sorry but the frog had her eye operated on so the frog eyes have not seen clearly to type up many messages. The transcript of the latest Coxe call recently came out and below are excerpts that I thought you might find interesting....no typing involved....just copy and paste.

Excerpts from Transcript from 2/24/12 Coxe Institutional Call

"The miners make ground…

I gave you three charts — gold, silver and copper, and the gold and silver

are in there because they are having tremendous performance so far this

year, and for the first time in a long time, this week we saw the gold mining

stocks outperforming the bullion.

A great Bloomberg story this week by their mining reporter, quoting Aaron

Regent (President and CEO Barrick Gold) about the flex point coming where

the stocks which are so incredibly cheap relative to the bullion, are about to

outperform.

Snubbing the source…

That is my view, and it will require more dreams (I guess) from investors,

who have found that just buying the bullion was a convenient thing, and

particularly for the hedge funds, because of the fact that they could always

get a bid if they were going to sell the bullion, whereas they couldn’t rely

on this if they decided to scale back their gold with the stocks, because the

bullion there’s always a bid.

That factor shows you (I believe) that hedge funds have been a big, big

driver (particularly Paulson and friends) in terms of the speculative move in

gold, but the real reason why gold and silver are moving is because of this

dramatic change in the fundamentals.

All aboard!

Last year, there was only one of the three major central banks which

was in all-out monetary creation, which was the Fed, so as soon as the

Fed indicated that QE2 was over, then having had a fabulous run-up, the

precious metals stocks rolled over.

But we’ve added two players, so that all three of the major Industrial World

central banks are in monetary expansion because the longtime holdout,

the Bank of Japan, has finally capitulated because they could see that the

Japanese economy, which has been brutalized as a result of the nuclear

disaster, that their industrial base was getting killed by the powerful yen, so

what we are seeing is that it’s unanimous.

Presses in overdrive…

If you want to take one fundamental for gold and then the tagalong, silver,

it’s the growth and expansion of paper money relative to the supply of

bullion in the world, and it’s based sort of on the article of faith that if

money supply is growing far faster than GDP, eventually it will translate

into inflation.

Stimulating markets…

But this is translated into rush of assets of all kinds, with stock markets

around the world soaring at a time there’s been considerable weakening

of most economies — the US economy has been the stronger one because

of the majestic scale of stimulus in the US, both from its $1.2 trillion deficit

plus the Fed, so therefore the stimulus in the US is greater than the stimulus

anywhere else, so we would expect the US stock market to outperform.

Foot off the brakes…

China gave the world the greatest amount of stimulus after the crash, and

they’ve been gradually pulling that out, and they’ve been doing it primarily

by increasing reserves requirements within their system, and now they’re

starting to cut those, so there’s a sense that the Chinese feel that they have

done their part now and that they don’t want their economy to get down to a

6 or 7% growth rate, which would cause major social problems for them.

When you add all this together, what you’ve got is all this paper being

created and it’s very difficult to expand the supplies of precious metals —

there are no great constraints on them.

Limitless…We did not include iron ore.

The iron ore story is sharply different that the others. In part I must admit

it goes back to my experience as a teenager playing with Canadian penny

stocks, and I got to know a veteran geologist and prospector who said “Iron

ore deposits are like belly-buttons; everybody has one.”

This was at a time when they were developing the big Wabush Mines and

Quebec had come on and they were learning to concentrate in Mesabi to

save that range, so the speculative thing for iron ore deposits such as for

the Belcher Islands in James Bay, that turned out to be speculation where

everybody lost.

What’s happened in this cycle has been Australia and Brazil becoming

gigantic suppliers, and an oligopoly has formed. China did their best to

break up the BHP — Rio Tinto relationship because they were in a position

of being total price takers as their steel industry was expanding.

Bring it on…

The big news out of the African Conference (which was a gigantic

attendance) was that there are four countries in West Africa with massive

iron ore deposits and they will be developed with Chinese capital and

support, sometime in this decade.

On the edge of the next wave…

As gold recovered back from its low of $1600 and has moved up to $1780

and silver with its huge move, this is going to mean that there will be lots

of enthusiasm, lots of money to be made and of course there will be some

disappointments as some of these prospects don’t come through, but it

means the next phase in the metals boom is beginning.

We’ve come through the great crash of 2008 and we may be coming through

the second great crash (financial crash as it were) which was averted in the

Eurozone, and as you’ll recall in the last issue of Basic Points we changed

out bearish stance to a moderately bullish stance, on the basis that the sheer

amount of liquidity being created will be enough to do the job and that we

are not going to go into another kind of recession such as we had in 2008,

no matter what happens to Greece because the Greek story is still in total

terms, a small story. Anyway, we have a situation where we’ll probably be able to muddle

through and the overall global forces I don’t think are going to mean that the

failures there — Portugal is the next on the danger list, but the Portuguese

are much more restrained — they are prepared to go through cutbacks.

Battle cry…

Of course, the big thing that could go wrong is what happens if there’s a

war between Israel and Iran? This is kind of unique because this is the most

telegraphed war since World War II and in World War II, the pacifists in

Western Europe refused to believe that Hitler would be damned enough to

actually invade Western Europe with the consequences it would produce,

so they didn’t prepare for war, and Churchill was pushed into the backest

benches as being the one within the Tory party who said, “They are going to

do this and we’ve got to prepare”, so that led to that horrible war.

This time we know that the Israelis have been preparing for this one for a

long time, and they are pressuring the US and the Europeans to do enough

to stop the Iranian progress towards building the bomb, before it’s too late.

Out of the ordinary…

The result is that even though the global economy is weak, we’ve got West

Texas at $108 and we’ve got Brent at $124, so this is already a factor that’s

going to slow down growth within the Industrial World, and if a war breaks

out, and what you hear again is from various experts of all kinds, telling

you what can happen — everybody agrees that the first thing would be the

shutting down the Strait of Hormuz with horrendous consequences.

This is something that — ordinarily as investors you take the view that if

something has been talked about for months and doesn’t happen, you reach

the stage where you say, “It’s not going to happen”, but since in this case it

is existential for Israel that if once Ahmadinejad had the bomb, (given hisviews, and that he’s backed up by the Ayatollah) that Israel does believe that they will not be able (in the long term) to survive, so one way or another it’s likely that something big is going to happen.

By the way the two things that increases the likelihood — one is the civil

war in Syria, which means that the Iranians cannot (using the Hezbollah)

use Syria as a point for invading Israel on the ground, and the other thing is

it’s an American election year. I am not going to make any predictions in this, I am simply explaining that ordinarily if you get this kind of move in oil prices it’s a sign that the global

economy is stronger than the economists say it is — that’s not the signal this time.

Let’s eat…

Finally we have the bit of good news for the world this time, which is that

the food crisis of last year that was building has been averted, and with

the USDA report this week in Washington with pretty low prices predicted

for the key grains, that the FAO is now saying that the food crisis has been averted.

Hunger All systems are go…

What it means is there’s a terrific number of acres — we are going to have

more acres under cultivation in the United States this year, and the farmers,

with corn above $6 and also wheat and soybeans at $12.75, the returns

for putting the inputs in on all those acres will be such that they will be

buying the inputs, so we believe that the likelihood with the cutbacks that

have already occurred in potash production will be such that we will have

good prices and good profits for the suppliers, so the crops will get done

and there will be enough food in the world, but it will be profitable for all

concerned — input suppliers, farmers and for people at large, so I look on it

as a good news story."