Gold

GOLD DISCOVERY LETTER PREMIUM

MID MONTH UPDATE

Gold continues its impressive march,
silver explodes!

April 17, 2006

Dear member,

In case you’ve missed it, gold and silver are on the run these days..

It’s stunning to see what gold and silver are doing these days and it’s even more stunning to see how more analysts are calling for a correction here..

We’ve heard that drill over and over again since early December 2005, gold is poised for a correction here, it’s over extended, sell your gold holdings etc etc.. Even worse, some even advise to go short these days. Although it’s not my intention to comment on other colleague writers opinions (I do respect all of them) I feel I have to at this time since we received some mails last week from our own subscribers being scared for a correction here..

This single most important news of this mid-month update of The Gold Discovery Letter concerns a detailed coverage of one of the greatest discovery cases so far in 2006 from company XYZ. Furthermore in this issue:

HUI – The Party Continues part II
General commodity market snap shot
Best Discovery News April 2006

-        XXX
-        XXX
-        XXX
-        XXX

HUI – The Party Continues part II

As our members know we’ve urged them not to fall for the correction thesis since early December 2005. Again and again I explained why. For those who want to review this sequence of events can re-read the following pieces:

Jan 9:             Selling Juniors? You must be kidding!
Jan 16:           The Party Ain’t over Yet!
Feb 17:           HUI - Too Young to Die!
Mar 05:           HUI - Too Young to Die! –Update-
Mar 15:           HUI – where to go from here
April 01:          HUI – The Party continues!

To our readers I would say: Just keep it simple, the HUI is in an uptrend and as long as that being the case, just don’t do anything at all..

Some analysts argue that the HUI is in a corrective phase since the end of January. That’s simply not true since the HUI clocked a higher high on April 6 (354 vs 349 end of January)… You just don’t sell new highs, you just don’t sell because it ‘feels’ overextended, who’s the judge of that? The market is the only judge that matters.

Again the 70’s comes to mind, gold traders who bought gold at $250 and sold it at $400 because they felt it was overextended could most probably kill themselves a few weeks later since gold shot up to its all-time high of $850..A simple trend line would have prevented them from selling too early..

The HUI long-term chart below clearly demonstrates that the HUI uptrend (B-line) isn’t challenged at all these days and that there’s plenty of upward potential left.

I’ll stick to my target of HUI 430.

Sure enough the upward momentum for the gold stocks is determined by great degree by the price of gold. The price of gold did find some decent resistance at $572 lately but on March 29 it attacked that level for the third time in a short period of time and took it out definitely. At first sight this $572 doesn’t seem that important but when you realize that $572 reflects exactly gold's inflation adjusted average for the last 35 years and that $572 was a major hurdle which couldn‘t been overcome during 1994-1997 the whole picture changes.. Now that this major hurdle of $572 has been taken out it has become solid support. So the odds are we won’t have a major correction in gold from these levels since the $572 level provides solid support.

The chart below tells it all:

The importance of $572 becomes clear:

It was a support level in 1985 and major resistance from 1994-till 1997.

Now recently it broke that resistance and became support

As we have learned from the HUI break-out at 250:

DON’T SHORT AN ITEM WHICH JUST BROKE A LONG TERM RESISTANCE LEVEL

Now that gold seems to be on the verge of taking out the $600 barrier combined with an increase in geopolitical issues the odds for a major correction disappears like snow in hell.

Furthermore the importance of taking out $600 shouldn't be ignored, please see the comments below which I received from trader Dan Norcini who is a professional trader for more than 15 years

Comments Dan Norcini:

Gold tends to lose some momentum when it gets to these round numbers like $300, $400, $500 and now $600. Each time it has hit these levels and then set back some before building a base and then attacking the level and then closing above it and STAYING above it. Once it stays above that level for some time, the end users realize that we have reached a new plateau and adjust their buying points accordingly. With this $600 level we are seeing an increase in major geopolitical issues at the same time we are witnessing massive amounts of liquidity creation and soaring levels of indebtedness. That is a perfect combination for a sustained higher gold price. There are many extremely smart and wealthy investors who are big players who recognize this and will be eager buyers on any price setback. They will be buying dips in this market and I think they will be well rewarded. END.

Jim Sinclair won’t give up any gold share either, he told his readers yesterday:

As far as the gold market is concerned
$612 is pulling gold to it and the slingshot
effect will take gold into the $625 to $630
range.

The next magnet is at $682 and then $887.50. You can waste your time arguing. You can draw charts, quote waves or read the stars. The major influence is the nuclear cold war that can get hot at any moment.

If you want to give away your gold or gold share position then that is your right. I won’t. END.

Jeffrey Kern (http://www.skigoldstocks.com) who developed the impressive Ski gold stock prediction system came out on April 15 with the following:

This Update focuses on the short-term because we know that the long-term and the intermediate-term trends are UP. And we now have the short-term trend boxed in and are about to get another SKI BINGO hit to the upside! Remember: I usually write about uncertainty until I have clarity. I now have clarity regarding the short-term trend. We are either: (1) going to get an explosion in gold prices on Monday or within 6 trading days or (2) make a major low in 10 trading days (much less likely). INTERMEDIATE AND LONG-TERMERS STAY EXTREMELY BULLISH for another 1-2+ months (Smile). END.

