Tom O'Brien, Editor of the Gold Report, discusses the Gold Market
Tue, 22 May 2012|
Tom O'Brien, Editor of the Gold Report, discusses the Gold Market.
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Tami Luhby, CNN MoneyTami Luhby, CNN Money
out there. All my family is out and Antarctica there in -- hockey players all these Bruins players that you love -- -- where you think they're from either from you figure from Massachusetts. What -- -- the American players on the crossed amber is here now so why. Why did you leave. My dad a transfer okay Kampman you'd still be their -- guys that are not facts you'd go back tomorrow -- if you. The problem is I'm not a good enough occupier he it to be. Saskatchewan. Produces more hockey players per capita than any other place in the world to -- a -- paid attention the past couple weeks. But supposedly the number one hockey player in the world it turns out. He's not that Iraqi player you know he is that it is just that the other Canadian playing against -- is a better player. -- birdie is a better player than Sidney Crosby . When he doing and you look at the game of hockey -- get ready looks at the offensive side of hockey chemicals that yet now it's a two -- game you gotta be of the play defense Sidney Crosby can't play defense he sucks and the defense he's he's he's a wimp. And he doesn't play. That's an uncle Chris Chelios . Give me a belt made him but he running each. Is. Like rich rich this is embarrassing to to stop that knowing that Jack and Roenick now. Wage on the island -- got your -- -- these. Players I sound yet I've actually her -- The hall of famers I mean it the best like Bobby or he's from Canada and -- now he's from Saskatchewan. Wayne Gretzky he's from -- In isolating it like that's your national sport that you didn't see any baseball players made it in the -
Casey Ross, Boston Globe, on PriceWaterHouseCooper's
Casey Ross, Boston Globe, on PriceWaterHouseCooper's
right now are taking a look at the waterfront -- the new real estate option. Then moving to a different officers bank put you know they want to establish -- -- exciting new abandoned building and so. The seaports and interest and opportunity that drawing a lot of companies trying to. Why I think I like the financial district to that what's the big attraction of the seaport area you name it may be a mess it's. Poll. It's cheap and it's that's the main thing is that you know right up there looking around at look at okay -- and I moved to and another office building downtown and I stay put. You know that the currently rate or should I mean he moved to the seaport there's a -
Shawn Kravetz, Esplanade Capital
Shawn Kravetz, Esplanade Capital
been and then. We'd like to buy the whole company and then negotiated transaction . Do you own any shares in the company now. We do we heard the second largest outside shareholder. The family owns roughly 90%. Of this company. DE Shaw. Very very large hedge fund in New York City is the largest outside shareholder and we are number two. Why panel why they're why they hesitating to solitude they must feel that the shares are worth Maurizio I think I can conclude. Well. I don't wanna speak for them but I suspect you're right on the money. They had no idea that and they know there's a lot of value there. And I guess they're confident that someday they will get that we would like to help shareholders get that values sooner rather than later. Because. We thought the assets -- well. You made the statement that you feel the -
What's Up On Wall Street - Andy Cinko, Bloomberg News
What's Up On Wall Street - Andy Cinko, Bloomberg News
we asked a question of the day which had to do with Social Security And collect your Social Security for retirement age or are you going to collect literally. 73%. Of Americans collect their Social Security early in the vast majority of cases I think that's a mistake but people do it for any reasons. When I came up with June and I think is a good idea for us to talk about is you know we're sitting here and and and acting all high and mighty. As it relates to this discussion about Social Security in the back the matter is we have access to tremendous resources on this topic whether the courts are now ski. Who worked for the departments of security for 37 years or whether it's Chris Farrell was a reporter for Bloomberg we have access to a lot of data. What I would like to do is make this information on Social Security Tips to maximizing -- worst Social Security benefits I'd like to make it available to our listening. I think it's they I think it's important. You know people refer to it I think some 97 -- as areas of securities of Ponzi scheme this. I disagree with you respectfully -- disagree with you but you know -- more importantly. Please educate yourself on Social Security Call this phone number it's 508591. 5444. Asked for the guide about Social Security tell the I would pay -- wanna learn more about Social Security Barry seems to know a lot you know why I read a -- I studied this stuff every day it's what I do for a living. 5085915444. Is the number you should call. Call them. Tell -- you're listening to the financial exchange and you want to learn more about how he can maximize your benefits. Out of Social Security I think you'll be glad you made the call I know I was glad when I read the report on Social Security Maybe a more informed consumer. 5085915444. Up next Sean Kravitz he's the president of a hedge fund. That has been trying for
