Doug Casey Interview

POSTED ON September 12, 2011 BY Tommy Humphreys
CATEGORY Interviews, Legends, Library, Newsletters, Video,

Originally published on TommyHumphreys.com.

It is my pleasure to share this interview with my friend Doug Casey, the legendary author, investment newsletter writer and founder of Casey Research. Doug is about the nicest guy you could meet for a man in the doom and gloom business, and I think business is good. So without further adieu, here he is, the one and only. Watch:

For those of you who can’t sit down for all 30 minutes, I’ve included a few of my favourite sound bytes from the interview.

“There are several thousand so called mining stocks traded here in Vancouver. Most of them have nothing but a hope and a dream. Most of them don’t have a prayer of finding anything. So it’s fraught with danger for the average investor. All I can advise is to educate yourself. You’ve got to start reading books about geology and studying the markets, and then interviewing the guys that run these companies until you get a sense of who is real and who is a flake. That’s what you’ve got to do. Most people don’t do it, they just buy a stock because it’s touted to them by anybody from a friend who knows less than they do to a taxi driver, so of course they lose money.”

“It’s good to remember that the junior mining sector is the most volatile sector on the planet, by far, more volatile than the internet stocks ever where during in the nineties. Volatility is your friend, actually, it gives you the opportunity to sell and buy at radical extremes. Through the 70′s and 80′s the junior resource market moved upwards of 1000 percent as a whole then lost 95% of its’ value and then did the same several times in several cycles, so this is a wonderful opportunity it presents, and I wouldn’t say that it’s necessarily cheap right now, but I would say that the odds of a bubble being created are great, so I think this is a good time to start looking at quality issues.”

“At some point a bubble will be ignited in the precious metals, and it is entirely likely as people panic out of dollars, they are going to go into securities because at least theoretically, stocks represent a claim on real wealth, so you put those two things together, a boom in gold, and possibly, a boom in the stock market – not based on fundamentals, but just based on people wanting to get out of dollars, and you could have a super boom. I wouldn’t doubt that there are going to be some issues between now and if we talked again in 3 years that are going to have gone not just 10 to 1 but 50 to 1 even 100 to 1; it has happened in the past, it will happen again in the future. At the same time a lot of these stocks will blow up and dry away because the only gold they have is printed on the face of their certificate, they don’t have any in the ground.”

“If you want to speculate in something, and people are going to be forced to speculate in the years to come, just to hide from the consequences of the governments’ inflation of the currency, I think that junior mining stocks, for people that know what they’re doing, are one of the best places to be. I think there’s also likely to be a bubble that develops in biotech stocks, for a number of reasons, and I speak as a longtime amateur science buff, I’m friendly to those as well. And I’ll give you a third speculation that I think is worth while, and that’s being short bonds. And that’s a triple play if you’re short bonds at this point which are at all time highs. Interest rates have to go up, way up, which is inverse to the fluctuation of bonds, so thats number one. Number two, the dollar is going to collapse, so that’s also going to destroy bonds. Number 3, you have the default risk, and that premium is going to go up. So if you’re looking for one sure speculation over the next ten years get short long term government bonds. So those three, theres lots of good speculations, theres always a new train leaving the station.”

Special thanks to Cambridge House for sponsoring the interview, and don’t forget to sign up for Doug’s free Conversations with Casey.

Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

Twitter: @tommyhump

tommyhump@gmail.com

Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.