Dear Comrades In Golden Arms,

Because of paper gold, market games can be played. What cannot be done is for paper gold to produce bullion.

The bullies can attack the paper gold market in unison, but they cannot create supply in real bullion with the ease of highly leveraged paper.

The pros depend on the under-financed public to stampede under the pressure of fear of loss.

Believe me, I used to run the locals (pros) all over the lot, and on occasion I got significant paybacks.

However, in the final analysis all we did was add noise to a market that went from $40 to $887.50 Real gold (bullion) is in meagre supply.

What that means is algorithms must lose and fundamentals must rule.

All the violent trading resulting in ever increasing volatility in the gold price is but manic noise inside of a major uptrend that will make me look bad for having been too conservative in my year 2000 price objective of $1650.

If you had lived through a top in the gold market, you would know that without any question whatsoever, this is not it.

Ignore those writers who wish to sell a service by feeding on your fear. Gold is going to and through $1224.10 on its way to $1274-$1278. Following that it is on to $1650 and Armstrong and Alf's numbers.

Respectfully yours,
Jim