for us?
(03:47) Doug: Well, I hate to mention specific names without backing it up, without a long report, because there are lots of people that are touting these things, and people can get into a lot of trouble buying things without really knowing what they’re doing. One of the stocks, though, that I feel so good about that I’ll mention the name, because I think it’s quite cheap, is Brazil Resources. I think the last time we talked, we probably discussed that. This is one of my favorite stocks because of the guy that runs it, Amir Adnani. At this point, I’ve gotta mention that out of the 8 factors that I always use as a rule of thumb when looking at companies, I call them the 8 Ps… the first on the list, and by far the most important – more important than all the others put together – is people. Good people can take nothing and turn it into a billion-dollar company, and bad people can take a billion-dollar company and run it into the ground. So, Amir is one of my very favorite people in the mining sector, and Brazil Resources is his company. So that’s number one. Second thing on my list is property, and the company is just astounding, what they’ve done in recent years. They now have 18 million ounces of gold resources – and that’s 43-101 certified resources. So that’s one stock you can buy; there are others – I can give you a list of 20.
(05:34) Daniel: Well, Doug, you’ve mentioned Brazil Resources to us before, and they did have a significant event yesterday with news, you know, where they did go from 10 million to 18 million ounces of gold, as you said, 43-101. I noticed that several of the institutional analysts have updated their price targets by 100%. One of them literally has now a $6 per share price target on the stock that’s trading for about… just under $3 Canadian. What do you think of these price targets on Brazil Resources?
(06:17) Doug: Well, it’s very hard to analyze these stocks using the standard parameters for analysis. This is why people like Warren Buffet don’t get involved in these resource stocks. The public is not involved in this sector at all yet. Sure, the people that’ve been around the block in the past that are familiar with gold and gold stocks, they’re in it. But we’re just a tiny, tiny little fraction of the market, and one of the reasons why I’m in it, and I think for a quality junior, $6…who knows, maybe it’ll be $60 per share by the time this market’s over – or more.
(07:03) Daniel: Did you say $60?
(07:06) Doug: Well, I hate to pick a number out of the air… this can happen to so many of these junior resource stocks, because as I said earlier, historically, when the junior resource market waves, it typically goes up as a group, stocks go up 10-to-1, and individual stocks go up 50x or 100x, and I know this is going to sound incredible, but I have personally owned stocks that have gone 1,000x. For instance, a Robert Friedland stock, in the past, Diamond Fields Resources. From the time I first bought into it, it was a 1,000-to-1 shot. Now, that only happens a couple times in a lifetime, but it does happen in this market. So if I’m right about the magnitude of what’s coming up in gold, people buying it from fear, from greed, and right now, I’m just buying it for prudence, these stocks can have the best run they’ve ever had.
(08:06) Daniel: Doug, last question. It was about a year ago, I was sitting at dinner with you and Marin Katusa in New Orleans… you guys made a friendly bet. Marin is convinced that the election is rigged in the U.S. and Clinton is absolutely inevitable. You were thrilled with the idea of the entertainment of a Trump presidency, and you thought that he had a good chance of winning. What are your thoughts on that bet right now?
(08:32) Doug: I still think that Trump is going to win, because the average person is very, very unhappy with the way things are going, and I think now, as we speak, we’re leaving the great eye of the financial hurricane that started in 2007 and we’re going into its trailing edge. It’s going to be much worse, and much longer-lasting, and much different, and that’s going to take gold a lot higher. We’re going to see currency crises, we’re going to see economic collapses, big unemployment, a lot of problems. So in a way, I pity the person that actually wins the election, because they’re going to have to confront all of this. That said, I think Trump will do a better job than Hillary, because Hillary is like a charter member of the deep state that’s in back of all these problems that we’re confronting now. At least Trump will overturn some apple carts in Washington, D.C. But it really doesn’t matter which one of them wins, because the economy and the government have a life of their own at this point, and the only way that you can defend yourself from it is by buying gold. And I’ve got to say, in the chaotic market environment that we’re going to be facing in the years to come, everybody is going to have to become a speculator, and I expect to be quite at home with these junior gold stocks, because they’re an ideal speculative vehicle.
(10:08) Daniel: Doug, did you see the recent article that the Swiss National Bank and the Norwegian Central Bank are actually buying precious metal mining stocks?
(10:19) Doug: Actually buying precious metal mining stocks, not gold itself? Well, of course, central banks have no business being involved in the stock or bond markets, but it’s amazing if they’re actually doing that. No, I hadn’t heard that, but they’re capable of absolutely anything, of course, so… no, these stocks are going to catch fire.
(10:42) Daniel: Doug, last we spoke, you told us you had some novels coming out. If you can, give us an update on any new books you have coming out.
(10:52) Doug: Well, yeah, Daniel. The new book is called “Speculator,” which is very apropos what we’re talking about, and it’s a novel about the junior resource business. I covered some other things, like the Bush war and Africa, and so forth, but I think this is an ideal book for people that want to learn something about the gold exploration and mining business, and economics and so forth, but would like to do it in the form of a page-turning novel. So I’d like to urge everybody to pick up a copy, and they’ll be glad they did. “Speculator.” You can get it on Amazon.
(11:28) Daniel: Very exciting. Thank you so much for your time, Doug. Doug Casey, of Casey Research.