For those who may be interested see my notes below. He is still bullish on gold but feels the BIS deal while hurts in short term is more evidence that gold is a store of value.

7/9/10 Don Coxe Conference Call

·Times are challenging for savers of which the biggest is the pension funds (state, federal, business, etc).Pension funds used to be generating big profits.Valuations of these funds show them to be solvent at rates of returns of 7-8% which is unrealistic in today’s zero interest rate environment.As a result corporations scaling back on their Pension Funds.Realistically what assets will be earning 8% returns?

·Pension Funds invested huge amounts into real estate.They desperately need real estate to rebound which doesn’t look likely.

·Reason this is important to investors of all asset classes is if Pension Funds do not have assets that will earn what they project they will just get worse year to year.Pension Funds will then have to look at some other assets to give them returns.Some have looked at commodities but unfortunately moved into the passive commodity funds that roll monthly.Contagos (which is what we have now) mean that as you move these passive commodity funds monthly they buy less commodities going forward.

·Zero interest rates will be a disaster.Bernake has chosen to protect the debtors who made bad decisions with the individual savers getting hurt especially Pension Funds. Pension Funds are the big losers in Bernake’s policies.Zero interest rate is the only form of stimulus left so he will not change that because it is now protecting the governments.

·Pension Funds will either have to be bailed out or cut their liabilities.Taxpayers will have to make up the public Pension Fund deficits.

·Current stock market rally is one to be sold into.Coxe said we are rapidly running out of strategies.Buy and hold will no longer work.The problem with going to cash is that you don’t build anything.

·Gold commentary interesting.Deal with BIS knocked down gold sharply.While bad news short term it supports Coxe’s story which is gold is a store of value.China is creating a gold market working with the Gold Council with the result that we will get a huge new set of buyers – the Chinese population.