Dear CIGAs,
There are still extremely large (legal and otherwise) shortpositions in junior gold and silver as well as junior producers, bothwho remain uncovered. Their ability TO POUND LOWER is coming to an end.
The short of gold on the COMEX, or for that matter the short of gold in everything gold and silver is incestuous.
We have differences from time to time in market views, but I believeyou respect my understanding of the technical characteristics and mindof the opposition in precious metals.
Within a maximum of 60 days for comment on the reinstatement of aneffective form of the uptick rule, cover needs to be accomplished inthe next 90 days for the extremely large short position in the modestor low-volume trading silver and gold issues.
The short sellers, having DONE THEIR BEST TO POUND DOWN THE PUBLIC COMPANIES TO COVER, now have only one option left.
DIRTY TRICKS
You will recognize the dirty tricks when they occur.
You witnessed it in Royal Gold (RGLD) when it occurred. You haveseen it in multiple silver issues. The South African shares have notbeen immune.
No precious metal share is immune for the next 90 days. That goes without exception.
Upward Surge From Uptick Rule’s Return?
By RANDALL W. FORSYTH Barron’s Weekly
Market’s bottoming is a process that can’t be hastened bygovernment interference.WILL THE UPTICK RULE SAVE the stock marketagain?
Back in 1938, the original establishment of the uptick rulehelped to reverse the 49% drop in the stock market over the 1937-38period, according to Louise Yamada, the highly regarded head of LouiseYamada Technical Research Advisors.
The Securities and Exchange Commission is scheduled to take up anumber of proposals Wednesday that would curtail short-selling,including a reinstatement of the uptick rule. (To review, thatregulation required that a short sale — the sale of borrowed shares inanticipation of lower prices — could only take place after a trade thattook place at a higher price, that is, an uptick. The idea is toprevent piling on by the bears.)
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How do you prepare?
1. You must eliminate ALL margin. Margin is the tool of dirtytricks, which still exists under $5 as maintenance margin. It is thekiller. If you have any form of margin in anything gold between now andmid-June you have made yourself a sitting duck for the last try tocover, known here out as the DIRTY TRICK.
2. Be prepared mentally to go through what the shareholders of Royal Gold had to endure around $10 before it rose to over $40.
3. Recognize that the strategy of the DIRTY TRICK is now a lastditch hail Mary play by the bad guys (people who cannot profit if thegame is played according to the rules) to make cover as they are aboutto lose.
4. If you know that emotions have a nasty habit of driving yourmarket or investment decisions, please reduce the size of your positionto the point of comfort, but stay prepared to re-enter if your issuebecomes the target of the DIRTY TRICK.
Please remember that Royal Gold (RGLD) earned its position as atarget because it was a leader in the field and had a large frustratedshort position made up of the same suspects as today.
The Mitchell Report
Email Exposes Short Seller Plot to Destroy a Public Company
February 17th, 2009 by Mark Mitchell
This is Part 3 of an ongoing series.
A few years ago, a clique of influential journalists went toextraordinary lengths to cover up the problem of illegal short selling.In the face of indisputable data and evidence, the journalistsinsisted, over and over, that “naked” short selling (hedge fundsmanipulating stock prices by flooding the market with phantom stock)rarely occurred. And they said short sellers (who profit from fallingstock prices) don’t set out to destroy public companies.
Moreover, if a person were to criticize illegal short selling,the reporters would smear that person’s reputation with a savagery thatwas almost without parallel in contemporary journalism.
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Royal Gold fights back after Barron’s sledging
12/08/2005 10:53:58 PM.
NEW YORK — Having lost one third of its stock price to a Barron’sarticle sceptical of its valuation, Royal Gold [RGLD] has fought back,but the damage appears to be semi-permanent.
Much has been made ofBarron’s reliance on an admitted short-seller for its information; asilly complaint since there is never an outcry when longs benefit fromstock punts which are vastly more common in any and every context.Every informant has a vested interest, so full credit to Barron’s fordisclosing that of its source.
What about Barron’s paltry valuation of anything from $4.50 to $9for Royal? An immediate problem is that none of the top analysts coverRoyal. Canadian outfits Canaccord and Griffiths McBurney & Partnersused to cover it, but that was way back in 2001. After all [adoptcynical attitude], royalty companies do not generate a lot ofinvestment banking business.
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Then came the assault against the leader, Royal Gold relating togold and a future role that it may play in supporting the Dollar in theyear 2005.