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Midas


November 18 - Gold $396.70 up $5.90 - Silver $5.35 up 13 cents

Extraordinary!!!

"Continuous effort, not strength or intelligence, is the key to unlocking our potential."
-- Liane Cardes

I have followed and traded the commodities markets since 1975. Without a doubt, today was one of the most extraordinary days I have seen in all that time. I say so because of the way gold and silver reversed course so quickly after yesterday. NEVER have I seen gold, and or silver, do such a reversal in one day. Not one time in the last 7 years. Maybe a few days later gold has rallied back limply after a bashing like yesterday, but it never roared back like this the very next day. Always, gold has needed TIME to recover - probably because The Gold Cartel was always in control. Not for much longer.

The scene was set early last evening as gold rallied as much as $2 in Asian trading. It came in higher in the US and never looked back. The catalyst today was The Stalker and a VERY weak dollar. The dollar was trounced, falling 1.26 to 90.41. The euro soared to 119.39, up a whopping 1.82. Meanwhile, the physical gold market was very firm.

The swooning US dollar - UGLY!
http://futures.tradingcharts.com/chart/US/C3

A stunner:

Yesterday’s gold open interest ROSE, instead of liquidating like most of us thought it would. That also would have been the norm. Instead it rose 707 contracts to 294,557. Today’s dramatic surge suggests it is the shorts who have the weak hands. It is hard for me to imagine gold not clearing $400 in the next few days. Not only is the physical gold market in good shape, gold has a wind at its back with:

*the dollar caving in
*Oil at $33.28 per barrel, up $1.55
*the stock market finally rolling over

OK, the funds were massive sellers yesterday. That had to be liquidation. So who were the buyers? The Stalker and friends!!!! Will they pounce on gold in the overseas market this evening and catch the cabal sleeping? Time to overrun their night patrol.

Morgan Stanley was The Gold Cartel member who kept gold capped around $397 today. Word is they have a significant option position at $400 and above. They are very short. Please spread the word everywhere you can. It’s about time they are carried out on GATA’s stretcher.

While today’s action was exhilarating, I am sick and tired of the $6 rule. Groundhog Day is a drag. Maybe when we talk out $400, The Gold Cartel will have to give up on that one.

Stiff Morgan, stiff Morgan, stiff Morgan!!!!

Second highest gold close in 7 ½ years:
http://futures.tradingcharts.com/chart/GD/C3

Silver has to be the cheapest commodity going. It is SO undervalued. Gold left a small gap today, but there is none silver to fill. Good news. Silver tends to fill gaps more than gold does. Can’t see silver staying below $6 too much longer.

Silver did liquidate yesterday with the open interest falling 2707 contracts to 109,055.

Still five days left before the DEC options expire. There are hundreds of thousands exposed written call positions above the market. Will the criminals be able to keep gold below $400 before they go off the board? Hard to say. We saw what they were capable of doing yesterday. My guess is they are in DEEP trouble!



The John Brimelow Report

Tuesday, November 18, 2003


Indian ex duty premiums: AM $4.58, PM $5.66, with world gold at $393 and $391.40. Questionable, and adequate, for legal imports. This is basis Bombay. The picture in India is mixed, with some cities reporting prices permitting legal imports and others not. Given the recent rise in world gold, this is an impressive performance, and bad news for Bears.

For what it is worth, the Shanghai Gold Exchange reports gold prices today which have moved back to small premiums over world gold. One of the major state Banks in China started offering retail gold to the public today for the first time. See

http://sg.biz.yahoo.com/031118/16/3fzaq.html

For once, TOCOM displayed some interest in gold, which of course at the opening was $6 lower than Monday’s Tokyo close and over $8 below the high. Mitsubishi reports buying by the public; open interest rose the equivalent of 3,003 Comex lots on volume equal to 43,343 Comex lots (down 33% from Monday’s abnormally heavy trade). The active contract closed down 24 yen and world gold went out at $393, up $2.25 from NY’s last. Mitsubishi says

"Constant overseas dealers’ Loco Ldn Gold selling were absorbed by… Tocom."

