Introduction: Shawn Perger is an author, speaker at investment conferences, and an entrepreneur who has more than 20 years experience working within Vancouver, Canada's vibrant venture capital marts – arguably the center of global venture capital finance. Additionally, Shawn has lived and worked in Switzerland where he developed a network of institutional financial relationships. Most recently, Perger has sold his newsletter, Swiss Confidential and even closed down Foremost Research Group to found a gold-mining company called Dicon Gold Inc.
Daily Bell: Welcome back. Let's dive right in, shall we?
Shawn Perger: It's nice to be back, always a pleasure.
Daily Bell: The last time we interviewed you in January we discussed, among other things, the price of silver and you laid out some pretty convincing reasons as to why it was poised for tremendous growth. Are you surprised with just how much its price has risen in only a few months?
Shawn Perger: When I was here last time silver was trading in the $30 per ounce range and today it is hovering just below $50. Am I surprised? Not really. Although as you'll recall I do not make price projections. I am focused more in my research on the macro elements affecting the business cycle and then positioning myself in the sectors most likely to benefit. Silver, precious metals in general, have been a strong "trend buy" now for several years and it is a trend I see continuing for many years to come.
So when you ask me am I surprised to see silver rise so much in short time period, the answer is no and I am not really that focused on it, either. I buy the trend and stay focused on the macro dynamics.
Daily Bell: Refresh our memories a bit. Why is it that you see silver continuing to rise in price?
Shawn Perger: Well for starters I think it is important to clarify something from a terminology point of view. Silver and gold too for that matter, do not rise in price. They rise in purchasing power. There is a big difference there.
It is the purchasing power of all fiat money, and the US dollar in particular considering it is the world's defacto reserve currency, that continues to devalue. Why? Because the money mafia wants it to. They are paving the way through monetary devaluation and the incitement of global conflict towards a "global G20" agreed upon solution that will hand the UN political control and the World Bank/IMF monetary control. At least that is their plan.
But as you point out in the Daily Bell, and in particular in your column yesterday, titled Does the Internet Have a Dark Side?, the elites are facing an intellectual rise in consciousness that they didn't plan on. The Internet is spawning a 'Net Reformation of sorts – yes, I agree with that. The result is masses of people waking up to the contrived plans of a monetary mafia who wish to enslave them under globalism and taking action – Human Action – to defend themselves.
What the elite is doing by overprinting money translates into a constant increase in new money that instantaneously devalues all existing units of money in circulation. So how Ben Bernanke can stand up on international TV and say outright lies about the Fed wanting a strong dollar when he is the principal steward of the money creation process and the artificially depressed level of interest rates, is simply beyond comprehension for anyone with an inkling of understanding of Austrian economics and the basic nature of money.
Gold and silver will both continue to rise versus fiat money as Internet Reformers – Free-Market Thinkers – take action into their own hands and convert from rapidly devaluing dollars and other fiat currencies into "free-market money."
Daily Bell: Do you think the Internet Reformation will affect other areas of elite control? Will it stop the drive towards global governance?
Shawn Perger: Yes I certainly think it has an impact. Take mainstream media for example. It is entirely under the control of a few related hands. In fact, something like 90% of all media consumed via mainstream channels can be traced back to less than 10 controlling media conglomerates. Think about the power that gave those intent on utilizing that power to manipulate people into desired actions.
Fear is always the method used to control people. Those who have the control pull these mainstream media levers. Today the Internet is fairly free (as of now) from this overwhelming control, at least where news sites like this one are concerned. And they hate it. It is enabling knowledge to spread and topics to be explored and debated and it is causing an understanding to spawn that runs counter to the propaganda sent forth from mainstream media and entertainment sources.
So to answer your question, the reason circulations are down for major newspapers and magazines, the reason broadcast revenues are declining, and the reason elite pawns like Hillary Clinton, Barack Obama, Joseph Lieberman, et al. are vociferously calling for Internet control, is because the elite are losing the battle for mind control.
