Please understand that this missive contains a lot of "ifs" and "dreams" along with its facts.

Alf Field recently said he was going to quit producing his occasional posts re the gold market and price. That is a shame because he has been quite accurate to date. He did, however, post his final expectations for the gold price based on his technical analysis in update 23. His most recent "back of the envelope" calculations are in the $2500- $10,000 range.

JimSinclair recently redid the work he did to predict the top of the 80's market in today's values. He says that Alf Fields numbers are very good and that his recent calculation amounts to roughly double Alf's projections.

James Conrad recently wrote a piece published on the "Manipulation of the Gold Price." He estimated (among other things - its a good article read the whole thing) that the gov't will not allow the Dow to fall below 8000 for any extended period of time as that would force the insurance companies to acknowledge huge prtfolio losses that would make them insolvent and the law would require their bankruptcy. His estimate of where the gold price will be is $7500 to $9000.

In times of severe monetary crisis the Dow/Gold ratio generally hits parity (i.e. the price to buy one share of all the Dow component stocks will equal the price of one ounce of gold). Since this is a major financial crsis we could hardly expect less. Hence if the Dow remains above 8000 points, we can anticipate the price of gold rising to meet or surpass it.

Notice how all four different approaches approximate the same price.

Now, since the price of gold has been manipulated we can expect that its rise will outpace the general rise in inflation that will soon be coming (soon as in 6 months to 2 years out) our way. Tyhee can produce gold at roughly $400 per ounce. We cannot expect they will be able to do that with gold at $8000. But neither should we expect that the ratio of production costs to gold price will remain at 50% because gold has been manipulated.

So let us just guess and say that with a gold price of $8000 the production cost will be $3000. This leaves, under optimum pricing a profit of $5000/oz. for Tyhee. Obviously not all the mined gold will produce such a fantastic profit margin per ounce. At $3000/oz. with 2 mil ounces we are talking $6,000,000,000.00 and let's allow for some more dilution to make the calculations easy. With 300,000,000 shares; the $ per share value is near $20.00. But let's not forget that it will virtually impossible to obtain physical metal (its approaching that condition already and no one even knows what's happening now among John Q. Public). Add in the only game in town and the mania factor and prices per share of Tyhee could probably get to as high as $50.00 or multiples thereof.

We've all heard of stocks in the 80's that went from pennies to $100's. Certainly Tyhee does not currently have the resources of stocks that did that in the 80's but there are no elephant finds in the gold industry anymore and Tyhee has a SOLID property. Add the oddity of the ridiculously low prices of today and the coming inflation of tomorrow and I think the final results will be about the same.

P.