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August 16, 2006

Crystallex is a good "bet", Wed., Aug. 16, 2006, 9:50 AM

Yes, I could say that MarkM has wisdom, but then when it came to his remark this morning about Crystallex, I could also say he is a wise guy. (lol)

Yesterday, I carefully laid the groundwork for traders to follow. Yes, I stated clearly that KRY share performance will depend on the company obtaining the permit, and no, I said, the Vannessa Ventures (TSE-V: VVV) complaint has almost zero chance of success. In fact, the claim is not against Crystallex, but against the government of Venezuela for money damages.

Good luck. (written sarcastically)

As to the environmental permit required by Crystallex for Cristinas, I believe I said that the permit was almost assured, and that the receipt would be when it is, which in the case of a motivated government (as is the case), has indications of being shortly.

Yes, I believe that KRY will be worth double-digits after the mining issue is decided, leading up the major financing that will be required. But it is also, on the basis of probabilities, worth at least what many Canadian financial institutions have put up their money at, which is above the current price, and probably double it.

Yes, I don't at all accept the current crying over gold prices. I, like Citigroup and UBS and people like Rob McEwen, believe the price is going much higher in the next year or two. I am not a believer in a strong USD, and I am a believer that the growing middle-class of India and China are buying gold in great amounts, and will until the price increases at least another 20-25 pct from here.

KRY is not a bet any more than any other mining or industrial company. A bet, by the way, is something you do at a casino, where the probability of winning is fifty pct, and the winner's take is considerably reduced by the house.

Holy Cristinas! MarkM. Get with the program. It's not that difficult to figure out.

Hahaha. No MarkM, you are the best. I take that back. You are not a wise guy other than the obvious wisdom you impart in this blog almost every day. I'll send you a ton of private research reports on KRY, and maybe you'll see the way.

Posted by Posted by Bill Cara on August 16, 2006 09:50:39 AM | Category: Goldminer Producers

Discourse

Perhaps MarkM has a long memory or something.

The fact is that the saga of Las Cristinas is now in its second decade, a long and winding road since the days of Bobby Miller.

So far, there is not much gold to show for it, so one can understand why skeptics abound.

Posted by: Teresa Lo [TypeKey Profile Page] at August 16, 2006 10:35 AM [link]

Perhaps the long and tortured history of KRY is what adds to the potential here. The skeptics who short the stock will pay dearly to cover their obligations should the permits get done. So far I think a big plus on this speculation is the transparency of the data and the promotion. I run for cover when I see a promotion or a deal that is available only in Canada and not for customers in the USA due to filing requirements that would be too revealing for the promoter or otherwise stop it in its tracks.. Not the case here so far. Thank you, Bill, for your pro bono work.

Posted by: TerryC [TypeKey Profile Page] at August 16, 2006 11:35 AM [link]

Still wondering if the cloud around gold has a silver lining.

As one who also believes in trading what's in front of me... I can't let a break in trend in Gold over ride the action in Silver and the XAU... for now.

I agree with the fundamental back drop Bill and UBS suggest. When the market is turning against Gold, Silver and the XAU I will let some stops limit my exposure. For now I'm seeing Silver in the Rocky Mountain Skies. Heading out to spend the day with some grass eaters- good luck to all.

I also agree that a stock like KRY is a high risk bet... a gamble. It's not something to bet the ranch on, but aren't we all gamblers?

long various miners (yes, KRY is 1 of the 7) the SLV and the GLD. I have been and am o/w silver vs. gold due to those charts we all study.

ps- Bill, could I get a copy of those research reports as well?

Posted by: stockman [TypeKey Profile Page] at August 16, 2006 12:36 PM [link]

Markets are starting to reverse a little here. Both the SPY and NYSE comp have fallen back into the opening range. Will have to see if the afternoon buy programs can save the day.

Andrew

Posted by: Andy [TypeKey Profile Page] at August 16, 2006 1:28 PM [link]

Volume on gold looks weak, oil looks to be going down.
I hate to say it...but it looks like Naz will rally here.
I fear a correction in PMs here.

Posted by: DollarBill [TypeKey Profile Page] at August 16, 2006 1:54 PM [link]

"Holy Cristinas! MarkM. Get with the program. It's not that difficult to figure out."

I must be too dumb. I'll call my University and ask for a refund on that J.D.

Whie I'm waiting to hear back from them I'll look for signs KRY is going to pop. How will I know? I'll hear JC singing its praises again on his show after a little bird whispers in his ear. Just like last time. Should go to the moon. Or maybe the promoters will think it's best not to go to the well too often. Try another tack maybe.

Maybe I'm missing it. Maybe I'm getting tired folks. Tired of manipulations, interventions, faulty and fraudulent statistics, short-sighted policy and on and on and on and on. Tired of this market for sure.

I think I need a rest. Think maybe I'll mosey on. I'll grab an easy chair and just watch. The fireworks don't start for awhile anyway. And like I said before, there's real money to be made elsewhere. Good luck and good trading everyone.

Posted by: MarkM [TypeKey Profile Page] at August 16, 2006 2:16 PM [link]

MarkM, your comments are always welcome here. These markets have everybody on edge.

Posted by: alan [TypeKey Profile Page] at August 16, 2006 2:25 PM [link]

What's not to like about this market? Gen'l Motors (GM) is on the uptrend; Garmin Ltd. (GRMN) just split its stock 2:1; Dell Computers (DELL) appear to be absorbing some bad news; Cisco Systems (CSCO) might be on a suckers' rally; and Microsoft (MSFT) is being...well... Microsoft. Great two days for the short term traders (everyone, even speculators deserve a good day(s) once in a while).

Posted by: oratier [TypeKey Profile Page] at August 16, 2006 4:05 PM [link]

MarkM, Differing opinions are what keeps life interesting.....as Alan said, your comments are always welcome!

Posted by: rward [TypeKey Profile Page] at August 16, 2006 4:39 PM [link]