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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (2913)	1/6/1999 8:08:00 PM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 82192

METAL COMMENT FOR JANUARY 6, 1999 website: lfgllc.com CLOSES METAL DEPOSIT RATES (based on 30 day maturities) February Gold $288.50 March Silver $ 5.165 GOLD 2.00% January Platinum $358.10 SILVER 2.50% March Palladium $318.95 PLATINUM 4.50% DAILY COMMENTARYGENERAL COMMENTS: The precious metals were mixed this morning with silver sharply higher, gold fractionally higher, platinum just a shade lower while itsf sister, palladium got whacked for another $10.00. The gold and silver were higher even though the stock market exploded to the upside, the U.S. dollar was very strong and there was no major change in the internals in the precious metals markets. Silver exploded to the upside overnight with both commodity funds and a noted New York Bullion Bank buying physicals. Please note that the purchases were not futures or margined transactions, these were cash trades. It would appear that these positions will not be eflippedf shortly, I would consider these to be longer term in nature. Major resistance levels were violated and prospects look very good for higher prices. Our recommendations will be listed below. There was also a release by the ECB (European Central Bank) in regards to their disposition of gold reserves. This tome, with its appropriate heavy and vague language, seems to indicate that no gold sales will occur within at least a year, or maybe never. Some analysts are still pondering the language to gain some insight. One major analyst, after reading the release had no opinion as to whether it was bullish or bearish for gold. The large speculative commodity funds are now very heavily short the gold market. According to the recent CFTC gCommitment of Tradersh report, net short positions rose to 34,586 contracts as of Dec 29th vs. 14,666 lots just two weeks ago. We continue to get friendlier to this market as the large sales by the commodity funds have not pushed the market much lower. The possibilities of some manner of a short covering rally are increasing.GOLD YESTERDAYfS RECOMMENDATION: As a cheap speculation, traders who follow our recommendation bought Feb 315 calls at .70 per ounce, now trading at .10 cents. Gold is still sitting on support at $285 to $287.00 basis spot and we donft see any compelling reason to buy it. Letfs wait until it shows some sign of life. I certainly wouldnft want to be short here though. RECOMMENDATIONS: none. SILVER YESTERDAYS RECOMMENDATION: We advised aggressive traders to sell March 475 silver puts at 10 cents or better and they closed at 4.5 cents. We still like this trade. Look to cover at 2 cents. Luckily, the recommendation for yesterday was not executed as the market gapped up higher today. Saved us a little bit of money. A very explosive day. We have been talking the upside of the market for a while and our recommendations had traders just a little long, to be specific, short out of the money puts. The chart just looks wonderful but I would have preferred to see the other metals higher as well. Letfs buy it lightly. We have been recommending the physical purchase of silver at anything under $5.00 per ounce and we still feel that this would be quite advantageous. Please note that most physical investor-related precious metal products are selling at enormous premiums and should be swapped into lower cost items at this time. Please call or email the trading desk for specific recommendations. Silver can be placed into IRA accounts. RECOMMENDATION: Buy March silver at $5.08 and use a 5 cent stop. Or, buy March silver on the first close over $5.20 and use a 8 cent stop on this side. Do this trade lightly as we can add later when we feel better about this market.PLATINUM YESTERDAYfS RECOMMENDATION: Our recommendations now have our clients long 2 units of January Platinum at $345.70 with about $1100 in the bank on 1/3 of the position. We still believe that there is a lot of room left. Use a stop on ½ of the remaining position at $339.50. Sell ½ of the remaining position at $377.00. We had to be very patient on this trade but we took a large profit on just 1/3 of our position. We do believe that there is lots of room left. RECOMMENDATION: as above. Naturally, all investors who hold precious metals should look into our reverse repurchase program whereby they can capture current lease rates. It makes no sense to own physical precious metals without gaining a stream of income. Please call with any questions.PALLADIUM: YESTERDAYfS RECOMMENDATION: Our recommendations would have generated well over $5000 profit per contract on our last trade and we were very lucky (or smart, or both) on our exit point. It is fallen about $20 per ounce since we got out. We need to get back in but this recommendation is strictly for highly aggressive traders with a high tolerance for risk. RECOMMENDATION: Buy March palladium at $305.00 and use a $20 stop. Leonard KaplanChief Bullion Dealer