General Commodity Market Snapshot

FOR SUBSCRIBERS ONLY

Best Discovery News April 2006

Companies covered here:
(click on company name to go directly to its corresponding press release)

FOR SUBSCRIBERS ONLY

Subscription Info - Click HERE -

DISCOVERY PORTFOLIO UP + 85%
SINCE NOVEMBER 2005


Your browser does not support inline frames or is currently configured not to display inline frames.	GOLD DISCOVERY LETTER PREMIUM MID MONTH UPDATE Gold continues its impressive march, silver explodes! April 17, 2006 Dear member, In case you’ve missed it, gold and silver are on the run these days.. It’s stunning to see what gold and silver are doing these days and it’s even more stunning to see how more analysts are calling for a correction here.. We’ve heard that drill over and over again since early December 2005, gold is poised for a correction here, it’s over extended, sell your gold holdings etc etc.. Even worse, some even advise to go short these days. Although it’s not my intention to comment on other colleague writers opinions (I do respect all of them) I feel I have to at this time since we received some mails last week from our own subscribers being scared for a correction here.. This single most important news of this mid-month update of The Gold Discovery Letter concerns a detailed coverage of one of the greatest discovery cases so far in 2006 from company XYZ. Furthermore in this issue: HUI – The Party Continues part II General commodity market snap shot Best Discovery News April 2006 - XXX - XXX - XXX - XXX HUI – The Party Continues part II As our members know we’ve urged them not to fall for the correction thesis since early December 2005. Again and again I explained why. For those who want to review this sequence of events can re-read the following pieces: Jan 9: Selling Juniors? You must be kidding! Jan 16: The Party Ain’t over Yet! Feb 17: HUI - Too Young to Die! Mar 05: HUI - Too Young to Die! –Update- Mar 15: HUI – where to go from here April 01: HUI – The Party continues! To our readers I would say: Just keep it simple, the HUI is in an uptrend and as long as that being the case, just don’t do anything at all.. Some analysts argue that the HUI is in a corrective phase since the end of January. That’s simply not true since the HUI clocked a higher high on April 6 (354 vs 349 end of January)… You just don’t sell new highs, you just don’t sell because it ‘feels’ overextended, who’s the judge of that? The market is the only judge that matters. Again the 70’s comes to mind, gold traders who bought gold at $250 and sold it at $400 because they felt it was overextended could most probably kill themselves a few weeks later since gold shot up to its all-time high of $850..A simple trend line would have prevented them from selling too early.. The HUI long-term chart below clearly demonstrates that the HUI uptrend (B-line) isn’t challenged at all these days and that there’s plenty of upward potential left. I’ll stick to my target of HUI 430. Sure enough the upward momentum for the gold stocks is determined by great degree by the price of gold. The price of gold did find some decent resistance at $572 lately but on March 29 it attacked that level for the third time in a short period of time and took it out definitely. At first sight this $572 doesn’t seem that important but when you realize that $572 reflects exactly gold's inflation adjusted average for the last 35 years and that $572 was a major hurdle which couldn‘t been overcome during 1994-1997 the whole picture changes.. Now that this major hurdle of $572 has been taken out it has become solid support. So the odds are we won’t have a major correction in gold from these levels since the $572 level provides solid support. The chart below tells it all: The importance of $572 becomes clear: It was a support level in 1985 and major resistance from 1994-till 1997. Now recently it broke that resistance and became support As we have learned from the HUI break-out at 250: DON’T SHORT AN ITEM WHICH JUST BROKE A LONG TERM RESISTANCE LEVEL Now that gold seems to be on the verge of taking out the $600 barrier combined with an increase in geopolitical issues the odds for a major correction disappears like snow in hell. Furthermore the importance of taking out $600 shouldn't be ignored, please see the comments below which I received from trader Dan Norcini who is a professional trader for more than 15 years Comments Dan Norcini: Gold tends to lose some momentum when it gets to these round numbers like $300, $400, $500 and now $600. Each time it has hit these levels and then set back some before building a base and then attacking the level and then closing above it and STAYING above it. Once it stays above that level for some time, the end users realize that we have reached a new plateau and adjust their buying points accordingly. With this $600 level we are seeing an increase in major geopolitical issues at the same time we are witnessing massive amounts of liquidity creation and soaring levels of indebtedness. That is a perfect combination for a sustained higher gold price. There are many extremely smart and wealthy investors who are big players who recognize this and will be eager buyers on any price setback. They will be buying dips in this market and I think they will be well rewarded. END. Jim Sinclair won’t give up any gold share either, he told his readers yesterday: As far as the gold market is concerned $612 is pulling gold to it and the slingshot effect will take gold into the $625 to $630 range. The next magnet is at $682 and then $887.50. You can waste your time arguing. You can draw charts, quote waves or read the stars. The major influence is the nuclear cold war that can get hot at any moment. If you want to give away your gold or gold share position then that is your right. I won’t. END. Jeffrey Kern (http://www.skigoldstocks.com) who developed the impressive Ski gold stock prediction system came out on April 15 with the following: This Update focuses on the short-term because we know that the long-term and the intermediate-term trends are UP. And we now have the short-term trend boxed in and are about to get another SKI BINGO hit to the upside! Remember: I usually write about uncertainty until I have clarity. I now have clarity regarding the short-term trend. We are either: (1) going to get an explosion in gold prices on Monday or within 6 trading days or (2) make a major low in 10 trading days (much less likely). INTERMEDIATE AND LONG-TERMERS STAY EXTREMELY BULLISH for another 1-2+ months (Smile). END. General Commodity Market Snapshot FOR SUBSCRIBERS ONLY Best Discovery News April 2006 Companies covered here: (click on company name to go directly to its corresponding press release) FOR SUBSCRIBERS ONLY Subscription Info - Click HERE - DISCOVERY PORTFOLIO UP + 85% SINCE NOVEMBER 2005
	- END -