Hi Jim,

I know how busy you are so I won’t be offended if I don’t hear back. About two years ago I decided to rebalance my portfolio from 2/3 mining stock to 1/3 stock to physical. Lately I am considering abandoning stock altogether in favor of physical. My main concern is that the dollar, ultimately doomed, is running out of time. I would hate to get stuck with a beeellion dollars of worthless paper. I have been very patient for ten years, but lately it appears to me that the freaks will be able to run out the clock. Would you recommend hanging in until the end of the "Summer of Hell," or should I begin liquidation now? As they say "don’t panic unless you have to, then be the first!"

Thanks for everything. You are in my prayers. We are ALL in my prayers.

CIGA Doug

Dear Doug,

The "Summer of Hell" as you put it might just be hell for the shorts. I can only say that this is certainly not the time to do that if the companies you hold are in fact sound.

The "Sell in May and go away" glib cliché might be very costly this time around.

I do not think Armstrong, Alf and I are all wrong at once. As I see it, we are extremely close to the next major move in gold move. We did look for pressure coming into the third week of June and for all practical purposes are just there.

Today was an exercise in doing everything possible to put into people’s mind just what you are thinking by the shorts pounding bids for this exact purpose.

If you care to sell into good strength in time to relieve fear that is another subject. If your emotions are driving you to suffering why not stop quoting the situations and wait at least one (preferably two) weeks. This is my most sincere and heartfelt advice I can offer you.

I am not devoid of understanding what pain is emotionally. I simply see it as a tool of the destroyers which is getting to you as a representative of the non-professional public.

Most sincerely,
Jim