That is another result of the Internet Reformation that is unfolding before our very eyes. I firmly believe that the force (Internet controls) they wish to enact will fail miserably. The truth is out there for many to see and understand. The fraudulent intentions of those promoting global governance and a single monetary unit are clearly being exposed as mainstream media's ability to promote the CFR, Trilateral Commission and Bilderberger's fear-based agendas is floundering.
In the end, like the last Reformation that ensued on the heels of the last great communication-driven thought revolution, the elite will probably find a way to step forward from the shadows and take control once again. But that's what history is, ebb and flow. For now and maybe for a long time to come we may get a reprieve, though unfortunately only temporarily.
Daily Bell: We agree the power elite never expected this level of pushback and is going to take a step back for a bit. Tell us more about your future plans. The last time you joined us you alluded to a new venture of sorts you were possibly embarking on. Has that materialized?
Shawn Perger: Yes, it is in the process of materializing. I guess you could say I feel as if I am about to tie together a lot of strings that have been part of me and venture forward into a project that will be a measure, to a large degree of who Shawn Perger is. I have sold my newsletter, Swiss Confidential. I have even closed down my research firm, Foremost Research. I am going all in, so to speak, to what I expect to be the crowning achievement of my life.
What I mean by that is simply this, for many years (20 plus) I have worked in various capacities in the natural resource industry. Mostly in the financial end of the industry, helping to build management teams, raise working capital and improve the visibility of mining companies' operations. During that time I have had the pleasure of working with some of the most sincere and intelligent business people a person could hope to be influenced by. I was a willing student. Always eager to learn more about how the "big picture" works.
Eventually, it was the desire for knowledge that led me to the Mises Institute, Lew Rockwell.com and all the other great free-market sites that one can visit, and there are more and more of them from what I can tell. Today I consider the Daily Bell a favorite one-stop free-market knowledge shop. But my point is this, the educational journey that I found myself engulfed in over the past decade, combined with my practical business experience in the natural resource industry, has culminated in my desire to lead a winning effort to develop a world-class honest money (Gold) company. And that is exactly what I am in the process of doing.
Daily Bell: Pardon our skepticism here, but does the world really need another junior gold mining company? What will make your effort any different than any of the others out there?
Shaw Perger: Yes, you're right. The mining industry is plagued with baseless business plans with every Johnny-come-lately entrepreneur registering a name, putting together some half-assed management team and then acquiring a moose-pasture project to promote around the trend. The problem is that there are so many unsophisticated investors who are investing for the first time in gold and gold stocks that they are easily duped.
I have had the pleasure, as I mentioned above in working with some very successful people in the mining industry who worked through the tough years. Believe me, I know how difficult it was in the late 90s to keep the necessary capital flowing into corporate treasuries of gold exploration and development companies. But we did it because the projects were real. The people were building value NOT because the trend was in fashion, but because they believed in the value inherently contained in gold and building the resource base in their companies.
Now that I have worked in North America and Switzerland and built a network of international financiers who respect the value of building a real company, I am marrying that team of powerful financing partners with an equally powerful team of mining professionals who will comprise the Board of Directors and operating Officers of the company.
In the mining industry it is the combination of the two, money and management, that enables bigger value projects to be acquired and developed. And in today's market, property vendors with strong privately-developed gold projects are seeking equally strong partners that can reach broader markets and further enhance the value of their projects.
Contrary to what some people may believe, there are still great gold projects out there in private hands. The key is finding them and negotiating with the families who control them. They need to see quality people with quality financial backing. When they do, assuming trust can be established, a mutually beneficial deal can be struck.
Too many two-bit shysters have left a bad taste in the mouths of property vendors. The vendors watch as the "value" is inflated in the public markets to the betterment of the promoter and the vendors, along with the general public, are often left with a headache. I intend to build real value and have identified where we are going to do that, at least initially.
Daily Bell: Is there a name for this new gold mining venture?
