Mr. James Dines: This Is the Most Undervalued Metal on the Planet

Written by Nick Hodge
Posted February 20, 2017

Publisher’s Note: Mr. James Dines is a legend in the business. In fact, he pretty much started the financial newsletter industry back in the 1960s after the Wall Street brokerage where he worked fired him for being bullish on gold. He of course was correct, and those who listened to him and bought gold at $35/ounce made a killing. He also called Apple at 44-cents and has made too many other correct predictions to list here.

But heed this: Mr. Dines is now calling for silver to trade higher than gold. He says it’s “the most undervalued metal on the planet.” The interview below, conducted by Gerardo Del Real, covers this topic and many more that you should find extremely interesting and valuable. To learn more about the "orignal goldbug", you can read The Legend of James Dines.


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Nick Hodge
Publisher, Outsider Club

Gerardo Del Real: This is Gerardo Del Real for Resource Stock Digest. Joining me today is someone who really needs no introduction, Mr. James Dines. Mr. Dines is the editor of The Dines Letter, and has a legendary record in the investment community. His contrarian approach to investment analysis has led to Mr. Dines accurately forecasting trends for over many decades.

He was the first analyst on Wall Street to recommend gold at $35 and silver at 92.5¢ and Mr. Dines is "The Original Goldbug," "The Original Silverbug," and one of the original founders of technical analysis using charts to forecast. He also pioneered recommendations in internet stocks starting in 1995 as the original internet bug. He predicted the internet boom, the uranium boom, the rare earth bonanza, and as the original pot bug, he recognized the profit potential at its earliest stages. Mr. Dines has consistently gone against the grain and delivered gains that have been passed down for many generations.

Mr. Dines most recently called the bottom in uranium just weeks before the upturn in the spot price of uranium and the subsequent rally in uranium stocks, and I'll get back to that, but first, let's talk about gold and silver stocks, which are absolutely on fire. Mr. Dines, it's a real pleasure. Thank you so much for joining me today.

Mr. James Dines: Thank you Gerardo. You ask penetrating questions.

Gerardo Del Real: I really appreciate that. I mentioned uranium, and you called a bottom in uranium. It was spot on, and I want to get to that in just a bit, but you also recently called the bottom in gold and silver stocks just prior to that, and I'd love to get your thoughts there and what you're seeing in the market and in the gold and silver stocks.

Mr. James Dines: Sure. One of my pioneering mass psychological concepts is the Dines Wolfpack Theory. I call it "DIWPAT," so that you could make money by getting one or two right and then home in on the other two of the four. For example, gold and silver are up, so palladium and platinum should soon rise also. And uranium is also cyclical as well as cannabis. The field of raw materials is cyclical and very profitable if you can get the upturn, the timings of the upturns right. It includes mines, oil, iron ore, uranium, cannabis, all of them, and within this whole raw materials field, there are islands of profitability that move together.

We flashed a “buy signal” on gold and silver in The Dines Letter of February 5th, 2016, on page 15 of The Dines Letter, one year ago. That was within two days of rock bottom. I can't do better than that because it takes two days to publish and disseminate. Anyway, there have already been two huge major gold bull markets. The first wave took gold from $35 up to $850 per ounce. The second wave up almost $2000, and the next wave, the missing third wave should take it up to between $3000 to $5000 an ounce. And silver well over $100 an ounce.

There's a huge up move ahead. And that move, if my theory is correct, is about to begin. The Dines Letter, the latest issue is especially bullish on silver, calling it the single most underpriced metal on the planet, believe the unbelievable or not.

Gerardo Del Real: So Mr. Dines if I understand this correctly, you're saying that silver is the single most undervalued metal on the planet right now?

Mr. James Dines: That's right, and look, I'm “The Original Silverbug.” I could go on and on about gold and silver. I think if some people are really interested in that they can read my "Goldbug!" book, which contains everything I know about the subject.

Gerardo Del Real: Absolutely, and a book that I've benefited from greatly, Mr. Dines. So let me pivot back to uranium. We touched on it in the intro a little bit, and I had the pleasure of speaking with you on December the 12th, late last year, and at the time you called the bottom in the uranium space and like clockwork, a few weeks later we saw the spot price of uranium bottom and then head nearly 30% higher with many of the uranium stocks – long despised – seeing double and even triple digit gains. You were “The Original Uranium Bug” at $8 a pound, before it hit $150 a pound. How do you see the uranium market developing from here and what's the best way for speculators to participate in this new uranium bull market that you're calling?

To continue reading this interview please click here...

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