Greetings All:

If ANY of the terms I use in the following update are ones you do not understand as completely as you would like, please email me and I will explain them more in detail. It is important that you understand everything I am writing about before Kimber makes its big move, so that when it does make its big move you will be able to see the situation unfolding with the proper perspective. Yes indeed it is still enjoyable for someone with very little knowledge of the game of baseball to watch Albert Pujols hit a home run, but it is much more enjoyable to someone who has a deeper understanding of the game, has played the game and has even made a study of the physics of baseball, the mechanics of the baseball swing, the mental aspects of big-game preparation and even the ocular mechanisms involved in tracking an object moving 90+ miles an hour for sixty feet six inches with an intent to hit it solid for a long distance. In other words, the greater the understanding, the greater the sense of accomplishment when a purpose is fulfilled. This is what I desire for all of you involving Kimber and all of your future investments.

The gold bull market continues. Eric King’s most recent interview with Andrew Maguire (www.kingworldnews.com) revealed two very startling facts. The first was that the the Comex Silver Exchange is leveraged 100 to 1. This means, in simplest terms, that there are paper claims for 100 ounces of silver for every 1 silver ounce they actually have. More important than this, however, is that this information was revealed. This could mean many things, but I believe it is one of the following two options. The first is that the game is almost over, the big money players, working together and in unison, are all set up to profit with a silver rise, so they don’t care anymore. The second, and more believable option in my view, is that these big players have grown so arrogant and so convinced that their silver manipulations are such a good thing for the government, the people, the economy, Christianity, Muslims, everyone in the Universe, that they have started to assume that everyone else will naturally see life the same way. They have started to believe that nothing they say they can hurt themselves with, and that maybe they might just really be the “good guys” after all. This is the type of thinking that creates leaders like Hitler, Mussolini and Stalin. (Do you really think that old Joe Stalin thought of himself as a “bad guy”?) I mean: If God is for you, who can be against you, right?

I think that this is what we saw. These people are only human. Personally, I am not a big believer in conspiracy theories of this size. Why, because people are, by and large, too stupid, too selfish and too unable to cooperate with each other long enough to run a conspiracy this big. I agree with Jim Sinclair that “ the only conspiracy is the conspiracy of stupidity.” Sure there have been some behind the scenes agreements and some shady plots hatched, but I work with very smart people everyday and they have trouble figuring out how to talk their wives into having sex with them on a regular basis. Are you telling me those bozos we hear about on CNBC or the internet every day are responsible for coordinating a fraud this massive for years? Give me a break! At best this is a bunch of little common plots that have melded into something bigger over time and, of course, much less manageable. It’s the east-side crime boss meets the west-side crime boss, not Emperor Palpatine fulfilling some beautifully orchestrated master plan.

If these people doing this manipulation are really this arrogant or this stupid that things like this are starting to show through, it means the whole thing is about to come to an end. How do I know this? It comes from working with a lot and a lot and a lot of dying cancer patients. Almost every one of them gets to the point where the chemotherapy is not working anymore, but the suffering and pain it has caused has become so commonplace to them that they start to feel invincible. This sounds counterintuitive, but it is not. There is no logic behind such thinking. These patients are needing higher and higher does of drugs to achieve lesser and lesser results. Even the effects of actual physical disfigurement, tumors growing out on their breasts, necks or even faces, they somehow seem to start losing awareness involving. These people take on the attitude of immortality. Nothing can defeat them. This means that they are about to die.

Manipulation of the precious metals markets is getting near the end game. When the game ends, the dollar is going to suffer tremendously, and alternatives to the dollar are going to be the big gainers. Gold and silver are at the top of that list. When foreign currencies collapse or have collapsed in the past, frightened Argentineans or Romanians or Mexicans would traditionally rush into the U.S. Dollar. The problem now is that the dollar is actually in danger. There is nowhere else to go. A basket of currencies based on backing from China, Russia and the Arabs? Are the people advocating this as a possible outcome serious? In international finance it’s all about “What’s in it for me.” People in Indiana don’t even want to help out people in California, and they speak the same language and have a common heritage. Are you telling me that the Russians and Chinese and Arabs are all going to sit down and handle this? Based on what historical precedent! No, my friends, the gold standard is going to return whether people like the idea or not. Gold is rising, and nothing short of the return of Jesus is going to stop it. There is no reason why Jesus’ return would stop it, however, because, “honest weights and measures” and not the policies of Goldman-Sachs, are one thing that He has always and will always continue to approve of. Ripping people off with inflationary policies is not.

So gold will continue to trend up and the dollar will continue to trend down. Every inflationary period throughout human history ends with a deflationary crash. Every single one. Will this happen here? Yes. Will there be hyperinflation first. This is uncertain. Deflation is a natural phenomenon, where the necessary collapse of the money supply brings prices back in line with reality and enables human society to continue to advance and prosper. It allows future generations to purchase and own property and goods taken out of range by long-standing, government-sponsored inflationary policies. It is a resetting of the scales that must happen eventually. How do I know this. It always has. Always! Not just 999 out of 1000 times, but always. Hyperinflation, on the other hand is a man-made phenomenon. It might happen or it might not. Ever increasing the money supply, and the present policies of the US leaders tend to follow a familiar historical pattern that almost ensures hyperinflation, but no one can be sure.

What one can be sure of is that if either hyperinflation ensues, followed by an inevitable deflationary crash or a massive credit collapse takes us straight to a deflationary collapse, then gold and silver will increase in value tremendously. When I talk of inevitable results, this is the only one I can give you. Hyperinflation could take the stock market to stratospheric levels on a nominal basis. Deflation could crush it to 10% of where it is today. How this will unfold, I don’t know. My goal isn’t to predict the future, it’s to make myself and you dough and to learn something in the process. Gold and silver must rise. This is inevitable, and will be looked back upon as inevitable years from now although for most today a gold price of $5000 and a silver price of $200 is essentially unimaginable. Have you ever had the chance to listen to a lecture given by a Jew who survived the Warsaw Ghetto. I have. “Unimaginable” to “Inevitable” is a shift in thinking that such a person can comprehend with very little difficulty, even if most economic pundits in our “modern world” cannot.

Now, about Kimber. Kimber has started drilling on the Perricones property. My personal investigations and research tell me that there are huge silver reserves there that you all and the rest of the investing world are going to start hearing about in the next few months. Gordon is playing everything close to the vest, as is his style. Some of you may not be aware, but a major financial services company bought $2,000,000 worth of Kimber Warrrants a few weeks ago above the market price. This is highly significant. The identity of this company remains obscure, but some guesses can be made after a little bit of detective work. Just go to www.msn.com and look at large institutional holders of Kimber. That influx added the previous balance to put $6.3 million dollars in Kimber’s bank account. Kimber now not only has some very powerful backers, but a lot of money to use to continue to set the company up, through drilling projects, for a lucrative sale.

Remember to keep in mind that as gold rises, Kimber’s costs stay essentially fixed, or close to fixed relative to the gold price rise, so the value of the company continues to be highly leveraged to the gold price.

All the best, Bull