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Strategies & Market Trends : Talk to Lola:) -- Ignore unavailable to you. Want to Upgrade?

To: Jon K. who wrote (1329)	10/12/1999 2:29:00 AM
From: Lola	Read Replies (2) \| Respond to of 2010

Well there are number of factors to consider with Au. At first glance one might think it's overbought but I really believe that it's not overbought. We might see a slight correction from current levels but I think $400 to $500 is not out of reach in the next 6 months or so. Factors to consider that most people do not with gold are: 1. Nobody really knows how big the short position is . . . all we know is that it is really, really big. 2. Lease rates have gone up so much that it makes less sense to borrow the gold now. 3. Gold shorts are supposed to protect themselves with calls but most don't so when gold all of a sudden popped it created a worldwide panic. 4. Many calls have reached expiry and the new calls are not that attractive in price for the short sellers to buy protection in the event that gold continues to explode. 5. Asians are really into gold and will start to accumulate like crazy now that gold has definitely reversed trend. 6. Many gold producers have been short on gold as well so they too have to cover their short positions. It's like all of a sudden everybody needs (must) buy gold. That reversed the trend and now the regular guy on the street will go nuts to buy it too. That is what will push gold above $400 to $500. It may even go higher but I don't like to think that far ahead. Gold mania is definitely about to start with retail investors . . . it's only just begun. I don't see gold going much below $300 for very long. The short position is still huge and if the overall market tanks gold will actually rise and so will all gold related stocks. It's all about supply and demand. Gold was extremely oversold . . . it's just that nobody knew how oversold it was until it popped like that. If the US market crashes as we all think it will, that is very positive for gold. All of a sudden people will jump out of Internuts and all the other stocks which I believe will tank bigtime because of their crazy valuations and they will buy gold and gold stocks. Lola:)

To: Jon K. who wrote (1329)	10/12/1999 9:25:00 AM
From: Lola	Read Replies (1) \| Respond to of 2010

More gold insights from the Kaiser Bottom-Fishing Report . . . - juniors will rule the next gold cycle - almost all major gold producers have been forward selling and shorting gold in an effort to profit from the downtrend in gold - some major gold producers have lied to the public about their average hedged prices - Thursday, Oct. 14th is a critical day as Barrick is scheduled to do a conference call to talk about it's third quarter financials. - Frank Veneroso (some gold expert dude) says there might be as much as 14,000 tonnes of gold sold short . . . this amount is half the entire central bank reserve of 1.1 billion ounces . . . this short squeeze is not over. So bet on gold but bet on the juniors and intermediates (like DROOY) not the senior golds (like Barrick). Might even be a good idea to short Barrick on any runs but I won't be doing that. Lola:)