Uncle Jim

My Dear Extended Family,

Your greatest enemy now is your emotions. In fact it is the only tool that can be used against you.

If you have not taken margin your worst case scenario is the pain of quoting. I have suggested at various times since $248 gold that you dig a hole, jump in and pull a rock over your head. Each time I did I was derided thoroughly by the shorts. Each time I did the price of gold went significantly higher.

The price of gold is going much higher. The problems that give gold its reason to go higher are growing, not waning.

The entire thesis for gold is illustrated by the three Skiers posted on the weekend.

There is no political will for the results of an EU break up. There is no way the Fed is going austere as the austerity is exploding in the face of Europe politically.

There has been no decline in the amount of notional value of OTC derivatives outstanding. If you think Morgan is the only derivative problem out there you are quite wrong.

Stay the course, stop looking every few minutes, and quiet your emotions. Gold will trade at and above $2111 after this reaction is completed.

Respectfully,
Jim