Where is the potent new factor in the gold picture?
Gold Short-Spread Derivative: This factor is the huge Gold Short Spread Derivative factor that we have written on in great detail. We refer you to the archives of HSLetter.com. Tanrange.com, LeMetropolecafe.com, Gold-Eagle.com and Financialsense.com for copies of the copious review of this new gold bull market ingredient. Now What for Gold? Gold will obtain increasing support from the traditional building blocks as the last half of 2002 plays out. As such the recent $330 top is unlikely to be anything other than gold’s first overbought interim rally high point. We see support in gold at 317, 312 & 305. Any one of these points can suffice to start the next upward move. At some point in the career of this new long-term gold bull market, the huge short position (gold short spread derivatives) will impact the market and overvalue gold. That price could establish a new all-time high for gold (i.e. $850/oz). – June 19, 2002 James Sinclair can be reached at Tan Range Exploration Corporation a
