You are here
Ted Butler: Silver miners must respond to the wolf pack of the shorts
By Jim Sinclair
Tuesday, April 20, 2004
http://www.jsmineset.com/home.asp
Gold sales by the French and Swiss national banks
represent a singular most BULLISH event. In the 1970
gold bull market, every ounce offered for sale at the
time was purchased. In this latest case, the buyers
will be Islamic and Asian and the sales will
memorialize the shift of economic influence away
from the dollar and the euro into gold.
These kinds of sales allow singular buyers of huge
amounts of gold to enter the market and/or expand
their positions at singular prices. As such, these
offerings invite bullish interest rather than dissuade
it. It can be said that the central bank selling of the
1970s made the bull market possible in terms of the
huge price advance it had off the base. That is fact,
not speculation.
There is no question in my mind that inflation is
awake and growing. It is becoming more and more
evident in daily life. Also, there is no question that
the dollar will remain weak on balance because no
policy changes are on the horizon to reduce the
triple deficits of the United States. That being said,
the U.S. dollar will go lower on balance and will not
cease its decline until policies emerge under new
managers to combat these deficits.
The combination of inflation and a weak dollar is the
formula that will push gold to $480 and in time to
$529 and beyond. So the action of the French and
Swiss central banks demonstrates a recognition of
the above and is simply an act of total desperation
to support their friends who are doomed to severe
losses.
Gold traders will turn bullish just as they did in
1979 by purchasing a central bank offering to long
side spread to hedge their short positions. Yet the
COT figures will never tell you this because they are
structured to be used by COT to their advantage.
The result of both the French and Swiss central bank
selling will be to shift the timing of the break above
$405.50, $419.70, $430.30 and beyond $480 by five
trading days. Rather than launching this week, it will
happen during the first week of May.
For you speculators out there, it now means that
emphasis should be put on the August $430 calls
because the June calls, which mature in late May,
will now be squeakers to get in the money.
* * *
American Stock Exchange press release
Tuesday, April 20, 2004
http://www.prnewswire.com/cgi-bin/stories.pl?
ACCT=SVBIZINK4.story&STORY=/www/story/04-20-
2004/0002155366&EDATE=TUE+Apr+20+2004,+10:10+AM
NEW YORK -- The American Stock Exchange today
listed the common stock of Seabridge Gold Inc. under
the ticker symbol SA.
Seabridge has been designed to provide its shareholders
maximum leverage to the price of gold. The company has
acquired a 100 percent interest in eight North American
gold projects, which collectively contain an estimated
8.74 million ounces of resources in the measured and
indicated categories plus an additional estimated 6.83
million ounces of resources in the inferred category.
The company continues to seek expansion of its gold
resource base by acquisition of new projects and
exploration programs largely funded by partners.
"We are pleased to welcome Seabridge Gold to the
American Stock Exchange," said John McGonegal,
senior vice president of the Amex Equities Group. "As
a global leader in gold and mining listings, we look
forward to working with Seabridge on building increased
investor attention within the U.S. marketplace."
Seabridge Gold President and CEO Rudi Fronk noted
that the Amex listing was an important step toward
providing greater liquidity for the company's significant
U.S. shareholder base. "We made a commitment to
our large U.S. investors to obtain a major U.S. listing
and we are pleased to deliver on this promise. We are
also looking forward to working with the exchange to
broaden our shareholder base."
The specialist in Seabridge Gold Inc. will be LaBranche
& Co. Inc.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kuik.com/KH/KH.html
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
Subscription site:
http://www.lemetropolecafe.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Centennial Precious Metals
3033 East 1st Ave.
Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
