Dear CIGAs,

I understand many of your frustrations that with a few exceptions the last year at best has been a time of treading water or disappointment.

I have received many communications of despair from good folk. Much of this has been caused by precious metals shareholder becoming so TA evolved in every minute to minute TA development that they have been had and continue to be had by the hedge funds capable of painting any chart they want. Basically you have been in many cases had by your own hands.

Selling 1/3 on strength and buying back 1/3 on weakness, TA guided, is a totally different approach than becoming a TA junkie and injuring your golden goose, delaying the laying of the golden price.

All you minute to minute TA gold people have screwed yourselves and your compatriots while lining the pockets of the hedge fund operators.

Have I not said many, many times over the years since we first met that the "Trade everything all the time" guys in the gold sector do great, but temporary, harm?

Many of you have learned TA and forgot fundamentals, therefore getting it totally ass backwards. That is the only problem in precious metals shares with only a few exceptions. Those exceptions are the companies like ABX that the hedge and other funds are long and painting the charts bullish almost all the time. Eventually the hedge funds will, when you all stop being their patsy, turn bullish on the majority of gold shares taking them to heights you clearly do not expect. As long as you play minute to minute glued to the screens you prevent that because you are unknowingly and unwillingly their agents. They say I cannot herd cats. I say cats are smart, no herding is necessary and they, that is the many you, will stop being their agents.

My answer has always been the same.

1. No commodity based stock, in good fundamental shape on the ground, can be held back forever from following the commodity price upon which it is based, eventually providing leverage to the commodity price.
2. Liquidate if you have necessity, but do not meet the necessity by borrowing on your position as that is defined as margin.
3. Liquidate if the emotion of fear makes the investment too much of a pain, but know who has done this to you. It is the trade everything all the time precious metals gang and the hedge funds who pull them around by the nose.