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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: TD who wrote (1780)	3/9/1999 2:36:00 AM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 8010

Apparently no report until the end of the month: GENERAL COMMENTS: The precious metals had a very strong day with gold up over $3 on continuing short covering by the funds. Silver was up about 8 cents to test itsf resistance at $5.30 to $5.32 while platinum and palladium were up gently. We have been forecasting a short covering rally in gold for some time and today the markets gave us the chance. Todayfs rise in the precious metals occurred in an environment of a lower dollar and lower equity prices. We have been commenting on how firm the gold market has been the last week or so and today we saw an upside breakout on short covering. The failure of gold to drop while silver was crashing and amidst all the negative news such as depictions of our non-inflationary environment was an excellent signal of this rally. A market truism states that when a market ceases to respond to negative news, a rally is very likely to ensue. One of the best analysts in the business, Mr. James Steele of Refco is still fairly bullish on silver and sees $5.50 as a likely near term target. Mr. Ted Arnold, now with Prudential, looks for a range of $4.75 to $6.00 between now and June for silver prices but comments that he would turn a little more negative should we see a devaluation of the Indian Rupee. This is quite a statement as Mr. Arnold is usually more comfortable being a bear in this market. While much of the press is looking for Berkshire Hathawayfs annual report to be posted on the internet this Saturday, a call to their offices was greeted by the answer that the report will not be put out until the end of the month. Mr. Arnold also commented that he believes that Mr. Buffett still has all of his original holdings in silver. We tend to agree. In discussions with our friends in the business and after some thought, we believe the following: If Berkshire Hathaway has sold all of their silver..prices will rise. If Berkshire Hathaway has sold none of their silver..prices will rise, If Berkshire Hathaway has sold some of their silver..prices should fall.GOLD YESTERDAYfS RECOMMENDATION: Some of the traders who follow our recommendations were able to sell the calendar spread at $10.90. It closed at $11.00 and we recommend staying with this trade. Traders who follow our recommendations were able to buy 3 units of gold at todayfs close of $292.70 basis the April contract. Use a $1.00 stop and look to sell 2/3 of the position at $296.00. Please see above for all comments. RECOMMENDATIONS: none.SILVERYESTERDAYfS RECOMMENDATION: none. Nothing much to say but the technicals and internals are now beginning to signal higher prices. Resistance exists at $5.32 and again at $5.40. I think it is worthwhile buying only a large dip. RECOMMENDATION: Buy May silver at $5.15 with a stop at $5.06.PLATINUM YESTERDAYfS RECOMMENDATION: none. A very quiet day today with slightly higher prices. I would recommend buying only a large dip. RECOMMENDATION: Buy July Platinum at $366 and use a $359 stop. Look to sell near the recent highs at $387. 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: none. No biggie. Not much business occurring and this market is very very thin. Leonard KaplanChief Bullion Dealer