We turn then to the metals market first, noting that in

the past two or three days gold has fallen precipitously

in US dollar terms, but it has fallen even more

precipitously in EUR terms or in terms of the British

pound sterling. When we issued our strong and

“official” recommendation earlier this week to vacate all

long gold positions… which we held only in terms of

the EUR, the Swiss franc, the British Pound Sterling

and the Yen; we were not long of gold in US dollar

terms and we wish to be quite clear about this issue at

this point so as to avoid any and all confusion… we

thought perhaps that gold could fall from €1005 to

perhaps €945-950 over the course of two or three

weeks. We thought a correction of that magnitude

would take at least that long… perhaps longer. Never

did we think it would take less than three days.

However, that is what has happened, and prices have

fallen far enough and swiftly enough to cajole us back

to the long side once again… gingerly.

We shall therefore return to our position previously

held, long of gold firstly in EUR terms and perhaps too

in terms of Sterling. We’ll be even more enthusiastic

about returning to this position should we see spot gold

in US dollar terms trading upward through $1195 later

today, or should we see spot gold holding at or near

$1185 while the EUR trades back down through

1.2330. Either would ramp up our interest… materially:

NEW RECOMMENDATION: