Bill-

Unusual that the far Eastern markets would take gold down so significantly. The chickens have indeed come home to roost.

I see that J. Hussman increased his precious metals exposure on last weeks decline also, taking it from approximately 8% of his Strategic Total Return Fund to 10%. As he only buys when conditions and pricing are favorable, I will not fret over my increase in exposure since 50% of it was GLD for just this reason. It will be interesting to see whether the miners, oversold as they were, become even more oversold, or whether they firm here. Many are at values seen when gold was at 534!

In any event, this is a reminder that no entry is without risk and my plan included this possibility.

Miner position flattish but I pared holdings because of the extreme Eastern Market weakness. So much for Friday's 3-5% pop! Gone. India down 10% at one point and markets stopped? I will need to take another look see before I am comfortable with exposures here.

New GDX ETF(GDM) Market Vectors-Gold Miners ETF by Van Eck Global.

Some gold market news: http://globalgold.blogspot.com/2006/05/gold-market-news.html

Steady…..Lots of new green traders. Don't take it as a slam, please. A person has to be green when just starting. Now, you can get real smart reading the Cara site and others, but the emotional control may come only through painful experience. I've been there….ouch, ouch, ouch ouch!!

Last time Gold spiked, in the 90s, and I was much dumber than I am now, I tried to catch every zig and zag. I flipped in and out of a sector fund so often that Invesco banned me from trading for a time. They probably did me a favor, saving me from becoming a nervous basket case.

This time (so far) I am trying to play it cool, content to only catch the broad swings, give or take. Newer traders may decide they want to do the same.

I notice Bill gets lots of inquiries on specific buy and sell timing, from newbies. But of course, he can't comply. He doesn't have time, he's not a personal genie, (years ago I might have thought of him exactly that way) he's not (he said this once) greedy……catching every slight nuance usually motivated by greed, which can sure backfire, and his mission is to educate so folks can decide for themselves, rather than spoonfeed.

He does give great counsel regarding broad buy and sell times (read recent archives) , and always with a portion of one's assets, not the whole ball of wax!

Go beyond him if you have the expertise, technical tools, can stayed glued to the monitor, and Maalox. Otherwise, easy and steady.

Gold Declines in Asia on Speculation Five-Year Rally Has Ended - http://www.bloomberg.com/apps/news?pid=10000081&sid=aEZ0RM2qHq78&refer=australia

Maybe it's time to load up!!!

ALOHA !!

The Far East "Emerging Markets" have nothing to do with why gold and silver are down. If markets are collapsing why would people sell gold especially Asians who have a very long tradition honoring gold and silver as safe havens?

Look who's on the TOCOM and also on the COMEX doing most of the selling on behalf of central banks ... Goldman Sachs. Why is it Goldman Sachs only recently started to take on short positions on the TOCOM? These POG takedowns are orchestrated to perform a function ... fleecing the specs! The same time Bloomberg came out with the news the five year commodities bubble is over Goldman Sachs, JP Morgan were buyers. If the "bubble" is over then why is it Goldman Sachs gold short position is pushed out into 2007? COMEX(aka CRIMEX)has been dominated for years by one main player(hitman) ... Goldman Sachs. Look to the Bank Of England and the IMF for the answer to the POG sell off ...

I bought last Thursday, Friday and today. Number one buy ...

Never said they did. I was referring to equity prices ("miner position").

The environment for high beta has changed. I'd like to see trends re-established before committing additional capital. This rally has a long way to run and there's no need to try to hit exact bottoms.

ALOHA !!

Its not about timing exact bottoms it is more about buying in on dips. I buy on "dips" ... That is exactly what has happened over the last seven trading days. If you know the extreme short position in gold and silver both the COMEX and TOCOM are trying to hide from the trading public you will know the dips will be shorter in duration compared to those over the past few years. A fast moving market can you leave you on the sidelines or playing catch up very quickly.

You also have to look at junior mining companies on a seperated basis from the HUI/XAU or POG/POS. As a for instance. CDE and many of the listed components hit 200day lows, a few of my junior miners during this takedown barely touched 50day lows.

My number one buy ... ECU SILVER ECU.V or on the US ADR listing ECUXF ...