Dear CIGAs,

Gold roared all the way to the resistance level marked on the chart where short term profit taking developed, allowing the perma bears to begin leaning on the market. When crude oil suddenly took a nose dive, selling pressure intensified pushing the market into the negative column before dip buying surfaced.

We have been mentioning that a battle in gold would ensue as gold approached $1000 and the fact that should gold blow through that region without much resistance, it would signify an acceleration in the deterioration of the US financial system. This first assault on $1000 since early this year was repulsed but technical damage has been minimal at this point.

The bigger disappointment is in the mining share sector. Perhaps we could change the names of some of the mining issues to First Financial Gold Mine, or Federal Mining Association Inc, and then the SEC would get off their asses and crack down on the naked short selling in this sector. Folks - you are witnessing the utter corruption of our financial system where the US government decides to selectively enforce the current laws on the books regarding illegal naked short selling. What is happening is so blatantly corrupt that it rivals the kind of moral and ethical decay that marked ancient Rome as it went into its period of decline. Where in the US constitution does it confer the right upon governmental bureaucracies to subjectively enforce the laws that govern our system? Are we a nation of laws or of men? The answer, it would appear, is that we are no longer a nation of laws but one of men where certain industries or sectors have special rights and privileges conferred upon them while those of the less-fortunate, out of favor with the powers that be, apparently do not enjoy equal treatment under the law.

Here, in 21rst century America, the blind-folded goddess of justice first peeks under her blindfold to see who it is that is standing before her as she dispenses justice! Should she see a natural resource entity or gold mining operation, she calls for the bailiff who promptly has them dragged out from before her tribunal and ignominiously thrown into the street to fend for themselves.

It would seem that all that is left of the once-proud American Eagle is a featherless vulture which consumes the very things necessary to sustain its existence in current form