Tuesday, February 15, 2011

Industry Watch: Roger Wiegand on China’s Iron Ore Demand, Gold, and Silver Prices

January 25th, 2011: Roger Wiegand of Trader Tracks newsletter and www.webeatthestreet.com sat down with Al Korelin to discuss China’s iron ore demand, as well as his thoughts on the price of gold and silver.

Full Transcript:

Al: Hey I’m Al Korelin, thanks very much for joining me. Vancouver, British Colombia, shooting videos up here and having a great time. This is probably going to be one of the most enjoyable videos that we’ve shot because I’m chatting with my buddy Roger Wiegand, Trader Rog. Roger and I do a lot of work together; Roger lives just down the street from the little blonde lady and myself. He is a regular contributor to our website. I met Rog probably about 6 or 7 years ago, introduced by a mutual friend of ours, Laura Stein. She said ‘you’ve got to meet this guy- he’s brilliant’. I started to have him on the radio show- we were talking about real estate back in those days- and I’ve got to tell you this guy’s predictions were right on the money. It was almost scary. Now he comments on our show on the markets, on political issues, etc. etc. Let’s start out with the markets. I’m pretty bullish over the next 2 and a half years in terms of the resource sector, both the stocks and the commodities. What do you think?

Roger: Absolutely, I agree. The thing that’s interesting that I learned yesterday at the show was that I got more updates on base metals which are a little bit out of our purview but the push is on. I mean, copper prices are firm, and I saw a number in a report today that said iron ore is going to be up 60% this year.

Al: I want to tell you a funny story about that Chris Burry, Dr. Michael Burry’s son, came on the show about 3 weeks ago and he was talking about iron ore and I said you know what? I don’t know much about you Chris, but I know your dad really well and I know that his observations have been really really accurate, and it would appear that Chris’ are very accurate also. What’s the deal with ion ore?

Roger: Well primarily the deal with iron ore is that Asia has an almost insatiable demand for iron ore. Not only are they building all these cars and trucks, but the infrastructure requirements for steel and iron are tremendous, and the prices are going up a lot because of limitations on coking coal for making iron ore and steel, and also for the limitations of the furnaces and the equipment that they have to make it. People don’t really understand, Al, I don’t think they understand how big China is and the insatiable demand that they’ve got for base metals like copper and iron ore.

Al: Bigger and bigger.

Roger: Keep in mind that China has over 100 cities with over a million people, and almost all of it’s growing, and they’ve got the push on. They’re trying to control inflation which is getting out of hand, but at the same time they don’t want to curtail everything, they don’t want to shut it down, they want to keep the ball rolling and they’re spreading out.

Al: I want to change horses just a little bit, so to speak, in mid-stream, so I hope we don’t drown, but we’re in a bit of a correction right now in terms of precious metals. Silver was on an absolute tear, over $30 very recently, gold was on a tear, up at well over $1400 just recently, backed off a little bit, now gold is down in the low to mid $1300 and ounce, silver is down just a shade over $27 an ounce, $26 an ounce, whatever. Chatting with Randy Turner earlier, Randy feels that we’re in a correction that is very healthy. His comment was if the price of gold continues to go up at an almost vertical level, he said that the crash then could be really significant. He said ‘I think the correction that we’re going through right now is normal,’ and he said ‘I think it’s healthy’. What does Trader Rog think?

Roger: I absolutely agree with that. When you think about it, the high we had recently in gold was like $1432 and on this day we’ve been touching my floor number that I figured we’d have good support at $1325, so $100, big deal. Out of $1400, $100 is just a tiny little move, and you have to have these corrections technically because that’s just the way trading is. When people make money, they take their money. We have a technical correction, we find a new support, and then we go higher.

Al: No question about it. Let’s wrap it up by you telling the folks a little bit about trader tracks. It’s a great newsletter.

Roger: Trader Tracks was founded by myself and Jay Taylor in 2004 and we’ve been growing steadily every year. I put out my biggest issue last week before the Vancouver Resource Conference- we did 30 pages. Normally we don’t do that much, we do 20-24 pages a week, it comes out by e-mail on Friday night, and the topics we cover generally are some politics and economics, but we also focus primarily on gold and silver and trading and shares. I would say at this juncture there’s maybe 85% of our readers are busy with the shares both junior and senior, with a focus on the junior. So we address that to the extent that we can, but the letter has been growing in the futures and commodities area as well, and personally that’s what I do for my own retirement account.

Al: I’m going to make it easier. Nobody’s going to remember this stuff so we’re going to make it real easy, and that is that we provide a link on our website to Trader Tracks. Roger is also featured every single day on our website so if you simply click on the segment that he does for us every day, actually 2 segments, you can get all the information there also. Let me tell you, this guy knows what he’s talking about. He’s very bright. There are no conflicts of interest in his newsletter, in the sense that I know for a fact that he does not invest in the companies that he writes up. Not because he doesn’t believe in them, but because he doesn’t want to have any conflict of interest. I’m a little different; I do invest in the companies because you guys know about every single thing that I do. Don’t construe what Roger and I are saying as investment advice because it’s not, neither one of us are registered investment advisors, we are simply telling you what we’re doing ourselves. Thanks for watching.

To learn more, visit:



Sign up for our FREE newsletter!


No comments:

Post a Comment