An In-depth Interview with Frank Giustra
Mining magnate and film mogul Frank Giustra gives an in-depth interview to Cambridge House’ Tommy Humphries in the video below.
Topics include gold, the Fed, structural problems in the U.S. political system, inflation, deflation, crisis investing, Europe, banks, attitudes of the people, key words in the public discourse, debt in the U.S., quantitative easing, moral hazard, important changes to come, political conflict of interest, resource stocks, commodity prices, China, market confidence, European money printing, junior exploration companies in particular and a lot more.
In the long run the people who get destroyed by the broken system we live under are the people who have savings, Giustra says. Since the system is inherently un-fixable, we might as well go along for the ride and profit on the inevitable inflation ahead.
Mr. Giustra says in the future the world is almost certainly heading for more money printing and more inflation. Avoiding cash, bonds and fixed income securities and focusing on gold and stocks is how one positions to benefit from that scenario. Currency debasement is the only choice left to the central planners and that is fertile ground for gold.
Not until everyone wants to own gold will it be time to sell it.
The resource market is in the worst state Giustra has ever seen it in 34 years of investing and trading stocks. “I think it will turn around. What people might be losing sight of is that people usually connect irrational and stupid market behavior with peaks of markets, but it takes place at the bottom of markets too. And, it’s just as bad. When you think about it fear is a much greater, stronger emotion than greed. The sense of hopelessness that people have about the resource sector right now, is something that you know, if you are logical about it, it will change – it’s not going to stay like this forever. So I think you have to sometimes – if you lose complete faith, you have to give your head a shake, … you realize that this is really, really bad, but guess what – it will change. And the other thing you have to understand is that there is a lot of cash out there in the world – a lot of cash sitting on the sidelines – trillions of dollars of cash and it eventually has to go somewhere and it will go somewhere, it can’t stay in cash forever.” Frank Giustra.
Giustra’s criteria for picking juniors are simple. Great assets, great management, grossly undervalued and most importantly able to weather this storm without heavy dilution. “I’ve done my homework and chosen my companies and I’ve invested a significant amount in a number of these companies. … If I were an investor out there I would really start to think about the fact that this (bear market) will change. … Pick right and sit tight,” Frank said, “but you might have to have a lot of patience.”
Spend the better part of an hour with a very successful investor and deep thinker in the video below. We have a kinship with Mr. Giustra in the form of a particular book he mentions toward the end of the discussion.* For those who have not yet had the pleasure of reading it, we do indeed highly recommend making a note of it and ordering either the book itself or the book on tape version (for those with a reading aversion, but a hunger to hear great thoughts). We also highly recommend giving the book, as an important life-changing event to young people, especially those near the end of their collegiate experience.
Source: Cambridge House via YouTube
http://www.youtube.com/watch?feature=player_embedded&v=9o30gNfPq_k
Thanks to Joe Martin at Cambridge House for the link. Our complements to Tommy for a worthwhile interview. We want to see more of these, Mr. Humphreys.
*The book we are referring to is the first of the two books mentioned although both books are worthwhile.
