Don didn't have that much to say on Thursday's call but still seems quite bullish on gold ....

Don Coxe 11.10.11 Conference Call

· Don indicated a frustration with the markets and the change required to become an investor. Now instead of looking at economic outlook and earnings per share, one has to consider the yield on 10 year Italian bonds. This should not be the statistic on which the world is hinged.

· Retail investors have pulled their money out of the stock market as they feel like it is being manipulated.

· Don is finishing up an issue of Basics Points that will come out next week where he will address what must happen before another bull market arrives. The European banking system has to get healed first. Doesn’t think the euro will be around another two years. The big US banks are so tied into the euro zone that they cannot free themselves of this debacle.

· When the euro first came out it was on par with the US dollar. Then it was discounted to around 85 of the dollar. Then during Greenspan it became a power house currency when it went as high as 160 to the dollar which was devastating to their economy.

· What’s happening in the currencies is really interesting. It’s astonishing really that the Euro has not gone down that much given everything going on in Europe. What is the explanation for something so extraordinary? The answer is because the rest of the world lead by Switzerland is printing money to drive down their currency so their economies do better. But in order for the whole European area to become more competitive, the EURO must come down which will be a gigantic battle with the Germans.

· When the Euro does come down which will happen, there will be a significant rise in gold. The only barrier Don sees holding gold back is the attempts to keep the euro strong. Italian bonds are now at 6.08% for one year whereas a month ago it was around 3%. Think about it….how can these compete with the current interest rates in the US? This is what is keeping the euro up.

· Corporate sector has never gotten over what happened to them in 2008…..so they are keeping inventories low, building up cash, foregoing projects that don’t have immediate payback, etc.

· We’re going to have more developments for which none of us have any experience. It’s so hard today for traders. All he can do at this stage is keep a look out for what’s happening and then let folks know. The bull market will come but only after all this other stuff gets washed out of the system.

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