So the immense selling effort continues. Gold in NY yesterday traded a huge 92,828 lots, but open interest actually rose 207 lots, suggesting that there was heavy short selling.

This is certainly what today’s violent reversal suggests. Comex estimates 25,000 contracts traded between 10 & 11 am, with gold rising from $392 to $394, about the highest mid-day volume I can recall.

The ECB today week reported a 10 tonne sale last week - double the recent pace in the face of gold’s rise, which it did not stop. The web site www.thebulliondesk.com reports extremely heavy traffic and www.lemetropolecafe.com an unusual spurt of new subscribers. The defenders of $400 look likely to be hard pressed.

JB

CARTEL CAPITULATION WATCH

The DOW (9624, down 87) and the DOG (1782, down 28) finally closed on a sour note. With the dollar so weak, you have to wonder how long it will take before the sell-off becomes a rout. 9700 and 1900 come become relics of the past.

The reason for the dollar’s dumping:

Nov. 18 (Bloomberg) -- The dollar had its biggest decline against the euro in two months in New York trading after a government report showed net foreign purchases of U.S. securities in September fell to the lowest in five years.
A drop in the amount of stocks and bonds bought by foreigners may make it difficult for the U.S. to finance the deficit in its current account, the broadest measure of trade and investment. The Treasury Department said foreigners bought a net $4.19 billion in September, down from $49.9 billion in August and the smallest since $1.17 billion in September 1998.
``It's the hardest evidence yet the U.S. current account deficit has finally become unsustainable and the foreign appetite for U.S. securities has finally fallen short,'' said Michael Woolfolk, a currency strategist at the Bank of New York, the third-largest New York-based bank. There is ``a dependence on increasing inflows just to keep the dollar steady.''

-END-

Big news in late:

DJ. Citibank Closes All Long Dollar Positions As Unit Plunges

< NEW YORK (Dow Jones)--Citibank, one of the largest traders in global foreign exchange markets and biggest dollar bulls, closed all its existing long dollar positions Tuesday.

The move, on the day the dollar plunged to record lows against the euro, is significant in that the dollar's slide has forced one of the most aggressive dollar bulls in the market to temper its optimism toward the currency.

In a research note, Citibank currency analysts cite three specific reasons: the U.S. decision Tuesday to impose temporary quotas on certain textile imports from China, the dollar's failure to respond to positive U.S. economic data and the breakdown of key technical levels such as dollar index support at 90.56.

Citibank, a unit of Citigroup Inc. (C), retains a bullish outlook for the dollar in the medium term, and will look"for more advantageous entry levels over coming weeks."


But the bank posted 1.5% losses in closing out its long dollar/Swiss position at CHF1.2945, losses of 2% in closing its short euro/dollar position at $1.1940, and losses of 0.7% in closing its long dollar/yen position at Y108.04.

Tuesday, the euro surged to a record high of $1.1960, the dollar fell to a five-month low of CHF1.2931 and dipped below Y108.00, within a whisker of new three-year lows.

-By Jamie McGeever, Dow Jones Newswires; 201 938-2096;
jamie.mcgeever@dowjones.com

Houston’s Dan Norcini notes:

Bill:
Without Citi buying the dollar Bill, a major obstacle in the way of higher gold prices has been removed. The floor of support under the dollar has given way and any dollar rallies from here on out can be dismissed for what they are - weak-kneed, short-lived and suspect. Foreigners seeing the collapsing dollar are going to think twice about buying U.S. paper denominated assets, whether those be bonds, notes or stocks. They simply canot continue putting their reserves into a unit that is devaluing at this pace. Euroland is not much better but all that can be said about it is that it is not the U.S.. Japan is showing possible signs of improvement which has been attracting money flows of late and thus the reason for the stronger yen. Still, the BOJ has been forced to go the way of the printing press as well in an attempt to inject some life into its moribund economy. Gold is therefore rapidly becoming THE CURRENCY of choice in this environment.
Best,
Dan

GATA’s Mike Bolser:

Hi Bill:
Yesterday November 17, 2003 the DOW turned intra day back upwards at 9640, 10 points below the level set by the repo metric's prediction:-). The next high will be 200 points above its then 30-day moving average. Draw your channels with caution and be ready for anything.

