June 26 2009

Right when we thought we had it, 940 is forced out of our grasp. Although at 11:16 am gold desperately holds onto 940 + pennies, the moral was stolen from us. Gold stocks are not liking this one bit as the HUI index falls a bit, but maintains above its original inverse head and shoulders break point at 350. Its not at all uncommon to watch it retest lows before its real explosion. The index is probably one of my favorite and valuable tools to watch for investor's "mindsets". It's rated based on the strengths of different gold mining companies and there influence on that part of the market. Goldcorp is the most heavily rated company on the index, as well it should be. Followed by Barrick, Anglo Ashanti (that one I can't explain...) and Newmont. Agnico is not far down that list from their and neither is Iamgold, which is a stronger rated stock than even Yamana or Harmony (which is dead last). If you took my advice and bought Iamgold last week or the week before you probably picked it up anywhere from the low 10's to the low 9's and are most likely either in positive territory or very positive territory. This company is an unrealized monster. If you kept up on the news, they purchased 17% of a junior gold company called Oromin. (which was like 14 million shares at .60 a share and is now .90, so they basically turned 9 miliion dollars into about 14 million in one week.) And increased the reserves on both there Esskanna project in Ghana opening next year and the Westwood project in Quebec opening in 3 years. They also increased there expected production from 880,000 oz this year to 920,00, edging closer to the million mark. Some of my colleagues believe that a 100% increase in Agnico Eagles credit limit, and the fact that there flagship mine LaRonde only 2 miles down the road from Iam's Westwood, will cease producing its expected amounts in the near future means a possible buyout or merger between the two. Anything is possible, but don't try to plan mergers. If it happens and you own the stock when it does great, but don't buy it cause you think somethings in the works, cause even if your right (and few ever are, these things always come when you least expect it) It will almost certainly not be on your time scale. Buy I am gold because it will be worth $14 in a matter of weeks, not because you want to make a quick buck on a takeover.

We have 2 more trading days left in June... 1000 is now looking like it won't happen this month, but don't rule anything out. My revised expectations is still very soon July will make the diffrence. The dollar is dying. Commodities always go up in weak currency situations. The more money we print/throw at our problems that we dont have to begin with, the more the buying power of the cash in your pocket decrease. Protect yourself. Gold will outperform all, and oil will be second, although in contrast it won't be much of a close second. Oil you produce and destroy. gold can never be destoyed and will ALWAYS be money.

Tick tock tick tock. Keep the faith and pateince (and positions!) It's comming soon
-J