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May 8, 2006

Rob McEwen on $2,000 gold, Mon, May 8, 2006, 6:48 PM

Most of you know Rob McEwen as the Toronto stockbroker turned gold fund manager, turned gold miner executive extraordinaire who built Goldcorp (TSX: G and NYSE: GG) before selling out last year to start building a new junior in Nevada, called U.S. Gold (OTCBB: USGL).

Rob is a pretty fair alchemist. He turns paper money into gold. Lots of it.

Tomorrow he's going to tell you that gold is going to $2,000.

He's already told you that, of course, and so did I, but the media just can't get enough. Their advertisers are brokers who love to hear the pitch, not that it's a bad one mind you.


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Yes, isn't it interesting that on Monday Mar 6 " two months ago today " Rob stood in a packed meeting room at PDAC 2006 and opined that gold was going to $850 by 2008. Now it's $2,000.

But if you read the article I wrote about Rob from PDAC Day 2, look for that $2,000 figure.

Amazing isn't it how I just read people's minds. LOL

Geez I love this business.

Now just in case you figure you might do something silly like trying swimming in shark infested waters carrying a gold brick in each hand, let me explain gravity; and what happens to greedy people.

I gave a warning on gold this weekend even though the world knew that the $USD was going to tank. That means I was standing on a busy train track again. Usually gold powers north on days that the $USD goes south " largely because gold is priced in $USD.

It's always better to go with the flow (until it goes against you), rather than against it like I did this weekend when I issued a warning -- even though I said the trend was strongly up.

But I just feel there's going to be a pull-back soon, which is going to scare the gold stocks out of most portfolios. I'd rather you get set for some trying times ahead by taking some profit now. You have to learn to be patient, which is unnatural, and to control the greed instinct, which is an attribute we all have.

I expect the gold market to have some tough days this month. But, when I feel that traders have had enough on the downside, I'll tell you when I'm bullish again.

Just remember that piece of advice I gave about swimming with gold bricks.

And tomorrow, please listen carefully to Rob McEwen because he's going to make an excellent case for the long-term play on gold. If you don't subscribe to the real-time TV or to live web, ROBTV.com will do a Video Replay that will stay up until Sunday.

Posted by Posted by Bill Cara on May 8, 2006 06:48:11 PM | Category: Bullion