All the tools in the dirty bag of tricks are blatantly being used now...with horrible US trade and deficit numbers,unemployment etc...the $US goes p? Hah...well, everyone sees through it. Watch for the DOW to soar tomorrow as the big lever pullers levitate it. Here are some of todays goodies:

Jim Sinclair:

“…100,000 ounces of mineable on surface gravel is worth (net cash flow terms) as much as 1,000,000 ounces of deep gold mineralization.”…

... let’s see, SFMI has 500,000 plus tons of above ground “gravel” with anywhere from 6 gm/ton to 2 oz/ton ( 62 grams)…that’s 100,000 oz to 1 million oz. …or worth as much as 1 million to 10 millon deep gold mineralization…Holy Cow!!!!

The Shift Between Gold Share Categories
Posted: Oct 19 2009 By: Jim Sinclair

There are various categories of gold shares.

1. The most popular are the majors…
2. Junior producers are entities that have opened production facilities which are modest or not yet at full capacity... HMMMM...like SFMI?

3. Exploration and development issues have been the favorite of the mix of all gold share categories for short operations.(like SFMI). The gold explorer business is capital intensive, so if the price can be depressed, the short starves the company of its ability to finance. Before you can have production you must pay all the costs of exploration which usually comes from seed capital. In the last five years there has been practically NO seed capital anywhere for gold. But wait! SFMI has proceeds form produxtion so it is in a very unique position!

There are other categories and as a company transmutes between categories. In this unprecedented gold bull market price adjustments should occur with category transmutation of gold entities as they climb the ladder of success…

There is the exploration company that begins production and therefore moves up the scale toward the category of junior producer. Usually this is accompanied by improvement in price as many investment entities will not buy non-producing exploration companies.

There is the exploration company that has success and will be evaluated by the quality of its success and deal making. Historically success and deal making for such a company increases interest in the company.

It has been almost 30 years since any meaningful segment of the general marketplace has taken an interest in gold shares...

At the beginning of a gold bull market it is gold itself, then Major Producers that perform.

As gold makes its way past $1000 to $1650 and beyond, the order up to now has been Major Producers and the top half of Junior Producers benefitting with while the short attacked the bottom half of Junior Producers and all of Gold Exploration entities. Watch closely now as a shift takes place.

No short of any viable gold share can be happy this evening even though across the board they are still short and in some cases still sitting on the price.

You might have noticed recently in the heavily shorted gold situations in the bottom half of the Junior Producers and many of the viable Gold Exploration entities that there was an at the close and after close attempt to destroy prices when in some instances million of shares were sold and bought. This occurred in some cases on volumes 18 times larger (volume on the day) than the previous norm. Exchange short figures indicate that these were long buys and only minimal short covering.

The leverage is always on the bottom side of the category scale, so I anticipate that the bottom half of Junior Producers and the viable companies in Gold Exploration entities to outperform the top half of Junior Producers and Major Producers as the price of gold continues higher in late 2009 and 2010.

History tells us this is how it has always happened, and I believe it will again.

That is called leverage coming out higher gold prices, high in ground values, higher profits in the start up mining and in many cases much less shares outstanding than in the Major Producers and the top half of Junior Producers.

Gold shares presently in the more leveraged categories have practically no participation compared to other hard asset equities such as energy thanks to the action of the shorts.

In general it is more than likely the wrong time for a long suffering long to throw in the towel, but many are and will.

Bits From MIDAS:

Outside of the DOW, gold has to be the most watched barometer of US financial market health (and world financial market health). It cannot be allowed to do what it ought to around a Fed cave meeting. Larry Summers won’t stand for it. This is not exactly Shoot the Messenger stuff … just muffle it for the time being….

*How do record low interest rates, a collapsing economy, a battered Dow, and an easing Fed equate to a soaring dollar and a sat-on gold? Answer: our government is in a total panic … sort of a freak out, as they have no answers to correct the economic dilemma the US is in…

TODAY WAS A HUGE WIN FOR US GOLD BULLS. The bums did all they could to put gold in the toilet and it did not work. Yes, they kept the price well off its close yesterday and below the key psychological $1200 level, but The Gold Cartel did all they could to seriously bury gold, and they failed. The CNBC screens were full of commodity and stock market negatives at the Comex close. The only winner: GOLD!

Today was NOISE … Larry Summers’ kind of noise. While his crew failed in their efforts to bury the gold price, they had a minor win with the likes of a CNBC headline: "Gold Safe Haven Bid Fails." It is only a matter of days or weeks before their next headline is: "Gold Safe Haven Bid Returns."

Not only did gold close higher today over yesterday’s Comex close, it did so with the orchestrated dollar going through the roof. While you will hear none of this from Planet Wall Street, today was one of the most positive days in a decade from a Planet GATA point of view and sure brings us so much closer to when the investment world wants in on precious metals investments.