Imagine yourselves back in time and reading this piece by Eric King, sounds alot like today just change the dates and #.

If you were sceptic then, you didn't participate in the bull.

Same applies today, do it now,

Not investment advice.

http://www.usagold.com/gildedopinion/puplavabelieve.html

Gold and Silver's New Bull Market

I hope folks are getting it from the above charts. This gold and silver mania is in its infancy as Russell says and has a long way to go.

Let's take a look at the HUI as of the close today 1/5/2004. Many in the gold camp are talking about the fact that the HUI is extended above its 200-day moving average. Today the HUI sits at roughly 256, while the 200-day moving average sits at roughly 180. So the HUI is roughly 42% above its moving average.

Yes it is extended, but let's take a trip back to the beginning of the summer of 2002. The HUI's 200-day moving average was roughly 155 on 6/4/2002, while the 200-day moving average on the HUI was roughly 82 at the time. So the HUI was trading 89% above its moving average!

So if the HUI were to simply equal what it accomplished back in the beginning of summer of 2002, it would be trading today at slightly above 340!!! Will the HUI get to 340 on this leg? Who knows? I am simply pointing out that yes, things are extended, but it is possible the HUI can get a hell of a lot more extended before this leg is over.

What should investors get from all of this? I don't know. Everybody's brain works differently. But hopefully it opened up some minds of folks who are bearish or constantly trading themselves out of this secular bull market and looking for the pullback that never seems to come. Smart money is accumulating on pullbacks in gold and silver stocks as the weak hands are shaken out of what in all probability will be a very, very long secular bull market in gold and silver shares.

Russell summed up the situation succinctly in his daily commentary today:

"A good day all around for the precious metals and the precious metals stocks. All the experts continue to predict a correction. Is there any such thing as an 'expert?' Meanwhile, the public is oblivious of the metals. Pretty fascinating situation. I bought more PDG and NEM today." -- Richard Russell, January 5, 2004

Subscribers to Richard Russell should already be positioned long gold and silver and long gold and silver stocks at much lower prices. Their job is to hold on and not get bucked off the bull too early. If you are not a Russell subscriber, then sign up. The $250 will be some of the best money you'll ever spend. Russell has been studying the markets for almost half a century and is a living legend. Go to www.dowtheoryletters.com to subscribe. Think of it as a New Year's resolution.

Believe it. Live long and prosper.

Eric King