INSIGNIA CONSULTANTS

Precious Metals Market Update for 29th November, 2007

GOLD

SILVER

COMEX GOLD FEBRUARY FUTURE -- $810.0

COMEX SILVER -- MARCH FUTURE -- $1450.0

EXPECTED TRADING RANGE

GOLD FEBRUARY 08   -- $798.0 -- $838.00

SILVER  MARCH 08  -- $1404.0 - $1476.00

COPPER AND CRUDE OIL -- EXPECTED TRADING RANGE

COPPER MARCH 08   -- $296.00 - $320.00

NYMEX CRUDE OIL   - $92.80 - $19.60

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COPPER MARCH TECHNICAL LEVELS

SUPPORT

RESISTANCE

S1

S2

S3

S4

R1

R2

R3

R4

$269.00

$277.00

$287.60

$292.30

$307.60

$311.50

$317.60

$320.00

GENERAL MARKET CONDITIONS

November is coming to an end. Precious metals and base metals have traded in opposite direction. What next in December? In the first three weeks of December we expect precious metals, base metals and energies to rise. In the last week, there could be year end profit taking ahead of Christmas and New Year vacations which will give opportunity to invest once again. The Fed cut will boost equities and base metals. Volatility will fall in December. Once again energy prices and the US dollar will be the key for every market. In December the US dollar will gain if and when there is short covering of US dollar shorts. I find zinc an attractive investment for December as the risk to return ratio is in favor of the buyer. Interest rate cuts globally in December and in 2008 will boost demand for base metals and zinc is highly oversold.

Silver has unperformed so far in 2007. Please do not write off silver. Silver should outperform gold in December 07 to February 08. In 2007 silver got bogged down due to the over hype. Traders went heavily long in the first quarter of 2007 only to incur losses. Silver's hype is over and investors will realize that silver provides more value than gold or any other precious metals in the medium term to long term. The prime reason for gold's rise is the transition from the US dollar standard to gold standard, apart from fundamentals of demand and supply. Whereas silver is an industrial metal as well as a precious metal. There is a dual usage of silver. Silver's demand as an anti pollutant has been growing from use in washing machines to heavy industries. Silver will also act as alternative to platinum. Those who prefer to wear white jewelry and cannot afford platinum will resort to silver jewelry. Silver jewelry demand will only rise.

Since silver has dual usage, greater volatility than gold or any other precious metal is logical. I will prefer silver as a long term investment than gold; however one's portfolio in metals should be diversified. Please do not keep all your eggs in one basket.

DAILY TRADING STRATEGY

Remain on the sidelines despite the bullish trend and buy gold on any $10 dip or sell on any $10-$12 rise stop loss $4 each. Buy silver on dips stop loss below $1440

GOLD -- FEBRURAY FUTURE

A close over $796.80 tomorrow will result in $847 and $888.20 in December. Only a daily close below $775.20 will result in bearish trend in December.

SILVER -- MARCH FUTURE

Only a daily close below $1398 will result in silver in a medium term bearish zone for $1325. Intra day silver to break $1478 to be in bullish zone and target $1526 once again.

COPPER -- MARCH FUTURE

Copper breaks and holds $307.60 then $311.50 and $324 are the targets. On the lower side, intra day as long as $292.30 holds, downside will be limited.

NYMEX CRUDE OIL --  FUTURE

As long as crude oil holds $87-$88 will target $100+. At lower levels value based buying will support crude oil.

HAPPY PROFITABLE TRADING