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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: ralfph who wrote (18344)	8/27/2003 8:30:24 PM
From: CuriousGeorge	Respond to of 39344

Financial Sense Online - Market Wrap Up <snip> www.financialsense.com/Market/wrapup.htm Gold & Silver Gold came into the New York session today at $365 per ounce, went straight up at the open for a gain of $5 and never looked back by adding $7.00 or 1.9% from yesterday to close at $372.30. Likewise silver came in at $5.00, shot straight up to $5.08 at the open and ended the day closing 13 cents higher at $5.16, a gain of 2.6%. This is getting to be exciting as the breakout is upon us. In my estimation gold will need to close above $375 and silver will need to close above $5.20 to confirm the breakout. The Unhedged Gold Bugs Index (HUI) closed today at 193.93, a gain of 11.18 points or 6.1%. That’s a fresh new high for gold stocks since the bull market began in the fourth quarter of 2000. In the middle of March this year, the HUI Index hit a low of 112.61, so with today’s close the index is up 72% in less than six months. That is three times better than the performance of the overall stock market since the war rally began. It looks like precious metals is the place to be! With the consolidation in the gold price over the last three months, I have been watching the lease rates to see if there is any growing stress in the physical market. The real gold market is about the paper shorts versus the physical market. Prices are held down via short selling of paper contracts, but there is a wall of physical buyers that stand prepared to buy at the slightest dip in price. There is also an ongoing battle between the speculators and the commercial bullion banks. As it stands, the speculators continue to pile in on the long side. Nothing would please me more than to see the greatest short squeeze of all time force the commercial shorts to cover. A few days ago I noticed that the lease rates broke out from their downtrend and were headed straight up. I thought to myself that we were probably getting closer to breakout with the stress in the physical market as indicated by the rising lease rates. When I saw the price heading higher this morning I thought the lease rates would be going even higher. To my surprise the rates came right back down which left me scratching my head until I learned that Greece unexpectedly dumped 20 tons of gold on the market last week. Out of nowhere they decided the gold should be sold and the proceeds invested in interest bearing instruments. It looks like somebody needed a large quantity of gold in a hurry to satisfy the physical market. They got their gold and lease rates reacted accordingly. Twenty tons seems like a lot of gold, but it really isn’t from a global perspective. India is the world’s biggest buyer of physical gold. They import 1.6 tons of gold EVERY DAY into Bombay which accounts for 70% of India’s needs. If the physical market is as tight as I think it is, the 20 tons that came from Greece will be gone in short order. Actually, the 20 tons could last the bullion dealers that are shorting gold longer than normal since the gold bullion marketing district in Bombay was blown apart on Tuesday with car bombs killing 48 people. I don’t have many details on the bombing, but could you imagine if the area was bombed to slow down the bullion trade? It may be far fetched, but desperate people do desperate things when the stakes are very high. In any case, currencies are losing value globally as governments attempt to re-inflate the fiat money machine. Precious metals and commodities will end up the winners of the competitive currency devaluations.

To: ralfph who wrote (18344)	8/27/2003 9:43:31 PM
From: E. Charters	Read Replies (1) \| Respond to of 39344

Used car salesmen is as fine a management team as you can get on the VSE. Lord forbid it should be a minung injuneer. Them dweebs would really fuch it up. What is the name of the IWA big scary guy? Some Irish thing, like Clancy, or Fitzpatrick. Absolutely irrepressible. Can't stop him from smiling, even when the stock is 3 cents. Something wrong with that. If any chick posts on the testo-net she has to have a spare set of balls to wear just to do it. Chicks don't do net good unless they have learned to adapt. It is like you are fixing a car, and the women leans over the fender and says, "Look, I don't know what you are doing down there, but it has to be the armstrong-pitcock valve on the trannie, because the vacuum gauge always fibrillates at 14 pounds in 2nd gear on a hill. It's either that or the main seal is gone. That and you gotta change the filter." And she is right, and you thought the schrader was plugged and the bands were wore. eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee I don't know about IWA becoming a mine. If it does will you tell me. Give me two days warning. I want to get the suit drycleaned so I can join the parade on Howe Street. EC<:-}