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

To: jrhana who wrote (25374)	12/11/2003 8:35:29 AM
From: jrhana	Respond to of 39344

<Each man has to kill his own snakes> From Richard Russell: On yesterday's site I showed that the gold stocks are extended, let's just call them "overbought." Newmont, the leader, the bellwether, blasted out of a huge base, and on the point & figure chart it looks like a flag pole coming out of the base -- a straight up spurt. What to do if anything? Should you take profits, should you take half-profits, or should you sit tight? How good is your stomach if the gold shares correct? What if they don't really correct, what if they just back off and sit there while their 200-day moving averages slowly rise to meet them? And the big question -- you have a nice position in gold and silver stocks now. It's just the kind of position you want. You know through experience that if you sell all or even some of these stocks now, you have the problem of whether you'll buy them back after a correction -- even assuming you can identify the bottom of a correction. C'mon, let's be honest. Your experience tells you that you won't buy them back -- well, maybe you'll buy half of them back (and then there are those darn taxes). You see there's no easy way to solve these problems. And you know full well that "the market can do anything." And you've seen from the beginning, from your early purchases of gold shares back in 1999, that it's "tough" all the way up. Big moves, big corrections, big worries. Nothing's easy. To each his own. Each man has to kill his own snakes. Me, I do it a very strange way. My wife Faye knows the gold story as well as I do. So I asked her last night, "Do we take profits or not?" Faye says "We sit tight." I said "Fine, you're smarter than I am, that's what we'll do." And that's what we will do. Basically, nothing. The background for holding gold and silver shares is extraordinary. The US government is spending like a drunken sailor -- no, like a thousand drunken sailors. Fed Chairman Greenspan came to office when there was a total of $11 trillion in worldwide use. Since Greenspan has taken office, the ocean of US money has increased 45% -- to $16. Fed head Greenspan is the biggest inflationist in world history. And he's not inclined to stop now. You see, Greenspan's got his legacy to consider, and Bush wants four more years....... Gold/Dollar Index ratio was down 3.40 to 455.80. One share of the Dow buys 24.37 ounces of gold. One ounce of gold buys 72.42 ounces of silver. Gold and silver advance-decline line was down 20 to 1349. XAU was down 4.79 to 103.04. HUI was down 14.60 to 227.62. Remember, advances in a bull market are slow and tedious. Corrections in a bull market are sharp and violent. ABX down .65, ASA down 1.12, AU down 2.06, BGO down .27, CDE down .47, GLG down .94, HL down .45, NEM down 2.07 to 45.70, PDG down 1.07, RGLD down 1.44. WHT down .21. High-volume downer for the gold stocks today. Every whack to the downside puts gold and gold shares in stronger hands and weeds out the Johnny-come-lately's. Gold and silver stocks have come a long way without a real correction, and they got a taste of the downside today. Don't look at gold or gold stocks as a trade or a source of a quick profit. Look at them as an integral portion of your assets to be held for the long, long pull, maybe for years.> I have found listening to Richard Russell has been an intelligent thing to do. He listens to his wife and I isten to him. So I listen and will ride this out. I broke my no more quoting Richard Russell rule because I thought this might help soothe a few nerves. Now guys even with the correction, you can afford a subscription. Less than a dollar a missive.