I wondered what our share prices would look like, after the metals prices took such a drubbing on Friday. I was pleasantly surprised. Though they declined, they were not hurt near so bad as I had feared. That, in itself, is another sign of a probable Bull Market, where the price of the metal can take such a hit, but that the share prices don’t look too much the worse for it.

If it is, indeed, a bull market, then a better buying opportunity will be presenting itself. What do the individual stock charts look like for the gold and silver companies I’m holding?

Since the metals and shares declined, we want issues to have declined on either average, or light volume as these did: FSM, PAAS, KGC, AUY, NGD, AGI, ABX, SLW, SGDM, AU, CDE, RIC, RGLD and GLD.

And, we’d rather not have any to decline on big volume, but these did: EXK, SA, HL, AG, GDX and SLV.

That the majority got off easily, tends to say that the back-up in price, or correction, as they are called, is orderly, and nothing untoward would appear to be happening. It helps to confirm that a Bull Market is indeed in place. It could last a while, as I reported that the Commitment of Traders report indicated that too much bullishness among futures traders had arisen in the metals just since they last bottomed. That could take awhile to work off. I can wait.

And, as the spot price of the metals is up some $4 and change Monday morning before the open, we can probably expect the mining shares to open somewhat higher as well.

Here’s to the accumulation of real wealth!
Harold F Crowell


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