TRX Gold Ord Shs T.TRX

insight

[RHAK]

GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS There is a shortfall in silver of 100 to 140 million ounces a year and aboveground silver stocks should be depleted by next fall. We do not envision silver owners, such as in India, selling their trinkets at least until silver reaches $7.00 an ounce. As we all know our government, in collusion with the Silver Users Association, large investment banking houses and the CFTC, do depress silver prices. They do this as they have in the gold market by using derivatives. We find that COMEX and CFTC statistics show that there are total short positions of 335 million ounces, more than twice the amount of the yearly production shortfall. Two hundred million ounces of the short position is held by only four of the largest traders. That means delivery is impossible. The identifiable silver stocks are no more than 150 million ounces, which if those figures are close to a total, means there should be a silver short squeeze before yearend. The silver market is rigged and if our numbers are correct the rigging should end by the end of 2003. We also notice that some larger silver hedgers are discontinuing setting new hedges, such as Barrick Gold. As in the gold market hedgers, such as Barrick, will start delivering into their hedge books. That will put upward pressure on prices similar to what we have just seen in gold. You’ve seen the commentary by Warren Buffett and many observes, ourselves included, believe Mr. Buffett has been buying gold. He bought 4,000 tons of silver in 1998 and as far as we know he still owns it. We can promise you there will be a derivative meltdown and government won’t be able to stop it. It is only a matter of time. The genie is out of the bottle. Now we’re a toxic mega-catastrophic mess. This publication has hammered on the derivative issue and its consequences since 1994, long before other letter writers caught on. And, long before GATA became a reality. Mr. Buffett sees a derivative collapse. If he sees that he has to see the potential for gold and silver. This is the first time in years a legendary investor has come out for our side and his words will have far reaching implications for the elitists. The result is buy and hold for the long-term. Today’s reduced prices for gold and silver coins and shares are a steal. Gold is now in phase two, which should take it to $512.00 an ounce. Understand gold is now in consolidation after having broken out, and even more important is that we are only at the beginning of gold’s multi-year bull market. The correction and consolidation gives you a second chance to buy. This move will move the prices of gold stocks substantially higher. We continue to believe the mid-caps are the safest and should produce the best gains in the better quality category. They include *Agnico-Eagle (AEM-NYSE), *Goldcorp (GG-NYSE) and *Crystallex International (KRY-ASE). We do believe that from here on out that the juniors and exploration companies will be by far the biggest winners, especially those that have been indiscriminately pounded down. Remember, bull markets climb walls of worry. Inflows of funds to precious metals and precious metal shares have been very limited. Once the markets in gold and silver get going everyone will want in on it. Gold is now in phase two, which should take it to $512.00 an ounce. Understand gold is now in consolidation after having broken out, and even more important is that we are only at the beginning of gold’s multi-year bull market. The correction and consolidation gives you a second chance to buy. This move will move the prices of gold stocks substantially higher. We continue to believe the mid-caps are the safest and should produce the best gains in the better quality category. They include *Agnico-Eagle (AEM-NYSE), *Goldcorp (GG-NYSE) and *Crystallex International (KRY-ASE). We do believe that from here on out that the juniors and exploration companies will be by far the biggest winners, especially those that have been indiscriminately pounded down. Remember, bull markets climb walls of worry. Inflows of funds to precious metals and precious metal shares have been very limited. Once the markets in gold and silver get going everyone will want in on it. THE INTERNATIONAL FORECASTER March 2003 (#1) Vol. 7 No. 3-1 P. O. Box 510518, Punta Gorda, FL 33951 E-mail: [e-mail] or [e-mail]