Dear CIGAs,

Friday is a close in time that was blatantly concerning as many let their discipline down and listened to their emotions.

Dumping gold, running the dollar up and dumping the euro on a BS housing report was total idiocy. Housing sales will be boosted by increasing foreclosures as a foreclosure is a title change and statistically paints a totally skewed picture. God help us if housing sales are grossly negative because then they are practically non existent by comparison.

The bottom line is that $1050 is coming much sooner that any rational bull on gold believes. I see some COT action at $880-$890, then again at $1050, but $1650 is in the bag.

The shorts of gold shares see the new interest coming in.

The Formula on great success in gold shares is:

1. Legitimate management measured inversely by the size of their insider stock options.
2. Serious asset as the public is starting to recognize gold shares are asset based.
3. Gold at $1050 and then at $1650.
4. Taking delivery of your certificates for the purpose of eliminating as many financial intermediaries as possible. Financial agents are wise as the former largest names in the finance industry rolls badly over the derivative meltdown. If the Jolly Green Giants falls what do you think will happen to the peanut venders also involved?

The colliery benefit to taking delivery is the already invested shareholder moves back into the action by creating a secondary bullish impact.

Please do not again fall for pre-packed economic statistics or survey numbers that try to convince you the economic rollover is rolling back up. This is a serious economic situation in the West that will via the Formula grasp the dollar by the neck in a death grip. Meanwhile Pakistan represents the "Sum of All Fears."

The game in Pakistan is not for the existing nukes and delivery systems, although they would be welcome. What is in the cross hairs of our extremist brothers is the knowledge of how to make these items.

As all roads once lead to Rome, all roads are now headed for a convergence in 2011. If you sell your insurance (Gold) you will find yourself naked, out in the cold and having known it all along, mad as hell.

If you must trade then the 1/3 to 2/3 strategy has not been bad. Gold is being pulled by $887.50 and thereafter by $1050. Gold has shown a propensity to grab the Angels, go smartly by it and then try to return to the Angel below the recent accomplishment. Don't bank on that as it has been the shorts that ran that, but they are now bloody and headed for a terminal point very soon.