wmeubank@ocp.kcmo.com
THE REAPER
P.O. Box 84901,
Phoenix, Arizona
(June 26, 1997) METALS: We have the politically correct scam–Social Security. We have the politically incorrect scam–Bre-X. Go and figure. If the Japanese Prime Minister is bullish on gold, who are we to argue? We work for him. The Japanese hold the mortgage (debt) on this country. We'll see if this big gold turning point comes between now and October. The real test for the precious metals will be when Russian shipments of platinum and palladium resume. This is projected to occur soon. Russia is the largest producer of palladium and the world's second largest producer of platinum. Premium indications still suggest tightness in platinum and palladium. Silver has experienced drawdowns in COMEX stocks for over a million ounces inside of a week. There is strong demand for silver. More possible central bank gold sales, concerns about the EMU and growing mine supply continues to make gold the least attractive of the precious metals. In copper, LME and COMEX stocks have increased. The trading public became too bullish long technically and psychologically. The copper correction is underway. Gold and silver have held well while palladium, platinum and copper have had their corrections. The rising open interest on the price decline in gold suggests gold is under accumulation. Technical patterns in gold and silver suggest basing. The next bull market though may be in rare date U.S. numismatic coins.
RECOMMENDATION–Investors who purchased December 1997 gold and silver call options–hold. Futures investors may lightly buy December gold with $338.70 open protective stops. Futures investors may lightly buy December silver with $4.67 open protective stops. Investors who purchased core holdings of gold and silver coins and gold stocks on weakness–hold. Futures investors take remaining profits on July platinum long positions.
R.E. McMaster, Jr.
Added to the WWW 07-04-97
Last updated on 07-04-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com