This stretch in the range of $750 has been very tame in comparision to the swings of weeks prior. In a context of worsening economic news, lost confidence in bailout interventions, and a global financial panic, it all seems to remind me of the early summer, when people were starting to talk about the housing bubble bursting, about banks screwing it all up "they know Nothing!" and cracks starting to apper.

Now we've seen a counter-intuitive run up of the dollar and gold not taking off. But that run up of the dollar has been explained as a side effect of the liquidations / repatriations of US money. That this must end at the point where the sell off runs out of things to liquidate. Maybe we'll be there with a 7200 Dow, or maybe 5600. But at some point it will turn.

Seems to me that this steady period of gold at $750 is a precursur to a real shift of sentiment that all bets are off. If this change of sentiment moves into gold, and we all here believe that should happen at some point, imagine how much excitement it will generat, as gold will be the only thing going up. With low oil prices to rebound, and a falling US dollar, gold may draw in investors who have suffered huge losses and now have little else to lose. They may behave like I've done a few times in the casino, increasing the size of my bets, after having become a few hundred dollars down, hoping to score big and get even again. One of them, a couple of years from now, will pay me $20 for each of the TDC shares I'll sell. I will have long forgotten the pain of Oct - Dec '08.

This is where our patience and philosopical commitment to gold will pay off. We have lost nothing, as long as we don't sell our holdings.

That calculation someone posted, of TDC gold being valued at 40cents!

Turn, worm, turn!

I feel that it's going to start moving by the end of next week.

When gold goes up, the producers will see big gains first, but once the juniors start to pull out of the gates, their gains will outstrip the majors.

SKELEG