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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (921)	5/6/2005 10:16:05 PM
From: Larry S.	Read Replies (1) \| Respond to of 972

Wade & Dan et al, Interesting observation Wade. It is consistent with the GMI ratio as I understand it and consistent with the views of quite a few gurus such as Bishop. As I noted nearly a month ago, we seem to be in a consolidation and the GMI ratio bit doesn't appear to offer any help in figuring out where we are or are going but up appears more reasonable than down from here. I notice that the Treasury is considering reinstating the 30 bond. I seems clear to me that they are expecting deficits to continue and inflation to take interest rates significantly higher. Their only way deal with our debt is to inflate. Sad! The 30 year will be the place for the Treasury to be in this event but I wouldn't touch them. It will also increase supply and drive up rates. AND, IN MY OPINION, DRIVE UP THE PRICE OF PMs The jobs report today was something from la la land. 257,000 of the 274,000 jobs were created through their birth/death (of companies) model. The dollar bulls were excited by it and drove the dollar up and drove the POG down but I suspect that, by Monday, they will understand the most of the jobs are a figment of the BLS's imagination and things will turn around. I haven't noticed anything in Barron's recently of particular significance to PMs nor have lease rates told me anything. They are just very very low. So; I will get on with posting the BArron's GMI info from last week's Barron's. The GMI/POG ratio: On 4/28, the Barron's GMI was 560.46 down significantly from last week's prior 603.45. With the POG upo significantly at 435.70 (4/29), the ratio was down at 1.29. The ratio continues in the middle range where it doesn't suggest a rise or drop in the POG. It is clear that there is essentially no speculation behind the price of stocks at this time. The ratio a year ago was 1.37, reflecting the fact that the optimism had been taken out of the markets. Larry