from today, 11/06/09 Dear Comrades In Golden Arms, Gold traded above $1100 this morning. The US dollar is not a safe haven regardless of what F-TV tells you. Gold is headed to $1224, $1650 and then on to Alf's numbers.

Alf's numbers follow: Major ONE up from $256 to $1,015 (actually 4 times the $255 low);

Major TWO down from $1015 to $699, say $700 (a decline of 31%);
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);
Major FOUR down from $3,500 to $2,500 (a 29% decline);

Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)

Shorts still attempting to hold down juniors will fail. Majors with huge short of gold derivative losses have endangered their balance sheets, and will take action to repair them which dilutes and represents an asset loss.

I will write up and review the gold share field this weekend.

Regards,
Jim