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Gold is FemaleHarry Schultz US$382 for
a 1
year! subscription •••• For precise gold price guidelines see pg 11: Actions to take--in a Nutshell & Back to the Futures. •••• As we go to press, gold is testing its 50% retracement level. I am doing some selective buying here in the strongest relativestrength gold stocks (like AEM, AAUK, AU, GAM-T, & especially: TEK-T, VYE-T, & YRI-T). If the correction goes a bit deeper (eg, 480), I'll buy more as this is a charity-zone, where U usually get quality merchandise at a slight discount, having proven earlier that the bull mkt lives. Sell/avoid the under-performers, just as U would in industrial stks. Weak stks are weak for a reason! Being in the gold biz doesn't give them Teflon. Gold shares are currently outperforming bullion, so gauge your trading accordingly. Use HUI & Schultz Gold Index & our Advance/Decline Line as signposts, not the gold price! ••• Japanese
buying triggered gold's price breakout. They're gung-ho for gold.
China/India also buying vigorously of late. Russia hoarding it.
The West is stocking up on paper; the East on gold. Guess
who will laugh last? •••• Banks stopped selling gold. Japan buying was partly as a hedge against a weak yen; now yen has reversed, which helped trigger the gold price correction, unhedging. ••• Dubai, called the City of Gold, is a major physical gold trading centre, has opened a gold futures exchange. Its 1kg bar contract is smaller than the 12.5kg bar traded in UK, & better suited to the region's jewelry trade. Later they'll do silver, oil & steel futures & gold/silver options. JP Morgan plans trading there. In 06, Dubai mkt will be open 13hrs a day, 7days a week, so U can buy/hedge on weekends, a long needed service! They expect gold futures volume to hit 10-15k contracts a day. Dubai's time zone is a plus. When Tokyo closes, there's a time gap til London & then NY open, when traders are exposed. Dubai is, of course, taxfree. •••• Friend Hugh Hendry sez, on CNBC: gold isn't rising mainly for inflation, rather in fear of the integrity of financial mkts. Amen. He adds: it has nothing to do with jewelry! I said in Gold
Charts R Us in Nov that gold is not sexless. I revealed
gold is female. I pointed out that Gold is as enigmatic as the
female gender/species, God bless 'em.  George the giraffe & I hope '06 is a kind year for U, my nieces & nephews. God bless U.
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Uncle Harry
D (for Durable) Schultz 