over at the ECU site post the rip off over there. I excluded my preamble on ECU. SFMI is interesting in one particular way...management has control of the shares the way I understand it...please correct me if wrong. That should mean that SFMI isn't vulnerable to a hostile acquisition the way so many will be...and boys and girsl... the acquistions are coming hot and heavy over the next year. So, no matter how low the price is to value revealed, unless there is some Gov. interference, looks like SFMI could be fairly solid.

Jim Sinclair and Dan Norcini gave us all the info we need in their King World News interview on June 19th.

The hedge fund short selling and lengthy suppression to extremes…of the woefully underperforming mining shares is coming to and end as we are very near to the move to the other side of the trade…when the shorts will have to be covered. The selling by the hedge funds has run against fundamental values for far too long. As prices consolidate they become more attractive to acquiring entities. This means the short funds will be fighting with those acquiring interests. Looks like ECU missed the boat on that one as one of the hedge funds seems to get it. Its time to make it work for us now.

So, in some respects we have the illusion of entropy whereby irreversible disorder has seemingly descended upon the JPMs and has been successfully perpetrated on the retailer. Okay, theft. In order to reach for equilibrium the pendulum, gravity, the fundamentals always reassert themselves. When prices are disconnected from the strong surge in supply and demand they will push back to reflect true value….and the gargantuan hedge funds will trip over their own paper pricing greed.

Large entities are appearing on the scene (China) that now must capitalize on real value…multiply those ounces-in-the-ground by $1000 for the value we keep babbling about. So on the one side we have the hedge fund destroyer and in the other corner we have the acquiring “interests” with building desire. Watch as this begins to play out in Africa, China and all other areas excluding the US. Short sellers will soon push hard to cover. China for one, wants to dramatically increase gold reserves and it will acquire gold and take it off the market…as supply decreases. Of course there are also the usual culprits such as the central banks, “no longer selling”.

The acquisition binge is coming as the big majors salivate for additional resources and the share prices of these targets will rebound so violently that the shorts will get caught offside and suffer huge losses. There will be selective acquisitions that will erase low prices. There will be a mania for shares as the deflationary mindset changes to an inflationary one with the $US falling through major support levels. PM/JPM shares have a long way to go to reflect true value. The XAU/gold ratio is back at 2008 levels when gold was near $700 during that credit crisis. Many shares are trading down at those levels now with gold at $1500.Who sells such extreme value??? The more they sell the lower the price goes…and the more supply is curbed, demand is increased...and the lower the risk for the buyer. So, shares that buy gold at $1000 when the spot is $1600 are a huge discount to the price of gold. Chinese and South American miners and explorers are most attractive now.

The seventies in comparison were child’s play…a modest dress rehearsal for what’s coming. The demand today for gold is extraordinary as gold is devoured at the discounted prices the shorts have created. These shorts have created bargains in companies that they don’t realize. This secular gold bull has been a painful nightmare for shareholders.

We are approaching the late nineties tech phase in the PMs/JPMs…the Pac Man phase. Management must have a majority of shares outstanding or adversarial acquisitions will happen as the companies are sold…so DD is crucial.

Shareholders must remain centered here as prices have been slaughtered by the hedge funds that have created bargain basement prices for gold.

WHY SELL PROMISING PROPERTIES AND GOOD POTENTIAL AT SEVERELY DEPRESSED PRICES?????