Value Microcaps Junior Miners

[basserdan]

From today's Gartman Letter...... (12-3)

"COMMODITY MARKETS HAVE BECOME “ALL GOLD/ALL THE TIME” as nothing else seems to matter and the world’s focus is strongly… but not all that surprisingly… upon gold. The market is moving in much, much larger ranges, and already we’ve seen gold rally nearly $20/oz since the NY close, and we’ve seen it stumble 15/oz .There was little if any news to account for those movements, not need there be. This is what the market has become at this point: a violent random Bubble that only the well capitalized can or should be involved.

Concerning the “Bubble” nature of the moment, we note that the Chinese have weighed in on this argument, with a ranking Chinese official, Ms. Hu Xiaolian, a Vice Governor of the People’s Bank of China, noting that "Gold prices are currently high and markets should be careful of a potential asset bubble forming… We must keep in mind the long-term effects when considering what to use as our reserves… We must watch out for bubbles forming in certain assets, and be careful in those areas."

As our good friend, Mr. Jon Nadler of Kitco.com noted in this regard yesterday, “This is the China that is supposed to be getting ready to go on a gold shopping spree that some have estimated to range from 2 to 10 thousand tonnes?"

Things then are hotting up in the gold market, and we are comfortable remaining long of gold even now, but we are more comfortable, as we have been, owning gold in EUR, or Sterling or more recently Yen terms, than we are owning it in dollar terms given the inherent, volatile nature of that inherent dollar exposure."