Shawn Perger: The name of the company is Dicon Gold Inc. I named it after my greatest inspirations in life, my wife Diana (Di) and my son Connor (Con). I thought the combination of the two sounded great and the motivation to build a world-class mining company is further entrenched in my psyche by anchoring its very name in those I love most in life.
Daily Bell: Is Dicon Gold Inc. a publicly quoted company?
Shawn Perger: No it is a private Canadian corporation.
Daily Bell: Any intentions on going public?
Shawn Perger: At this time it is safe to say that we have sufficient access to capital to make our planned initial acquisitions. However, as we grow forward we will likely need to broaden our financing potential and that would likely require us obtaining a market quote for our securities. Canada's venture markets are ideal for raising capital, both domestically and internationally, for natural resource companies and gold mining ventures in particular.
Daily Bell: Can you tell us anything about these "planned" acquisitions you have in mind for Dicon Gold?
Shawn Perger: At this time I can say only this, the assets are in historic gold mining regions of Colombia. Colombia is one of the best, if not the best, places in the world for the development of large gold deposits. It has a long and well-documented history of gold production.
Daily Bell: Isn't Colombia a dangerous place to invest and visit?
Shawn Perger: No. That is a carryover impression from the days of Pablo Escobar and his drug trading. Today, Colombia is one of the fastest growing economies with billions of dollars flowing into the country from international financial centers seeking to be part of Colombia's fantastic growth. And nowhere is that more evident than the gold mining sector.
You see ever since President Alvaro Uribe came into office and set forth an aggressive policy of reforming the country's criminal element – policies that have been continued by the new Colombian President Juan Manuel Santos – there has been an ever-widening band of security created around the major population centers – particularly the urban areas of Bogota and Medellin. Think of the security clean-up operation as a beehive. Each day the bees went out a little further and advanced the security of the areas they ventured into. As this happened and continues to happen today, the bands of security become broader and broader – opening up assets in regions that were previous too dangerous to work in.
Today, something like 2-3 % of Colombia is still "dangerous." But those areas are located so far towards the outer boundaries of Venezuela, Ecuador and Peru, that the only reason you would find yourself in those regions was if you purposefully set forth to do so.
However, in the outer bands of the "beehive" there are tremendous gold mining projects that are now safe to acquire and develop. There are lots of multi-national gold mining companies now operating, or starting to operate, in Colombia. There is simply no other place with such untapped potential for the development of super-size gold deposits. In fact, a few years ago, mining giant Anglo Gold moved their head offices for South American mining operations from Lima, Peru to Bogota, Colombia. They did it for a reason. Colombia is the place to be.
Daily Bell: How do you intend to get Dicon involved in the right projects?
Shawn Perger: I have many contacts in the mining industry after spending more than 20 years working with the best in the business. One of those people is a top Canadian geologist who has been headquartered in Colombia for almost 30 years now and has been there through the thick and the thin of that era. He and his logistical team have built deep social relationships with the wealthier and more private Colombian families who have held the ownership rights of some very attractive gold projects for many generations. In Latin America, and Colombia in particular, it is relationships that matter most – even moreso than in many other areas of the world. Trust is not easily achieved, and nor should it be. But once a bond has been built, which takes many years, it is a bond worth having.
My partner in Colombia is such a person. His bonds run deep within the Colombia business community. And he has identified several projects of interest to me and, by extension, Dicon Gold. Some of these projects are even in production, albeit small-scale due to a lack of capital investment. But that is where the opportunity is, in bringing the necessary expertise and financial resources to cooperatively develop the potential of these gold deposits. The potential rewards are very high. And I intend to move quickly on the opportunities presently available for Dicon Gold to develop. In fact, I am literally packing my bags to head down to Colombia as I do this interview with you.
Daily Bell: Sounds exciting. We wish you luck. Any final thoughts.
