Dear Friends,

I hear from so many of you. I am the focus of so many emails from you. My fax machine goes through more paper and toner than you could ever imagine.

Your fear, emotions and confusion communicate to me in more ways than you know.

The gold community had very little to do with gold recently crossing $1000. China stands right below this level in the cash market as a ready buyer.

The conditions moving the dollar are so very different from what was only a few months ago. Economic conditions are no longer improving which opens the possibility of a new acceleration on the downside.

You are fearful because of the proliferation of analysis concerning the massive short position of the commercial dealers in gold and silver. They do not have a 100% record of success.

You are fearful due to the proliferation of a flyer that you received in the mail saying that Elliot Wave calls for a decline in the price of gold and a rally will occur in the US dollar.

You are fearful because all media is unfriendly towards gold and friendly towards the dollar.

So many are asking for my help in an almost plaintive manner.

1. Gold will trade at $1224, $1650 and then on to Alf Field’s numbers.
2. The US dollar will go significantly lower for reasons reviewed this weekend here.
3. Companies that own and produce a commodity will benefit from the price of a commodity that is about to rise to historic prices regardless of the actions of present shorts. In this case the commodity is honest money – gold.
4. Do not carry one penny of margin on any silver or gold position. Volatility has only one way to go and that is up.
5. Stay totally away from trading futures.
6. I do not give short term trading instructions because this is not a tip sheet. This is a site dedicated to taking you through the sea of opposition to your self-protection.

Respectfully yours,
Jim