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Gold/Mining/Energy : Hecla Mining(HL) -- Ignore unavailable to you. Want to Upgrade?

To: Terrence Von Holidae who wrote (205)	12/30/1997 8:25:00 PM
From: dwight vickers	Read Replies (1) \| Respond to of 629

Terrence, I suspect that neither BM nor HL would rush into an acquirers arms at anything approaching these prices, as you surmise. Very interesting strength in the metal stocks and the XAU today. In the face of down days in both silver and gold. Would like to see some follow through to prove it isn't just tax loss selling abating. Thanks, Dwight

To: Terrence Von Holidae who wrote (205)	12/31/1997 11:00:00 AM
From: Roebear	Read Replies (1) \| Respond to of 629

Terrence (and All), I did it again, I sold half HL out for a very small profit Monday to buy back this week cheaper. Also took profit on ABX, will get back in that when see bottom and am also looking at HM. It may be a small dip but I could see it coming, if I were more certain of it I would have posted at the time. Here is a post from DA on kitco, who is always worth reading, to give us hope for the New Year. Date: Wed Dec 31 1997 10:01 D.A. (re.silver.supply.and.demand) ID#7568: Blonde: I have read several of the supply / demand reports put out by various analytical groups. Here's a summary of CPM group's early 1996 report. cpmgroup.com It is interesting to note that the inventory decline on comex has been underway for some years now. Up until recently it is highly likely that this silver has been consumed as opposed to hoarded. The most recent drawdowns in inventory are likely speculative in nature but that is reasonable given the amount of supply remaining. There is nothing about this recent decline that smacks of a change of heart by the players. Ask yourself, if you had built a significant speculative hoard of silver with the intent to squeeze the market would you try to liquidate your position in this fashion? Selling a few million ounces on the globex during perhaps the least liquid market position one could hope to find does not seem like someone carefully trying to exit a long position. It is most certainly a raid by another player who feels that technically based longs can be driven out by a quick strike down. The people behind the squeeze may be quite happy to see this action and not interfere. It just allows them to increase their position at lower prices. When this selling runs its course the next leg up will begin. Given the accelerating rate of inventory decline I think it will be the climactic one. I believe the players are looking for a palladium type ending where the squeeze is successful in that a new 'base' level is established for the commodity. In this way they can sell their metal slowly into the market. Before the new equilibrium price is established we will in all probability see an overshoot of some magnitude. In the palladium squeeze the overshot was about 25%. If the new equilibrium price is around $7-8 then the top could be somewhere around $10. Return to Kitco Homepage Have a Happy and Prosperous New Year Roebear