Today, the Fed added $4.75 Billion in repurchase agreements which brought the pool total to $32.03 Billion. This level is again a bit over the pool's moving average and has turned the 30-day ma upwards. We will need another day or so the confirm the Fed's interventional intentions: up, steady or down. My guess is up again along the long-standing up-slope.

Tomorrow we will see the level of the Fed's announced (today) coupon pass.

Circling the wagons

As the US economy fades away, the Fed is attempting to manage the most visible financial indexes such as the DOW, 30-year bond (through Japanese buying and"policy puts"), the precious metals and of course oil.

The Bank for International Settlements (BIS) has reported recently it's"other" category of derivatives. This category includes petroleum and the forwards and swaps section (involving a change of title for the contract item) is up to $458 Billion from $217 in December 2001. Its clear that stress is building in oil as well as gold and silver. Unlike central bank gold, there is hardly any above ground oil reserves. The 57 day supply of the Strategic Petroleum Reserve (SPR) is a tempting source of forward sales to quell prices from a rising world and especially Chinese demand. How much of it remains?

The policy of intervention has so far largely depended upon US partners willing to dilute their home currency or empty their vaults of gold. Japan has printed (or inflated if you prefer) it currency by 21% in the last 12 months and empirical results suggest that the Bundesbank has sold most of its bullion for West Point Treasury depository I.O.Us. The thinking seems to be that if the Japanese currency stays in treasuries it really isn't inflation and if officials try real hard, the empty German vaults really do still have gold in them. But the bloated overseas treasuries represent an increasingly serious financial threat of repatriation dependent only upon good will to sustain the imbalance and the gold can never be replaced at current prices.

Exogenous events have an unexpected way of upsetting the best laid plans and there seems to be a growing collection of potential bad days ahead for the Fed. Once started, these kinds of events are irreversible.
Mike

Chuck checks in:

I guess you'll have to use. Some market. If you look at the different golds, they are in varying positions of an exponential move. I am still certain that the type of person who would buy them is scared out of the market by the sell off last July and by the conservative gold advisors.

The close on the market indicates everything is getting away from the riggers. It's all related. Good for you. You have stood firmly against the wind here. Chuck

From the silver guru, Dave Morgan last evening:

Bill,
Reading your Midas tonight, and thought I would share some thoughts with you. You asked the question is someone planning on taking delivery on large amounts of silver? As you most likely know, there has been an increase in silver on the Comex this month, approximately 12 million ounces. The registered category now is equal to the eligible category. Some think this is a sign of how much silver is really out there, but my view is different here's why...

The open interest in CALLS for the $5.00 strike and lower is over 8500. That means at five dollars or lower there is the ability of 8500 options being exercised into futures positions, 8500 futures positions is equal to 42.5 million ounces of silver. The total registered category is now at sixty million ounces. This is just options!! These are longs.

Look at the futures open interest on December silver and it is over 74,000 contracts. Half long half short, (not really do to spread trading) but 1/2 would be 37,000 contracts, so to be very conservative on my part say half of that open interest is simply held as a long futures positions. This would be about 20,000 contracts or equal to 100 million ounces of silver. Much more than the registered amount that could be used as delivery silver, and almost as much as the entire Comex inventory.

As we both know, futures activity almost always ends in paper, however if just 5% of the open contracts were held past first notice day and then"stood for delivery" at the end of December, it could be a very bright Christmas for silver.

