Abet Chichi2

[bob3]

Gold is Accelerating
By Victor Hugo
September 19, 2003

http://www.HugoCapital.com

We have for some weeks being calling a gold run accelerating from near 19th September - and as I type, Gold Spot is above $380.00 with superb trend and cycle signature profile corroborating for prospects to the $413 - $435 zone by Christmas or early new year.
More corroboration comes from the US$ being sold in favour of the JYen ( even with Japan's own problems) as investors accelerate their shift from US assets to elsewhere, including to some gold. The huge short positions and loans of bullion by institutions and banks worldwide, with inability of mine production to fill the accelerating demand gap - can only result in a squeeze on the gold price such as last seen in the 1970's. Especially when the implications of the extent of the ratio of debt to slower growth in the US begins to be understood. Especially when a US bond or property squeeze does a domino effect on credit.
What to do now? Expect either a rocketing gold price to above $388 now - or an announcement designed to discourage a flight from the US$ into gold, such as the co-ordinated central bank selling of the yellow metal from 1999 when the global financial community attempted to protect the world's "reserve" currency.
However there are many more sceptics out there this time - so whatever the moves to protect the US$, the technical and cycle evidence persuades me that any dips will be mere volatility in the bigger picture - and should be used to buy the gold shares that the come- lately portfolio and private buyers will want to pile into when they accept a gold run is on.
The $370's and the $380's could be seen as cheap in a year from now when the $Gold price is above $500. Use dips and pauses well. It would need trend development towards and below $364.70 (GC03Z) to delay or negate a strong run.
Our list of favourite gold shares with (I expect) on technical evidence, more than 20% three month upside on the NYSE ( not in order) is GG, NEM, GFI, GOLD, GLG, PDG, AU, HMY, AGN, CBJ - and DROOY for the more aggressive investor. SA Gold shares may outperform a bit next - as the true implications of a stronger Rand become understood.