The Sound Money Campaign website (an excellent initiative by the way) just released an interview with Jay Taylor. It is a “must listen” interview as several interesting insights are revealed. Triggered by the seeming propaganda against the metals in the past two weeks, Jay Taylor shares his take on the metals, our money and gold miners.
I think there’s no question there is a huge dislike against gold among the establishment because gold competes with paper money. The current fiat currency system is a way of those who control that system to wrestle away from those who create something (miners, manufacturers, inventors, farmers … people who actually do something).
Interestingly I had Mark Skousen on my own radio show, and he was talking about a group of economists (The American Economic Association). They were asked whether we should return to a gold standard. There was a 100% against doing so. They were all divided on how much debt matters, whether the minimum wage is a problem, … There is an unanimous opinion against gold on the part of the economic establishment. Of course those people have been trained through our establishment and have their degrees from prestigious institutions.
The talk that comes out of the Fed and the establishment (about taking QE away for instance) in part are meant to keep people believing in the integrity of a system that does not have much else going for other than talk. The debasing of the currency is relentless. [...] They need to make people believe it is not going to be a problem. They need to do that in order to keep people believing in the dollar which they create out of nothing. It’s a gigantic con game.
Apart from that we are looking at a great buying opportunity in gold now, although the metal could go lower. It is accumulation time in the metals, as well as in selected mining companies. Jay Taylor likes companies that produce real things because it is real things that will win in the long run. The mining stocks are down between 10% and 25%, so it is an opportunity to begin entering some positions. More than ever, however, people have to be very selective. Jay Taylor looks initially at the producers, streaming companies, and some of the smaller producers that have cash flow.
The really big money will be made with the successful juniors, the ones that find enormous amounts of wealth in the ground. People need to look for companies that are able to raise capital in the markets. “One of my favorite companies is Brazil Resources because of the quality of management, the ability to raise capital, some really great projects, the ability to attract great talent. It is wise to seek companies listed on the TSX with geographically diversified projects.