Ross Beaty and Doug Casey – Contrarian Masters

HOUSTON -- It is no accident that a large number of the big names in the resource biz are coming out with a variation of the same message.  That message is simple and elegant.  Buy “stuff” when it gets ridiculously cheap and run counter to the trend. – Then hunker down, hang on to that position with both clinched fists and wait for the pendulum to make its way back the other way.  

Being a contrarian is not easy, but is a path a very few, very smart people have taken to achieve enormous wealth.  
 
Below is yet another of a series of recent appearances by small resource company “greats”  hammering home the idea that the current irrational vacuum of liquidity from the junior miners and explorers is opportunity with a capital “O”.  The no-accident part stems from the fact that the Canadian Venture Exchange Index or CDNX is currently trading at levels first reached in 2002, a decade ago, when gold struggled to touch $350 and silver was well under $5 the ounce.

 
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The current condition of the small resource company market is a contrarian target rich environment, in other words.  We sincerely doubt that even the masters of contrary theory thought such a compelling opportunity was possible with gold above $1,500 and silver more than five times what it was in 2002, but now that it is here, it stimulates and energizes the contrarians among us.   

Hence the large number of uber-contrarians appearing in public now to remind us that it is at times like now when great positions are built – for when the market no longer has a world-class “hate” on for the companies we call The Little Guys.  We have shared a few of those recent appearnces in the VultureInReview section of the blog and plan to continue doing so.  (See VultureInReview link at the top of the page, and of course the GotGoldBog entries along those lines.)   

Enter Ross Beaty and Doug Casey at a recent conference below.  Pay attention to Beaty’s philosophy on when to build a position.  It is the kind of thinking we small resource company Vultures understand.

      

Source for video:  Cambridge House International and Casey Research via YouTube
http://www.youtube.com/watch?feature=player_embedded&v=OXRDWfHq44Y