Replies to post #74898 on Zeev's Turnips Patch-No Politics (ZEEV)

[justamother]

ML, are you going to hold your trading equipment shorts 'til tomorrow, thru amat report, or what?

TIA

[jdaasoc]

I think it was last does of short calls on CCMP and long SOX PUTs i did today <g>

[Sandy Mack]

Covered half the AMZN short @20.7 for +1.9 and took a MERQ long @ 33.43 (both ST positions).

Sandy

[basserdan]

Hi mlsoft and other Gold Bulls,

James Sinclair's Q&A

[b[]Q&A
Jim's retort to the power of shorts (and other answers to questions of the day!)

Q: I have been in the gold stocks over a year now and am beginning to believe that the hedge fund and shorts are just too powerful.

A: However, gold has risen to a high so far of $390.80. All incipient bull markets climb a wall of disbelief and worry. You are observing that wall so why throw in the towel?

Q: I have been trying to keep up with what is going on from the CAFE and Kitco.
But I am beginning to think the shorts have the upper hand on all our gold stocks.

A: The day before yesterday they did. A month ago they did not. That is what markets are all about. How about you write down your feelings and on the next rally sell 1/3. It will be good for your outlook. However, sell high then either do not buy or buy low. I am not being mean. I am saying it the way I see it.

Q: I am barely surviving on my April future. My stop is $360 and I *just* survived last night's massacre by a dollar.

A: Consider how well you would have done if you had employed a trailing stop. I bought April this morning for myself so let's see how we do. I obviously feel the reaction is temporary. We had $390 overnight recently and it is so easy to trade overnight. Have you checked to see if your commodity broker will take Comex contracts overnight in the world markets? Don't be mad at gold, be mad at yourself for going into a speculative market and failing to use the tools of a speculator.

Q: I didn't have enough money to order a contract and delivery on the NYMEX though I would if I could. I bought 5 new minted gold coins, but the money I used to buy the 'future' (spread-bet mirror of a future) would only have bought me 9 gold coins anyway, not enough to make a difference.

A: Of course you made a difference. Thank you.

Q: Do you think my future can hold out one more night?

A: Yes, IMO, but don't do that again.

Q: The manipulation is only in the NY market, every other market is stable or going up but when NY opens it just tanks or gets stabbed some time after 11am. If my 'future' closes out, should I risk and buy another given the massive commercial short position? Can I be
anything but crushed by the will of the big commercials with government support? Please can you write back to me, I have read you religiously for over a year now. I would be happy with just one sentence of your thoughts.

A: If you get into a knife fight it is good to have a knife with you. You go into a speculative medium, then do not treat it like an investment, it isn't unless you pay in full for it.

Q: First off, I'd like to thank you so much for all you are doing to educate those who are willing to listen. I am an avid listener, reader and fan of yours. I've especially enjoyed hearing your comments on the Tom O'Brien Show. My question is in regards to the pure gold shares you referred to in tonight's email. Would you please be so kind as to name names. From listening to Tom O'Brien and by subscribing to his "Gold Report", I think I have a pretty good Idea who the big hedgers are -- assuming Tom is correct.

A: Pure golds means no hedges, no silver. Royal Gold, Goldcorp and Goldfields are examples of these. I would suggest you might consider a subscription to the "World Gold Analyst," (Fax access code: 44-1732-865747; Phone access code: 44-1732-864333) which is a non-stock brokerage review of gold shares outlining all the criteria of each company such as hedging. I have no financial relationship with this publication nor do they know I recommend them. However, it seems as objective as one can be in reporting on these companies and therefore important to gold share investors. It does not predict anything but only reports on the companies.

Q: Maybe a better question would be, where can we view the Schultz Index of pure gold shares? How can we find out what companies comprise this index?

A: Harry Shultz has a service called Gold Charts Are Us (GCRU) in which this information is contained. You can locate Harry at: www.HSLetter.com, then selecting "Contact Us." Again, please know I have no financial relationship with Harry, only more than 30 years of profound respect for his work and principles.

Q: I am interested in getting into gold & silver but I am unsure as to what to purchase. I would probably like to purchase some coins, some bars, etc. Some to keep for future profit, some to give to the children as keepsakes.

A: My feeling is that no investor should ever change their profile to a more speculative level. By that I mean that a share investor should stay a share investor although he/she might consider fully paid bullion which like a share has no leverage character. I am going to guess you are a conservative investor, therefore, one ounce bullion coins are the most likely focus for you.

Q: I ran across the Kitco website and they seem to have something interesting by way of a pool that can be purchased. This allows me to make an investment but can determine at a later date how I wish to receive it.

A: With no negative reference to this company, may I suggest to you that gold is an insurance investment. The insurance is against the financial problems of others. Therefore, why do you want to leave your assets in the possession of others?

Q: What is your opinion on this method of buying the metals?

A: For a conservative investor, bullion fully paid in their own possession.

Q: I have only started to read your newsletters and commentaries and already feel that you have much wisdom and substance to your analysis. If I could make a suggestion, and of course this is not meant to insult you in any way but rather provide readers with an opinion. I would focus primarily on your gifted knowledge of what you can offer to the reader/student and less on discrediting some of the bozo manias that purport to be experts in this industry!

A: How about when the community is running scared out of their wits based on a totally fallacious airing of a position on gold which happened recently? I know you are correct but do you see a time for exceptions? Maybe not? I, like yourself, believe in a positive approach and if you cannot say anything good about someone, say nothing. Your opinion would be appreciated. I want to supply what the community wants. I have no mission to give them what I want.

Q: I have a quick question: Is the Schultz index actually tradable? On what site can I find this index to monitor? I tried seeking it on the CNBC site and nothing of this sort comes up.

A: It is private index he supplies to his trading clients. I do not believe Harry gives it publicly but go to www.HSLetter.com and select "Contact US" to ask.

Q: I have been a Gold buff for several years and am happy to report that the benefits have been grand for the past few years!

A: It has only started. This is a long-term bull market in gold heading towards remonetization.

http://www.jsmineset.com/s/GeneralEditorial.asp

Regards,
Dan