The open interest in options between $5.00 and $5.25 is an additional 4400. This is equivalent to another 20 million ounces of silver. The amount of option activity is large very large when compared to the amount of real silver in the delivery category (registered).

Expect some further excitement this week in both the metals. Keep you sources working to find out if any of the options positions are exercised into futures positions or merely settled for cash. This would be a significant clue that someone is playing for keeps. Will keep close to my sources as well and if anything"unusual" is taking place, it will be sent to you.

Sincerely,

David Morgan
For www.Silver-Investor.com

Tiger Financial News Network
David Morgan of the Silver Investor will be on the Tom O’Brien Show
at 5:20 (EST) on 11/20/2003 (Thursday).
Call in Live 800-927-6648
You can listen to you on the show live from, www.tfnn.com,
or via the archive section of www.tfnn.com 24 hours a day.

Will the DOW follow the Nikkei down? Adrian's Nikkei/DOW chart:




View from Down Under
Its been a while since I put some thoughts on paper on my fundamental view of the economy/markets... just my opinion so bin it if you dont want to know about it.

Real Assets/Commodities(especially Gold and Silver as the ultimate store of wealth) are, in my opinion, the primary sector for investment for the coming decade. Everything from Copper to Cocoa should see dramatic increases in price in the medium term. It is my contention that the"paper" and service economy are extremely overvalued due to excessive optimism of the"economic recovery". Whilst this optimistic view and apparent economic recovery has been in progress the last 6-12 months the dollar has dropped by 20% against a wide range of currencies. As I write, the Euro makes a new high..or more correctly the Dollar falls to a new Low....but equities just dont get it that this is not a good development....

The current rally in equities, I believe is optimistic at best and the real risk is a sudden reversal in sentiment and speedy retracement of 15% or so, just as we have seen in the Nikkei this past few weeks. Momentum has stalled since July and although we are back at the lofty 10,000 heights, it must be remembered that the Nikkei has fallen 75% in the past 13 years but has some remarkable rallies of over 25% on 4 occasions. And for those who say"This time its different"...I agree..It started from another new low of about 7600!!!.. and thats a long way from 41,000 in '89. This is not the time for a passive buy and hold strategy in equities as there will be significant volatility in the US and Europe and as such one should be actively managing risk. I am loathe to be long equities in the US unless there is underlying primary production.

Tech stocks are in no better shape than general equities. Nasdaq has rallied hardest so the risk is if falls furthest.

The latest GDP number of +7.2%, when dissected, are actually sadly misrepresented. On the face value it all looks nice but take out Government spending, Iraq War associated costs and the $400 family allowance give-away in July, we would see economic growth at just over 3% (and thats with the most accommodative monetary policy in the last squillion years).

Unemployment is a serious issue. Unemployed people dont spend, thus goes Greenspans primary driver of growth. New jobs are at lower pay or shorter hours so the recent drop in unemployed is quite misleading. The consumption economy is in some real danger.

Inflation, although stated as only 2% year on year in the US, is rife. CPI as a measure of inflation is a farce. PPI at a annualised rate of over 7% will certainly send prices much higher from foodstuffs to metals. Note the increase in the CRB for some idea of the increases in input costs. Crude oil above $30 isnt good for the US which consumes more than 30% of the worlds oil. As the dollar declines, the worlds oil producers will want the same purchasing power and so should rise accordingly, or will they move to the Euro, or worse still for the economy, GOLD? I have stated repeatedly that I believe we will experience serious inflation of what people"need" and deflation of what people"want".

Bonds do not reflect the underlying inflationary policies of the Fed. A 10 year US Govt bond yielding 4.2% in this inflationary environment is just asking for trouble. Capital will be wiped out for local investors once the inflation genie (which is already out of the bottle)makes itself blatantly obvious. Offshore bond investors who are currently financing the US deficit economy could well be"double-whammied" with falling US dollar compounding the capital loss from rising bond yields. The bond market will remain highly volatile.

