Bill Cara: Another triple-digit loss, Wed., Sept. 21, 2005, 5:20 PM

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September 21, 2005

Another triple-digit loss, Wed., Sept. 21, 2005, 5:20 PM

It took two rather large-sized ill-tempered women to put Gold (Dec-05 contracts) up +10.70, to $470, earlier today on COMEX. As the cost of recovery and rebuilding from hurricane damage rises into multiple hundred billions, covered in large part by government, the Yellow Metal is going to rise in price. In fact in the past few momments, gold has risen a further +6.10 to $476.10.

We are now into the 475-525 range that I forecasted some time ago. How far and fast it can go, is anybody's guess. There is not an investment analyst on this earth who can tell you the price of Gold a year, quarter, or even month from now. All that is apparent " for all the known reasons " is that the price is going up.

How can I say that with a 98-pct confidence? For starters, I look at the forward contracts of the futures market. Like this picture at the close today.

Yes, the Dec-09 contract today closed at $554.30 on the COMEX. Yesterday it was $536.90. That's quite a single-day bump.

There may be a few more like it this week.

I have always written that the laws of nature are the most important factors in capital market prices, whether those factors are human nature, Mother Nature, or whatever.

I have also always written about Ecclesiastes 3 because in life there is always a time...with Rita it's a time to take shelter; then it will be a time to suffer damages, followed up by a time to recover and rebuild.

That's life. That's the capital market.

And today the broad equity market, in the shape of the Dow 30 index, was down "103, which is clearly a time to fall. I doubt, however, the rest of this week will be a time to rise.

Posted by Posted by Bill Cara on September 21, 2005 05:20:44 PM | Category: Cara Today in the Market

Discourse

Bill -

Wondering your thoughts on Rob McEwen formerly of GG now of USGL.OB
http://finance.yahoo.com/q?s=USGL.OB

Rob McEwen Becomes U.S. Gold's Largest Shareholder
Friday July 29, 4:05 pm ET

DENVER--(BUSINESS WIRE)--July 29, 2005--U.S. Gold Corporation (OTCBB: USGL - News) is pleased to announce that Rob McEwen has purchased by way of private placement with the Company, 11.1 million shares for $4,000,000 becoming the Company's largest shareholder with 33.3% interest. It is planned that Mr. McEwen will be assuming the role of Chairman and CEO shortly following the planned resignation of current management.
"Rob McEwen is one of the noted visionaries and entrepreneurs in the gold-mining sector. As my brother David and I close out our last chapter in the U.S. Gold story, a company we founded 28 years ago, we are very pleased to be turning the next chapter over to Rob. Rob's vision for building U.S. Gold is exciting," said William Reid, U.S. Gold's outgoing President.

As part of the transition, four of the six current directors of U.S. Gold have agreed to resign from the board. Pending regulatory filings, the current board intends to replace the resigning members with nominees of Mr. McEwen.

Over the past twelve years, Mr. McEwen turned Goldcorp Inc. (NYSE: GG - News; TSC: G) from an investment company with a market capitalization of $50 million into a mining company with a market value of $5.4 billion today. He has been honored with such awards as the Northern Miners Man of the Year Award, Ernst & Young's Ontario Entrepreneur of the Year Award in the Energy Category, PDAC's Developer of the Year, and under his leadership, Goldcorp was named one of Fast Companies 50 Companies of Innovation and Business Week's selection as one of the 50 most innovative companies on the web.

"U.S. Gold's Tonkin Springs property is exciting. Its 36-square-mile property position, strategically located on the Cortez Gold trend in Nevada, is in the heart of a promising exploration play. Tonkin Springs has an existing gold resource of 1.4 million ounces within the upper 250 feet over a relatively small area of the property. The exploration potential of this property has increased over the past few years as Placer Dome, which adjoins our property to the north, has continued to discover several multi-million ounce gold deposits, some of which have reached to a depth of 2,000 feet. Tonkin Springs is a great asset, and I intend to aggressively explore this interesting property," said Rob McEwen, U.S. Gold's incoming Chairman and CEO.

The previously announced merger with Romarco Minerals has been terminated.

Posted by: RlzGain at September 22, 2005 1:30 AM [link]