San Francisco Hard Assets Conference — Day 2

Monday marked the second day of the hard assets conference and it was even better than Day 1. The highlight of the day was definitely the closing Expert Panel Keynote, “Bulls vs. Bears”, which I recorded for your listening pleasure and will share with you at the bottom of this note.

After two full days of hearing keynotes and individual company presentations and expert views, I walked away with the following key takeaways:

  • Mining companies, both large producers and smaller juniors are now “reasonably” priced. Not necessarily “bargain-basement” priced, but certainly “reasonable”. It is definitely still possible to land a “10-bagger” but you need to remember that 90%+ of the juniors will be a zero.
  • Many very smart people are seriously preparing for social unrest and getting out of dodge. (This makes me feel slightly like less of a freak as Kung Fu Guy and I purchased a homesite at La Estancia de Cafayate in Argentina earlier this year). Rick Rule, for example, already has a second passport, a foreign pad, and multiple foreign bank accounts, as do many of the other experts and investors I spoke with, and all were asking questions about it. If you are concerned at all about this I recommend subscribing to SovereignMan (I’m unaffiliated, although I’m a member myself) as they have the best information I’ve found on internationalization. They have a free informative newsletter and a more comprehensive “premium” membership site.
  • I heard over and over again the frustration of people with government and politicians; most people believe that politicians and our government are hopelessly corrupt and are extremely angry that they have corrupted capitalism itself.
  • More on the corruption of capitalism…most investors at the conference absolutely sympathize with the thrust of the Occupy Wall Street crowd being against corruption on the part of big banks and government (there is some dispute over whom is more corrupt…the big banks or the government), but are worried that this core message (anti-corruption) is getting lost and is turning into something much more sinister—anti-capitalism.
  • Most if not all of this crowd (and I) are free-market capitalists who believe in the original founding of America on the freedom of the individual; on self-reliance; “the pursuit of happiness and prosperity”; etc. Everyone is worried that this message is getting lost in the Occupy Wall Street movement of whom some advocate for socialism or even communism as a “better” form of government. Everyone I spoke with found this very scary.
  • There was much discussion around “what could happen” if the protests turn more violent, and fear around “be careful what you wish for”… often you get worse than what you asked (for example, remember the French Revolution…afterwards instead of a happier, more peaceful government they got Robespierre’s “Reign of Terror” and Napoleon…)
  • All agree that there are some major black swan events looming on horizon (Europe, China, Oil, Africa, US, more….)
  • All agree that the dollar will lose its reserve currency status within the next decade
  • But all were quick to point out the difference between “inevitable” and “imminent”…just because something is “inevitable” doesn’t mean it is “imminent”

I’m sure I have more to share with you, and will report on the Accredited Investor’s Rare Earth Day for you tomorrow, but I want to get you this audio now! It’s a great summary of the event, and is quite thought-provoking…pay attention to around 25 minutes in when the old members “welcome” Paul van Eeden to the panel and discuss the future of gold…it’s definitely worth a listen!

Without further ado, here it is:

Bulls vs. Bears Expert Keynote Panel

Rick Rule, Founder – Global Resource Investments, Inc., a member of the Sprott Group of Companies

James Dines, Editor – The Dines Letter
Paul van Eeden, President – Cranberry Capital Inc.
Adrian Day, President – Adrian Day Asset Management

Audio mp3 link:

San Francisco Hard Assets Day 2 Expert Panel Discussion

Enjoy, it starts about 1 minute in, and please let me know what you think in your comments on the blog! Who is right about gold? Paul, or the other gentlemen?

To your financial success,

—Kung Fu Girl