Comments on: Peter Schiff’s Gold and Agriculture Teaser Picks

By: jimbo

jimbo — Sat, 04 Jul 2009 12:21:08 +0000

I enjoy my Sat. reads here as I catch up on the week. Really enjoyed this one as Schiff & Gartman are two folks I read regularly.
I think Schiff’s basic comments do point in the right direction (USD devaluations,etc.) but his timing of stock buying sucks & is a bit extreme.
Gartmans dry humour is almost as bad as mine, but I find his timeline focus is a bit too short.
It gives a good balanced perspective of polar opposites to see what the real picture might be.

Keep the ‘ol thinkolator goin!
Thx

By: al

al — Thu, 02 Jul 2009 22:18:56 +0000

You are correct, that is the right “logic”, except you’ve conveniently excluded the invovled risk. The premise is that the price of gold increase, that is how the leverage on the price of gold works for gold stocks when all things being equal. However, the leverage works both ways, if the price of gold drops to $750 instead than your cash-flow drops to zero. Yet, if the assumption is that the price of gold will increase than yes, the leverage works great (again, assuming all else being equal). This is the correct logic, but is only one part of the whole analysis.

By: StockGumshoe

StockGumshoe — Thu, 02 Jul 2009 20:12:15 +0000

Just FYI as a followup, in his radio show Schiff mentioned the fact that someone on the internet was critical of his not disclosing the name of the stocks in his newsletter (I don’t know if he was referring to me or not, though it seems likely), and he said that the reason he doesn’t disclose names is that he’s not allowed to recommend stocks to a broad audience since he’s a broker, so he tries to get people to talk to the brokers so they can get an idea of whether or not the stock is appropriate for them.

I don’t know what the regulations are that Schiff lives under as a licensed broker, of course — I know many brokerages have research teams that routinely analyze stocks and recommend them, but I don’t know specifically what his rules or policies are, so I’ll take him at his word. Of course, if you think you’re unlikely to get a sales pitch when you call, I’d say the odds are against you. Not that there’s anything wrong with that, that’s how he makes a living — and you can argue, of course, that he provides enough clues in the writeups and descriptions that anyone who really wanted to could figure out the stocks, anyway.

And of course, the fact that he felt the need to defend himself is another example of his almost pathological need to respond to every critic, even a quiet lil’ sleuth who’s just sitting in the garret here, working his fingers to the bone for the good people of Gumshoe Nation … I do like listening to Schiff on occasion, but the amount of time he wastes responding to “the critics” is a little silly, he even vented about Dennis Gartman’s insult for a while — hasn’t he ever heard that there’s no such thing as bad publicity?

By: Investment In Agriculture

Investment In Agriculture — Thu, 02 Jul 2009 07:30:16 +0000

Really nice article, I like it.

Thanks for the nice information.

By: Glenn

Glenn — Thu, 02 Jul 2009 05:11:16 +0000

IB also do not charge any fees when options are exercised or assigned a huge saving when doing spreads etc. You can also buy stock by buying in money options brokerage free; except for option brokerage. This method $1/100 shares US or $3/1000 shares in Australia and usually below market price.