Doug Casey is a respected author, publisher and professional investor. He has authored newsletters and alert services for investors for over 28 years. These services have evolved into Casey Research and The Casey Report – a subscription based service.
To describe Doug Casey as “worldly” is appropriate. Doug divides his time between Aspen, Colorado; Auckland, New Zealand; and Salta, Argentina. Doug has lived in 10 countries and visited over 175.
Doug literally wrote the book on profiting from periods of economic turmoil: his book Crisis Investing spent multiple weeks as #1 on the New York Times bestseller list and became the best-selling financial book of 1980.
Fast forward to 2012, Doug thinks the current economic crisis is far from over. Recently, he stuck his neck out and predicted an Obama win followed by a deeper economic recession.
Casey classifies himself as a contrarian investor and has been a mainstay in the speculative Canadian junior resource markets for decades. We welcome Doug Casey to our Top Mining Minds series.
What factors will drive the mining markets over the next 12 months?
I expect higher gold prices. I hate saying that with the metal over $1700, after it’s been rising steadily for a decade, because by nature I’m a bottom fisher and a value player. But higher gold prices will be driven by money printing by central banks all over the world, and increasing fear on the part of people with assets.
You must remember that gold (along with silver) is the only financial asset that is not simultaneously someone else’s liability. I’m not so bullish on commodities in general, however. We’re still in the early stages of The Greater Depression, and demand will fall for most commodities – along with the general standard of living.
What should investors be doing right now?
Investors should anticipate more bubbles, similar to those in stocks (in the late 90’s) and real estate (before 2007) caused by this money printing. There will likely be bubbles in both gold, and gold stocks. It will, however, be ever harder to be an investor: someone who allocates capital to create more wealth. Everyone will increasingly be forced to be a speculator: someone who attempts to profit from politically caused distortions in the markets.
What are your top picks and why?
Quality junior explorers will have their day in the sun. Right now, relative to precious metal prices, they’re the cheapest they’ve been for many years. So I’m buying private placements in well-managed companies that have viable proven resources.
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