Automatically Generated Transcript (may not be 100% accurate)
-- We're taking your taxes 6868603. Says I smell a huge class action lawsuit coming from Morgan Stanley surroundings FaceBook IPO. I guess it depends on how well they share price goes. Mean I just think their clients are going to be their disappointment and I've -- it because that's against that that's the part. Morgan Stanley had to choose between there. Hundreds of thousands if not millions of clients that they they they Europe it permanent it's like 161000 stock brokers throughout the country right to and each broker has hundreds client. -- that that group of people that you were present rate that should be that your customer base in -- come first and in your other customer base is the Mark Zuckerberg -- the world their FaceBook now right as he had to choose more it's and we had to choose who we represent. Mark Zuckerberg or our clients are millions of clients. It clearly based on what's going on with Facebook's stock price they chose Mark Zuckerberg because I can promise you that FaceBook is contained within. The vast majority of their Morgan Stanley counts especially in debate counts on the -- beat out the more they structures that are in the Tonya. Of for sure and you know like precinct to that you know these people that make these decisions. At Morgan Stanley. Was -- who -- Jamie diamonds. No and I came in on it that -- and at JP more a week or you know shortly Stanley -- a big brokerage house the people at Morgan Stanley making these decisions that's adamant up. Is living in some crazy world. That's not think they had to know -- and really so yeah I I duke. I think now it with the -- the stock is falling in price they had to have known it was coming up to yeah. The speaking of something it's hot. Is the price of gold it's a 1581 announce it's down seven dollars announced today. However -- been as low as under 300 dollars an ounce during the last eleven or twelve years Tom O'Brien from the gold report joins us now Tom good morning and welcome to the show. On Daytona could do it yet. Hey thanks for joining us -- -- one thing that that I've been watching it for the last year Tuesday. Gold historically for the last hundred years has moved in tandem with the price of oil. That isn't happening anymore why why is gold not moving hand in hand with the price of oil today as it has in the past. It seems that the you know oil. You know took up -- -- where we go back you know ten as well while he would attend ten bucks up to one more once -- Gold tip off at 252 to 1960. Right now and our dollar index went 121 about a seven now -- traded -- 8133. So the correlation. Is strictly. US dollar to gold. -- US dollar to oil now what happens Barry is that oil does have a premium and it because of course people are always worried about -- So that premium is in the oil. EDT today is it is isn't it in gold as well although because gold -- -- a year purchase -- many people buy gold because they're worried about the the the -- around the world yet into the World Series -- -- -- Yeah no it is it is definitely a premium and have because of that you know last week we broke the lows so established in December. We bounced off those pretty good but I expect the going to be going back and -- it looks to me that the the gold market itself is going to be -- consolidation for the next three years the lol that is probably somewhere around. You know really thirteen minute thirteen thirteen fifteen and -- high. You know we'll see whether -- going to be 19100 again but it looks to me that the dollars the one at getting the strength which is gonna affect. The gold market and a big way. So you're suggesting that the lol on gold are in the next 36 months will be about thirteen hundred dollars an -- from it and it's currently close to 16100. Why is what it what would cause it to decline that much of price rising interest rates. Just the rising dollar that would -- resist so project a lot the largest user of gold still -- India when India buys gold. Fifty US dollars to buy it and the rupee is so dramatically low right now that they don't have enough. Rupees to buy enough dollars to buying of gold and so. And then -- government