Agreed Ganalane - projecting silly numbers onto gold is ... silly. The people who arbitrarily pick the low and high points of gold in the 70's and then insist we should be carbon copying that now and be $2000 or $3000, put me off. There is no logic to it at all. You could just as well pick the high and then the low, just as wacky. Same business as the standard broker letter that says you can't sell because you might miss the 10 best up days of the year. Yeah, but you're just as likely to miss the 10 worst down days, or the 10 most middle days. Statistical silly season. I hate that broker letter.

Agreed that Comex markets and futures and derivatives in general are mostly paper and usually don't deliver. However, it makes a difference to me whether there really is a spot commodity that at least sometimes changes hands or gets consumed, or a market that's mostly the whim of traders at any particular time. I do want to know if the coin makers or jewelry makers are in a mood to have metal.

I figure we have to value whether a market has a substantial "real" basis, otherwise KXL could just as well be worth nothing, nor any other gold prospect on earth. Ultimately gold is only worth something because people feel that it is. My engineer buddies still tease me that overall we accomplish nothing - we dig some gold out of a hole in the ground, and then we store it back in another hole in the ground (a vault).

The futures markets - if they're 100% paper, then you just get the Weimar Republic - people shovelling banknotes into their furnaces because it's cheaper than coal. The oil futures recently came down from silly levels because there really were fewer consumers lining up to buy/burn oil in a recession/depression.

The commodities will likely be in a trough for a long time - consumable commodities like base metals and food. Correct me if I'm wrong. Usually small caps (tiny caps in our case) are the last to take off. However, I can see a case for gold if the feeling of instability continues.

I/we are in a tough spot. I had too much money in KXL. However, I really do believe KXL is a bunch of good prospects, very good. The financial tidal wave is still hitting and until the water gurgles back out to sea, the gold market probably won't make any sense. When it does make sense again, KXL will issue drill results and I bet we make multiples on where we are now.

all best / c