The global fiat currency system has led to a race to devalue by the central bankers of the world. Japan, Europe and a myriad of other countries want lower exchange rates to boost their exports but the dollar is down nearly 50% versus the Euro in the past 3 years with most of that fall in the past 18 months. There is a real risk that there are further significant falls ahead and to not be prepared for such is, in my opinion, speculating against the fundamentals. The US Dollar, which as Fed Governor Bernanke stated can be printed in unlimited quantity at no cost(and is being!!),is in some danger of imploding as the"Reserve Currency" of the world.

The unprecedented large US Government deficits (the world is required to fund over $2 billion a day for the dollar to remain stable),future unfunded liabilities of some $44 Trillion, massive Government and consumer debt of currently around $30 Trillion and the abysmal savings rate of the US population do not bode well for the dollar. And dont forget the property bubble that has allowed the consumer to suck equity out of ones property to finance their consumption and lifestyle, or the attempted reflation of the equity bubble by the lax monetary stance of the Fed.

And so we come to what I believe to be the ultimate investment class for the current environment...GOLD AND SILVER. These little puppies have behaved pretty nicely the past 18 months after two decades of hibernation. Many will suggest that the two metals have gone far enough and that there's not much more upside. Sadly misguided Im afraid. There are structural issues in the gold and silver markets that make them the most explosive investments, and safest, that I can find in the world. Yep, even better than an IOU from the US Government that many know as a Bond. Physical gold and silver are the only non-defaultable financial instruments available. You either own it or you dont. I'm not going to go into all the why's and wherefores about allocated versus unallocated metal or the danger of leased metal or the massive supply demand deficits in silver or the massive short positions in both futures and OTC markets or the idiotic behaviour of the worlds central banks the past 8 years or so in disposing of their meta
l in return for US Govt IOU's...see Bank of England, Canada, Netherlands, Portugal, Swiss, German and to prove Im not biased, Australia(who should know better) amongst others....

I fully expect we shall see a break through of the psychologically important $400 level in the coming weeks with some pretty good pullbacks that will present themselves as incredible buying opportunities before we march SIGNIFICANTLY higher over the coming decade. By significantly higher I don’t mean 10 or 20% higher.... get serious, there's just not that much physical metal available!

Therefore I see incredible opportunity in commodity equities, especially in the two noble metals, which should make the tech boom look like the proverbial teddy bears picnic. The technology sector is/was multiples larger than the whole metals sector, so we will see dynamic moves when the flood of recently printed dollars and debt rush at this sector. Already some gold/silver stocks have moved 100-500% or more and I honestly believe we havent seen the start of it. I cant name many of my mates who have bought a gold stock, and I've been screaming at them for 3 years!!!... We have seen significant increase and acceptance of our commodity strategy from professional investors in the past 6 weeks with a distinct lack of interest or indifference from same in the prior year. Maybe the alarm bells are ringing in some minds...just wait till Mr and Mrs Bloggs wake up!!!(but that is still some time off as the general populace still have the late 90's mentality, coz we're back on the great equity bull ride, just ask anyon
e on Wall Street)!

In summary, I expect we will see increasing volatility in ALL markets, with the swings becoming larger and more violent requiring short term risk management. The trend is in for rising commodities, rising currencies versus US dollar and rising bond yields. There is serious reversal risk in the equities markets globally. Not for the faint hearted.

Lastly, the Rugby World Cup final on Saturday night, to be fought out by England and Australia, will be the biggest party seen in Sydney since the Olympics a few years back. Australia (The Wallabies) are the underdogs but 5 million hometown supporters will be going crazy, should just be able to prevail. BUT with 80,000 Pommies (Englishmen) in Sydney supporting the English team there wont be many pubs left with beer on Sunday... Hopefully they'll be crying in their beers come 10pm Saturday night.

Wallabies by 6 points.

Laurie McGuirk
Endeavour Funds Management Limited
Sydney, Australia
(612)9955 9781

Laurie is one smart Aussie!

