Strictly: Drilling II Message Board

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Strategies & Market Trends : Strictly: Drilling II

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To: Crimson Ghost who wrote (1200)	9/8/2001 5:18:44 PM
From: isopatch	Read Replies (1) of 36161

Hi George. Don't know if it was your or Slider who posted the article. It was a few weeks ago and presented a unusually well researched argument that the anit-gold forces have already loaned all but a very small residual amount of the formerly huge US national gold reserves. And within the past year have been rapidly leasing out the much smaller gold hoard of the IMF. So as long as this supply lasts, they can artificially depress lease rates and the gold price. But clearly we are in the final innings of this game. Sly's "TIC TOC" presents a very appropriate image of the fast approaching end of the manipulators game. But most important? Precisely because the PM sector is a relatively small total capitalization, the ramp up will be VERY fast and on vastly greater volume than anything we're seen in the past 20 years. Up till now, I've been content to hold more than 50% of my assets in cash equivalents like MMFs. But, IMHO? In the months ahead, the risk of being mostly in fiat cash MMF will become larger and larger vs holding a higher %age of assets in gold equities than MMFs. As the remaining gold reserves within the grasp of the anit-gold forces are loaned out and finally exhausted, the huge ramp up in gold prices that will follow will leave those in very high cash positions locked out of a significant %age of what I thing will be a ballistic lift off leg up in the PM sector. Some of my friends traded GG for small gains at much lower prices, but then missed larger up move because the were in cash trying to micro time their entry. IMO, that will pale in comparison to their frustration when they see the entire sector do the same forcing them to stand and watch OR chase much higher prices than any of them currently believe is possible on what I'm guessing will be an enormous opening break away gap in all the PM stocks. I've NO idea when this will occur. But am quite certain that it WILL happen. Never has the PATIENCE to hold onto those core long positions been more important than in the weeks and months ahead. I've cut way back on my ST trading and will continue a lower portfolio turnover rate than has been the case ytd. Frankly, I'm VERY much hoping for a nice BOE related selloff sometime next week to permanently get my own cash level under 50%.<G> Isopatch

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