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NBR Nov 7/03 - Market Monitor: James Dines

Link*: http://www.nightlybusiness.org/transcript/2003/transcript110703.html
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Streaming Video: http://www.nightlybusiness.org/videoc.html (available til next Friday)

11/07/03: "Market Monitor"- James Dines, Editor, "The Dines Letter"

PAUL KANGAS: My guest "Market Monitor" this week is James Dines, editor and publisher of the popular "Dines Letter," based in Belvedere, California. Welcome back to NIGHTLY BUSINESS REPORT, Jim.

JAMES DINES, EDITOR, "THE DINES LETTER": Good, Paul. How are you doing?

KANGAS: Just fine, thank you. In your last three visits with us, going back 18 months, you have been strongly recommending the gold stocks and they have been stellar performers. More recently, the stock market in general, which you have maintained is in a long-term bear trend, has been making big gains. Is it no longer a secular bear market?

DINES: We`re still in a short-term buy signal but I think it`s a long-term bear market. And the trigger for the break will come with the next terrorist events and boy, it`s going to happen. The crazies are held back only by their weaponry and that will improve over time. But one day it`ll like 9/11, the market will cave in and the golds will go up on that day, as they did on 9/11.

KANGAS: As well as your gold portfolio has performed, it lacks the safety of diversification, does it not?

DINES: People use my letter to - let`s say if they want to put a portion of their portfolio in gold, they use my letter to run that part of it. But you can use as much gold as you want in your portfolio. I just think that`s the surest bull market that I have - that I see right now.

KANGAS: Well, you made a number of recommendations, about 10 or 12, but let`s have a look at about half of them from your last visit with us on May 9.

DINES: OK.

KANGAS: The first one we`ll put up on the board here. You recommended Newmont Mining (NEM), which is way up from 28 to 43 almost, Placer Dome (PDG) is up over 50 percent. Those were two - let`s have a couple more. Anglogold (AU) and Meridian (MDG) way up from where they were hack back in May...

DINES: These are hefty subscribers.

KANGAS: And Ashanti (ASL). But listen. Apex Silver (SIL) is down a little less than a dollar. What`s with that?

DINES: I missed one. Well, God gave dogs fleas to remind them they`re dogs, you know.

KANGAS: You still like Apex?

DINES: I do. It`s a good play on silver and zinc.

KANGAS: All right. What would have to happen to turn you bearish on gold?

DINES: Well, for the U.S. government to balance its budget for one, to have a serious monetary system where they don`t just print all the paper they want. I`ve been a pioneer crusading for an honest currency for a long time, and we don`t have one. And you need to defend yourself against that by having some gold in your portfolio in case the dollar caves in, which has already begun.

KANGAS: So you believe that gold and silver, for that matter, are both in long-term bull markets?

DINES: Correct. And in fact the "Dines Wolf Pack" series says that silver and gold also move with platinum and palladium, that`s the "Dines Wolf Pack" theory.

KANGAS: How about some new recommendations, Jim?

DINES: Well, the first one is North American Palladium (PAL), is reviving again. Platinum is so far above palladium in price that the automotive companies must right now, it`s not in the papers yet, be considering switching their automotive catalytic converters from platinum back to palladium and that will send the price up much higher. Plus, this - PAL is probably - no, it is the only independent palladium mine in the entire Western hemisphere. They`re very - it`s a very rare deposit and it`s in an uptrend.

KANGAS: All right. Do we have another recommendation?

DINES: Yes, I also like Imax (IMAX) because they have these big theaters that are going to be spreading all over the world. They introduced "The Matrix."

KANGAS: OK. Another one?

DINES: Another one is Saffron. I`ve been very bullish on India for years, and this is a nice spread for an ordinary investor who can`t follow the industry.

KANGAS: You have a lot of Indian investments, I understand?

DINES: Yes, they do. They`re Indian stocks, and it`s a great way to do it. And all of these stocks are in uptrends.

KANGAS: And do you own them all? Let`s have - you have one more, I believe, don`t you?

DINES: Oh absolutely. I own them all. I have...

KANGAS: You have one more that you were going to recommend?

DINES: Yes, Barrick (ABX) is one of the gold blue chips that has not yet moved along with Placer Dome. I also want to mention two huge new deposits just now discovered, it hasn`t been in "The Wall Street Journal" yet, and that`s one in Eritrea and there is one in Mongolia. The Mongolia one, you`ve got into recommended Ivanhoe Mines at 3 1/4. It`s now 12, it has quadrupled. I also like Minco, MMM in Toronto. And that is the area of the market that`s on fire right now.

KANGAS: OK. All right. Now, you own all of these you say?

DINES: I do. And I also have one final comment, if you have time for it.

KANGAS: Yes, yes, we have just enough time.

DINES: Well, it`s always very important to live well and to travel first class because if you don`t travel first class, your children will.

KANGAS: That`s a pretty - that`s a very sage observation. Jim, thanks very much for being with us again.

DINES: You`re welcome, Paul, any time.

KANGAS: My guest "Market Monitor" this week, James Dines, editor and publisher of "The Dines Letter."


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