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(A belated) thanks for the ping, SLL.

The POG has increased, at one point, another ~1% since you reported it at $677 a few days ago.

There’s mosty definitely a change in the air.

I have held a certain gold mining stock for about three and a half years now

For a while, I held about 20% of my shares as ‘trading shares’ and would trade in and out of them rather predictably. It was often possible to tell when the stock was at or near a short-term high, at which time it was time to sell those trading shares. Then, when she re-traced 8%-10%, I would buy in again and wait for the next short-term high.

I probably repeated that pattern several dozen times over the years, and did well by doing so (not to mention the on-paper profit in the 80% long-term-hold shares, which have seen significant appreciation over the years).

Over the past several weeks, that kind of short-term top has been hard to pin down, mainly because each potential top tends to be taken out again within a day or two. (I have several times wound up buying back my trading shares at, or higher than, my original sell price.)

The recent rise in the POG itself has seen very few recognizable pullbacks. Even today, the headline in Kitco’s major ‘news’ story (‘Gold Futures Retreat as Iran Concerns Ease’) ... and several analyst reports that gold and silver are overbought ... didn’t pan out. The POG stayed relatively stable in spite of the negative predictions, and is up ~$4 in Asia tonight.

Ahmadinejad's letter to President Bush changes nothing regarding Tehran’s burgeoning nuclear program. In addition, the dollar continues to slide down the path to eventual worthlessness. Our government does not believe in living within a rational federal budget. Our trade deficit continues to deteriorate. We are involved in an open-ended war with madmen who are not confined within recognizable borders.

Where better to be invested than in gold (and silver)?

The recent action of both the POG and PM stocks suggests that we are entering a new phase in this bull market – that institutions and investors are beginning to pay attention to the once ridiculed ‘gold bugs’, and that those who hold PM shares are no longer allowing themselves to be divested of their holdings by claims that the bull is slowing down, or the metals are over-bought, or a madman is making meangingless peace overtures to the west.

This bull has just begun to run.

(No response necessary. Going to be off-line for a while.)

~ joanie