and India turned around to put attacks on gold on top of the dividend put Texas 4% of the middle attacks on top that so that demand has gone down dramatically. That that'll do it date yet but what. -- based on what you're looking at now in in the the the collapsed potentially of the Euro. I agree sex sitting Spain's in trouble Ireland's looking for another bailout Portugal on their way out Italy's in trouble me look around and you looking Europe. You look at housing bubble in China IE 875%. Of the real estate market in China is now. Declining in value. Is that type of activity couldn't that cause gold prices to increase pretty dramatically of the eurozone breaks out. The eurozone breaking. My take would be that it that's gonna make gold dropped really know what any -- it it was and it it I understand it comic to order of but what people haven't really understood yet. Is that the dollars -- you know and and believe me you know I've rolled the gold market but the reality is is that if you have dolls have cash. What can do it to Dubai after. And everyone in Europe was units at a dollar -- people in China I mean look at the scandal you know the prime minister Dick should come earlier they don't want -- -- the so so that is the biggest catalyst that's going on right now and of course you know -- you do look the other side of people sit in the end of the world. I don't know gold -- a normal doll I think that making a big mistake. Because I think the -- the biggest run. -- is -- I would -- the biggest front though it is going to be. There's good opportunities inside the equities may be the next three or four years because the price spread is gonna be so dramatic meaning from fourteen to 19100. But battles -- gold -- nineteen and it did you know three or 4000 it started happening I see the dollar though. Going to 89 -- being very powerful. See the dollar gets stronger during the next few years it would about the presidential elections -- wit. How does one candidate affect the price of gold over the other you look at the difference between Barack Obama and Mitt Romney. Is does that play into your forecasting at all as a relates to the long term personal. It doesn't and the reason it doesn't -- is that. -- -- Apollo is to be in any country can't stand goal because what it what it does it there's no doubt is that what gold will do. Is that it. -- -- Huge amounts of money. Getting printed on a continual basis because it it will creep up over the over the course of a time and so any real power structure is the last thing they want. Is the price of gold going to three -- 4000 -- -- then people would say what is wrong why is that happening at some wrong. In the context of what we're doing you know so I would say that the most you know whether it's the federal government whether the Fed whether it's any presidential. Out sprint did they don't they don't and they all are on the other side of gold medal that I want that to happen because -- -- gonna get paid in this soft dolls analysts. Which it wouldn't when you look at the environment and and is as a relates to the the price of gold. How -- somebody unwind their position you know they've they've been buying it up for the last five years ten years they paid 800 announced all 1012100. Announced. -- they just go to like do they just go out and sell their gold ETF. Do you do they liquidate their hard metals lately would they do this stuff. I I would I would be liquidating. On every bounce yes I would. And if they were -- correlation is -- -- -- facilities so far I would be liquidate never bounced and the way the way that I just try to bury goes like this right that they just haven't. You'd get a running goals stats at 330000. Dollars -- you know hundred -- right now he had 158000. -- to 2151000. About a house -- -- 158000. It was 300000 right yeah. And you get cash flow positive and a cap rate of 20%. In dynamic and money. Right -- it. You know actually not on Google and yet that's the knock on gold as an additional cash is no dividends from it right it's purely is that correct place. Absolutely and in this context here when you Schwab -- that asset and you're talking about. You know buying something that. Under these kind of build it gimme a break you know that's not so much in Boston but the other parts of the country that is happening -- you know they cash flow positive. All right we'll Tom thank you very much for joining -- sure appreciate your time. Barry have a great whenever they find they've been with yet. All right that's Tom O'Brien from the gold report joining us today on the financial exchange. Judah got to tie yeah I fully expected to hear bullish reports from Tom and he instead he's -- -- I was shocked get out your old IL says go to thirteen hundred dollars an -- and neither. Political candidate is gonna be very helpful for the personal.
