Summer rally for gold in all currencies, Calandra predicts

By Jim Sinclair
June 18, 2003
a href=http://www.jsmineset.comhttp://www.jsmineset.com/a

There's a time to be skeptical and a time not to be.
Gold shares are reflecting a significant up-tick in
market sentiment and the motivating factor appears
to be renewed interest from the quot;establishmentquot;
investment crowd.

Their interest in gold shares is based on the
assumption that a weaker dollar is positive for
general equities and that inflation is desired by
all central banks.

That being the case, they are investing in gold
shares first and physical gold second. Gold
shares are first on their list because the shares
are severely undervalued to gold bullion at the
moment by about $50 per ounce. By that I mean
that they are being valued as if gold was trading at
$308.

Mineweb's Tim Wood had a word or two for the gold
bulls in a bullish article that was posted June 17 at
Mineweb.com. Welcome aboard, Tim. Rather than
nitpicking Tim's article, I prefer to thank him for
recognizing the shift in the marketplace as new
investors discover gold.

I believe the finest move the Romans made when
acquiring new territory was to welcome its inhabitants
as citizens of Rome. With that historical precedent
in mind, I'd like to personally welcome Tim to the Gold
Community. I expect Andy Smith will join at some point,
but you can never be sure of anything with a gold-sector
analyst.

Cynicism be gone!

Tim's gold share article, quot;Newmont at $180,quot; is simply
DAMN BULLISH. I thought I had wandered off the beaten
path yesterday by asking the Gold Community if triple-digit
RGLD was possible based on a 21-year reverse head
and shoulders formation concluded and branded correct
by pullback/move away/up. But Tim managed to trump
even that.

So here are my conclusions:

1) A new crowd has entered the gold game, so the old rules
will not work as well as they have up to now.

2) The ratio gold trade is dead.

3) The ratio gold traders are deader. More dead? Whatever!

4) Therefore, the eight-week gold cycle is reduced in its
influence.

5) All that said, I am bullish on both gold shares and gold
bullion, period.

The Kiss (Keep it simple....) Principle

1) Traders will, as always, use all their tools, so no change
there.

2) Aggressive investors will seek overbought as a major key
for selling one third and oversold to return. Price momentum
on gold from the Investor's Business Daily is a wakeup call
for that.

3) Investors should bring themselves to full commitment on
a cash basis.

4) Insurance investors might consider stepping up to
become investors.

Each definition of who you are in this gold market should
consider stepping up a division, but cautiously, of course.

Also, please make my life easier and get your online or
home-delivered Investor's Business Daily. Just look at how
useful their charts have been in the past and may well be
in the future.

My job is to get you free of me. My job is to bring you up
to a level where you can perfectly interpret the advice of
your counselors and make correct decisions on your own.

Finally -- and with a little help from the Big Guy/Gal
upstairs -- I want to get you out before the roof falls in.