The Gold Report: A lot has changed in the resource space since we interviewed you last. From your perspective in Mexico, how did we get to where we are today?
Dudley Baker: I stay abreast of the views of our friends—Rick Rule, Frank Holmes and many of the others in the business. Despite the toll low gold and silver prices have taken on companies and portfolios, I remain confident that those of us still invested in this sector will be greatly rewarded for our patience. It’s just a matter of time.
We are four years into this pullback right now, which means we have to be getting close to the end of this bottoming process. Two recent events stressed to me that we are near a bottom. One was the folding of our friends Casey Research into Stansberry & Associates Investment Research. Over the last decade Doug Casey has built an empire of services and expert newsletter writers. That he would join forces makes me think we must be near a bottom.
“For a small company, Quaterra Resources Inc. has incredible upside potential.”
A second one that hits even closer to home for me is that I recently received an email from my brokerage firm at market close on Friday that it was going out of business. This was a total shock. We have used Penn Trade for the last 10 years. The parent, Pennaluna & Company, is based in Coeur d’Alene, Idaho, and has been in business since 1926. Most of the firm’s client base included resource investors. That is a dramatic contrarian sign that maybe, just maybe, we are close to a bottom.
TGR: If that’s the capitulation that Rick Rule has talked about, what would the signs …read more