http://financialsense.com/fsn/BP/200...

JIM: It’s absolutely amazing because we’re going to have a roundtable, Eric, with some of our gold experts. There’s almost a sense that you get –and you’ve seen in a graph of the HUI where you go through these long periods of consolidation – and essentially what’s happening is the gold market is winding up like a coiled spring. And when I did that piece last week called Last Call I really believe that in the next couple of months is going to be your last chance to buy these gold equities – and especially the juniors – at prices that, Eric, you remember how crazy it got between let’s say, 2001 and almost going in to spring of 2004 where you’d wake up one day and a stock would be up 30, 40, 50 percent. You’d wake up the next day and you’d think, okay, I’ll wait for a pull-back and the next day it was up another 30, 40, 50 percent. And that was the period where you saw stocks go from 20 cents to $2; you were getting 10-baggers, 5-baggers. And that’s what I think is up directly ahead of us and like I don’t know how many times I can say this, but you know, when they’re down, when nobody wants them, when they’re incredibly cheap…I mean just think of it this way: Nordstrom’s is having a 40% off sale on gold and silver equities and bullion. What do you think would happen, Eric? They would be waiting around the corner to get inside the store, and that’s the opportunity in my opinion that people have today. [1:00:04]

ERIC KING: I think the main thing is that we don’t know what’s going to trigger this – it could be acquisitions. I’m not sure what’s going to start this domino effect but as we go on and begin to see this really violent move like you’re talking about in the juniors go forward to the upside, we just don’t know. And there may not…nobody is going to ring the bell like you said, Jim. They’ll just start going. They’re on their own timetable and they’ll just start going. I know the smart money has been parking money in these stocks in a big way, participating in offerings. So it’s like as soon as they sell something else, they’re trying to get as much money...Look, if you have an Agnico-Eagle, like last time on the show it was around $700 whatever an ounce of gold in the ground, and then you’re looking at some junior that’s in a good quality area, 30-dollar something in the ground, where’s the value there? I mean like we said, Agnico over time will go a lot higher but things just get ahead of themselves in bull markets, and right now we have extraordinary values in some of these juniors and that will be gone later on. It will be absolute pandemonium in the third and final phase of the bull market if you go from Richard Russell’s view of looking at it where there’s three phases. That mania, that manic portion, there’s not going to be any value, it will just be madness. And again, you have to stick with fundamentals.

I know George Soros was calling this the worst financial crisis since the Great Depression and that’s goes back to that James Turk Fear Index, so we’re finally beginning to have this panic in paper. And you know, he’s talking about the bottom being in the stock market and having a rally but eventually having it roll over and go down to fresh lows – he’s short the US stock market and also the 10 year note. And of course, that’s started to move in his favor since that interview. So I think to a degree we have this unwillingness for people to hold dollars and there’s really not much in terms of suitable alternatives, so that really in the end creates this panic into gold towards the end. I think the Federal Reserve has run out of room in terms of the ability to cut the rates because we’re dealing with such large inflation numbers. So as you look at this going forward, I mean it’s really set up, Jim. Everything is perfectly aligned. If they’re going to have the pull-back like they’re doing, better to get it now, better to get it over with. We’ve got consumer confidence hitting 26 year lows on March 25th when they came out with their report. But really, you have to look at it, the expectation for the next six months which slumped to 47.9 – that’s the lowest since December of 73; right? So you’re talking 35 years ago, the Watergate scandal. I mean we are beginning to see signs obviously of this panic or this fear creep into these paper markets. It will accelerate over time even though it takes rests. Is it over? Was that it? (like some people are saying.) Absolutely not – with derivatives out there, like Warren Buffett says, “created and devised by madmen,” weapons of mass destruction. And the other thing to keep in mind is – and I’ve already talked about that Lawrence Parks interview – and I don’t want to get into that again this time – but that printing money –saying that five times over in Belgium – creating money without limit and how that can just wipe out your savings of a lifetime in the blink of an eye.

The Fed right now is trying to get these emergency measures not seen since the Depression and they want to have the ability to borrow more money than it needs to fund the government and leave the proceeds on deposit, issuing the debt under the Fed’s name rather than the Treasury’s interestingly enough, and ask Congress for the immediate authority to pay interest on commercial bank reserves or do whatever it is that they have to do. I think it actually was set up for 2011; they want to accelerate it to today because of these crises that we’re seeing. The Fed like any central bank can create or print unlimited amounts of money. And in that environment, Jim, and I’ve said this for so many years and so have you, I hope people have been protecting themselves by being in your funds, buying physical gold and silver – but position yourself and be a strong hand. Don’t buy a stock like this guy and then be in a panic when it dips down. You’re missing the whole point of this. You’ve got to believe in this bull market! If you don’t believe in this bull market, if you don’t believe then get out, step aside because the strong hands aren’t selling. The strong hands are in this for the long run and they’re accumulating right now because they know what’s in front of us, Jim. They know the explosion that’s going to take place. You had gold up 25 ½-fold in the 70s, silver was up 38-fold. I mean where are we on this stuff right now. If we have a pull-back in gold, I mean we barely tripled. There is a long way to go in this bull market. [64:40]

JIM: Well, I just hope this time, because I do believe this is the last call, that people will listen if they’re thinking of getting in the market, don’t do it at once, put in this month, put some in next month, put some in June. All I can say is by the time we get to December of this year, you’re going to be awfully glad you did.