A while ago I mentioned a lady I know up in Maine who is a Precious Metals Broker. Her name is Dawn Marie Clark and she works out of her home in Belfast.
I recommend that you give her a call if you are looking to make a purchase. She has been at it for a while and will give you good service and a decent price.

You can reach her at:

Coastal Coins
118 Congress St
Belfast, Me 04915

207-338-0303
dawnakasunny@yahoo.com

Example of more Cabal allies:

Dear Bill, Another example of the vast forces trying to suppress Gold. The Vanguard Group is one of the very largest Mutual Funds groups and incredibly they do not have a Gold Fund except one that was closed a year and a half ago. Below is Vanguard's convoluted response to my complaint.

" The Vanguard Precious Metals fund was closed on June 28, 2002. Investments into new accounts and additional investments into existing accounts are not being accepted. The decision to close the Fund reflects the collective decision of the Fund's board of Trustees, M&G Investment Management, and Vanguard to protect the interest of the Funds long-term shareholders by maintaining the Fund's distinctive character over time. The strongest returns in equities in 2002 came from precious metals stocks resulting in significant cash flows into our Precious Metals Fund. Compound the challenge of investing cash inflows into the ongoing consolidation within the industry. --- At this time the Fund's Board of Trustees have not decided when/if the Fund will be re-opened. -- In addition Vanguard has no intentions of opening another gold fund at this time."

These Vanguard people are either incompetent or part of the Cabal that does not want the gold price to go up reflecting demand from investors. I, along with many others are taking money out of Vanguard to invest in other more deserving Funds.
Best Regards, Harry aka Deadeye

Hi Bill,
This is a real blockbuster. I recently purchased a copy of the book Why the Markets Went Crazy: And What it Means for Investors. This book is by an English economist named Tim Lee. I read one of his pieces some where on the web within the last year; that is how I found out about the book.

He devotes about half a chapter to explaining the role that the gold price played in keeping the bubble inflated. He goes through the role that gold plays as an inflation signal, the central bank selling designed to have maximum impact on the price, the bullion leasing scam, the obvious manipulation, and the fact that a rise in gold prices would bankrupt a number of the bullion banks. He mentions GATA and summarizes the findings of GATA in a fair and accurate manner. Then he says that he thinks that GATA's views are perhaps too extreme (after having basically agreed with all of GATA's main points).

The book is published by Palgrave Macmillan, a reasonably well known, if somewhat academic publisher.

You can order the book at:

http://www.amazon.co.uk/exec/obidos/ASIN/1403918694/qid=1069131526/sr=1-3/ref=sr_1_0_3/202-5497407-5169406

I think that other people on the Cafe or on that GATA email list might like to know about this book. Perhaps some English cafe members know more about this Tim Lee.
Regards,
R B

Vice President of Habib Bank ( Pakistan ) thinks gold price is being suppressed


Hi Bill,
My day job is working in retail selling childrens clothing at my family business.

Today I called one of my suppliers and he had just gotten back from a holiday in Fiji. He told me that he was sitting in economy class on the plane, and that when he started talking to the person sitting next to him, he was surprised to learn that he was the vice president of a bank in Pakistan, called Habib bank.( I hadn't ever heard of this bank, but I just checked it out on the internet, and it looks pretty big ) http://www.habibbankltd.com/html/about_hbl.htm

The vice president said that he thought the price of gold was being suppressed.

( This fits with what you say about the eastern countries knowing the true gold story )

He also said that the tensions between India and Pakistan were good for the arms trade and benificial to each economy. Another thing mentioned was that the common Indians needed someone or thing to unite against, for if they figured out about the corruption within India, there would be much unrest.

( Sounding Familiar? )

He also said something along the lines that for interest rates they could be giving out 15%, but that there was no point and there was some sort of pressure or obligation to conform when everyone else was only giving out 5%.

