20 May 2006

Metals and Mining Shares – What A Difference A Week Makes! - GoldSeek.com

Metals and Mining Shares – What A Difference A Week Makes! - GoldSeek.com: "By Peter Grandich

On Thursday May 11, 2006, at 1:00 p.m., I issued a special Alert that said, “An overbought/oversold indicator of mine that I’ve used since before the 1987 stock market crash, has given the most overbought reading ever for both copper and gold… I’m going to suggest that risk in gold, silver and copper is now equal to, or much higher, than reward in these markets for the near term. The long awaited sharp correction is within hours or days away at the most.”

I appeared on Canada’s “Report on Business Television” (by far, North America’s best financial network) on Friday, May 12th http://www.grandich.com/robtv.05.12.06a.htm and stated that I believed the day before began a correction that could see us drop 10% to 15% in just days or weeks (go to about the 56 minute mark in the interview).

I gave my thoughts to several media outlets, but my comments to the Daily Telegraph –U.K.,
http://www.grandich.com/docs/telegraph_05-15-06.pdf created the most “fan” reaction. I guess that was due in part that the reporter used this headline “Unsustainable gold on the brink of crash, says US metals guru.” Never do I recall using the word crash to describe my outlook, but I assume he took it upon himself to assume that was my theme after I told him. He quotes me in the article:

“I think there will be a very short, sharp correction of 10 to 15pc, in the worst case reaching a floor of around $575 an ounce.” I hardly think that’s a crash.

It’s been an interesting week or so, to say the least!"

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