Things are clearing up a bit

I would like to say that I am up today but that is not the case. Portfolio is back in the $10,700 range and I am down almost $3K from the peak. Problem is that I still have gold positions which can go down!

The Royal Gold position looks like it was throwin money away and that one is done. As far as the NEM Jan 2006 $50 calls - it looks like those might be too close in term. I am not going to sell those yet, but I think the hope and prayer right now is that the XLF short is going to come through and bail my ass out over the next couple days. Money could then be taken from there and I could purchase some longer term NEM Jan 2007 $50 calls. That would be great if the miners common was back in the $40 range as I could probably pick them up for around $1-$2. I would probably try to take all capital from the XLF trade in there.

Also, the SNDK speculation is lookin less and less likely, but I will let you know on final call there.

Here is the portfolio snapshot: (OUCH!)

Also re: the gold market in general. It looks like it was a bad call to expect it to go straight to $500. I think what is going to happen now is a significant period of consolidation as the Fed keeps raising rates. However, once it becomes clearer that economy is falling apart and the Fed pauses or relaxes, I think gold will go through the roof. That might not happen until next March though, so don't hold your breath!!!

Also, another caveat - if dollar was to collapse before then - it would also be enough to help out gold. However, that is unlikely with Fed raising rates - again, if money market rates in the USA are around 4-5% in two months and the rest of the world has around 2% - certainly the case still in Europe - the demand for dollars should keep up for investors to park their capital in the USA.

Regards,

BG