I hope that was of interest.
Thanks
C S


18 Nov 12:00

Bank of China Opens Gold Trade to Individuals
ASIA PULSE - The Bank of China, one of the four big state banks of China, today opened gold trade services to Chinese individuals here. Individual investors can now trade the precious metal at 95 business outlets of the BOC Shanghai Branch, or dial 95566 to make transactions or on-line trading at www.sh.bank-of-china.com. To encourage more individuals to participate in the gold trade, the BOC set 10 grams of gold as the lower limit for trade...-END-

Two Gold Cartel members in hot water. What else is new?

Tuesday November 18, 2:01 am ET

NEW YORK (Reuters) - Federal regulators are investigating the roles Citigroup Inc., Morgan Stanley and other Wall Street firms played in Freddie Mac's accounting scandal, The Wall Street Journal said on Tuesday.

A spokeswoman for the Office of Federal Housing Enterprise Oversight told the paper that investigators are reviewing the actions of the companies. The regulator is examining whether Wall Street firms aided the U.S. mortgage finance company's misdeeds by arranging deals that allowed Freddie to hide big gains and smooth out its earnings, the paper reported.

-EDN-

Where's the Golden Whistle Blower?

As we saw from the price action of gold yesterday, there continue to be what appears to be high jinx going on behind the scene of a type that are probably at or above the level of crookedness in the mutual funds. The problem that folks like www.gata.org have had is that they've never need able to find the"smoking gun" kind of evidence to force a major criminal conviction of the gold manipulators. What's needed is someone who can point out specifically how the manipulation is affected, who makes the decisions, and who executes the trades, with specific examples of what date and so forth. On Monday, Jim Sinclair put an offer on the table that should tempt any would-be whistle blower: $50,000 in gold coins for turning over the real evidence. Jim's offer at http://www.jsmineset.com/home.asp.

The gold shares were ON FIRE! The XAU leaped 4.62 to 104.64, while the HUI soared 13.36 to 235.22. YES!

HUI
http://bigcharts.marketwatch.com/qu...o_symb=hui&freq=1&time=8

What strikes me the most is the public is not in the gold share market yet. I can tell from the Café Sentiment Indicator, which might be all the way up to 5.5 now. Unreal. Investors seem comatose, like deer frozen in a car’s oncoming headlights. They don’t know anything about the gold market because the so-called experts, the bullion dealer investment houses in New York, are either short, or scared to tell investors the truth. Thus, much of the public will hang on to their buy and hold stock positions and shun gold until they can’t take it any more. Good grief!

However, that should change somewhat as gold takes out $400. There is no way The Cartel can keep investment excitement from sprouting up all over the world. The business headlines alone will draw in a crowd.

What a day! Randgold ($27.97, up $2.77 or 11%) led the HUI, with Golden Star Resources a close second at $6.58, up 61 cents or 10.2%. My initial objective of $21 per share is coming closer and closer.

My third largest position, J-Pacific Gold, closed at 70 cents Cdn., a 52-week high. Good for my friend Nick Ferris. One of my other large holdings, ECU Silver, has risen from the dead. It closed at 23 ½ cents Cdn, a multi-year high. Hail Michel Roy!

GATA supporter X-Cal Resources jumped to 83 cents Cdn., up 8 cents or 10.67 percent.

Jeepers creepers, Samex rocketed up 28 cents (30%) to $1.21.

Now here’s the fun part. As stated above, the general investing public still can’t spell gold yet. When they learn how, stocks are going to run like Samex did today ALL THE TIME as gold moves up towards $1,000 per ounce. The market is just too small to handle a huge infusion of capital.

Long time vet Café members know I have been jumping up and down for years spouting that it is going to be like the Wild West when this thing blows. What fun! Yee hah! This is going to be the biggest gold rush in history. The gold volcano is going to blow sky high. Congrats to all of you who hung in there all these crummy Gold Cartel years. One thing for sure:

GATA BE IN IT TO WIN IT!

MIDAS


PS: Jetzt geh ich nochmals ins Bett