wmeubank@ocp.kcmo.com
THE REAPER
P.O. Box 84901, Phoenix, Arizona
(November 13, 1997) METALS: How near is the gold market to discounting future short sales/hedges by the central banks and the mining industry? Are Asians also selling gold during the currency crisis? Weaker platinum prices are pressuring gold and silver. When platinum still goes down and gold and silver hold, we will know we are on bottom. The U.S. mint using 100,000 ounces of platinum a year, 2% of annual world-wide platinum demand, to mint platinum Eagle one-ounce coins will be supportive. Weaker physical demand for copper in the Far East is increasing inventories and warehouse stocks of copper. The trading public is too bearish on platinum and copper. Most important, is the fact that my turning points for gold and silver project major lows for the last half of November. (There is only a 20% probability of an acceleration down in the last half of November.) Gold and silver cycles have also turned bullish in November. Silver stocks are at a 12-year low.
RECOMMENDATION–Investors who purchased core holdings of gold and silver coins and mining stocks on weakness–hold. See the long-term investor's portfolio. Futures investors go long December gold, buying on a stop and strong close above $316 with a $309-open protective stop, Futures investors go long December silver, buying on a stop and a strong close above $5.00 with $4.79 open protective stop, Add to long positions on a strong close above $5.10.
R.E. McMaster, Jr.
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