Shawn Perger: Well, only that I encourage people to really do your due diligence before investing in any gold or silver mining company. It takes an awful lot of hard work and dedication – not to mention contacts, skill and a little good luck – to achieve success in the mining industry. If you view the market as a casino, well then play the promoters. But if you are looking to build real value, then you better take a good look under the hood to make sure the car you climb into can make the journey.
Personally, I like German engineering and am only interested in driving a well-built machine. We expect to have a website up within the next couple of weeks, but in the meantime if you drop me an email I will be sure to keep you informed on our progress and let you know when the site is live.
Daily Bell: Thanks for the interview.
Shawn Perger: It has been my pleasure. And if any of your readers would like to understand more about the money mafia and its control mechanisms, consider reading my book, Crisis Cycle Investing.
We're pleased to present a follow up interview with Shawn Perger, an investor who has educated himself in Austrian investing techniques and has always looked for insights into how to identify opportunities for himself and his clients.
Shawn is an author and speaker at free-market-oriented investment conferences. Over the past years, he's taken it as a personal mission to introduce clients to practical, free-market solutions that can greatly enhance their ability to protect and grow wealth.
Notably, Perger is the author of a book called Crisis Cycle Investing that espouses a Bell-like point of view when it comes to analyzing investment opportunities. In the book, Perger emphasized the promise of a silver price rise, and subsequent to the book's publication, silver rose from the mid US$30s to nearly US$50.
This is only one of the benefits of free-market thinking and understanding how business cycles work. From our point of view, Shawn is a good example of someone who has educated himself about free-market investing and has used his education to help others.
As we wrote yesterday, Tomorrow's knowledge base may look much different than today's, thanks to the Internet, and ironically, the 20th century so celebrated by the centralizers must at least to some degree give way to a decentralized Renaissance in the 21st. The powers-that-be will fight back as they already are via wars and the fomenting of social chaos, just as the Catholic Church responded with its Counter-Reformation; but eventually the power elite may be forced to take a step back as they have before.
Throughout the world, and especially in the West, individuals are benefiting from the alternative information available on the Internet or, in Shawn's case, utilizing that information to benefit their families and their professional efforts. Shawn Perger is a good example of someone who has used this information to his own personal and professional benefit by employing Human Action and taking responsibility for his own life decisions.
Whether he knows it or not, Shawn is a kind of Internet Reformer. Through his educational publishing efforts and speaking engagements, he has helped raise the consciousness of others regarding free-market thinking. His insights into gold and silver as related above, led him to make a generalized prediction that silver would continue on an upward trajectory.
Such insights are practical when one understands the business cycle and how it works. The fiat-money so-beloved of the powers-that-be is innately destructive and the dollar-reserve system itself has fallen apart over the past three years. As fiat money devalues after a great bubble such as that which occurred during the mid-2000s, gold and silver usually gain in value considerably. In fact gold and silver have been gaining in value for the past decade.
But Shawn's insight is one that we shared as well, knowing that gold gains in value first in the counter-business cycle and then silver and then "paper" gold and silver. This is because people bid up each item until they are unaffordable for average pocketbooks. Gold always goes high first, then silver and then various other paper plays on gold and silver including of course mining stocks. Perhaps that is why Mr. Perger's timing on launching a new gold company will be very fortuitous.
If people can get out ahead of this curve, they can actually gain wealth from the turnings of the business cycle. It is not merely hypothetical information as Shawn himself has shown. The cycle – which is deflating current economic distortions caused by fiat-money – probably has another four-to-five years to run. It is mimicking the business cycle of the 1970s, which ran about 10-11 years. But this cycle will run longer because the distortions are deeper.
Shawn understands this cycle and its ramifications and has acted on them, to his betterment and the betterment of his clients. But this sort of knowledge is democratic and history shows us that anyone who cares to study free-market economic theory can soon come to the same conclusions – and act on them as Shawn has. He simply provides us with yet another example of how free-market thinking, far from being theoretical, is of positive benefit to people's lives.
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