Dear Friends,

It is time for another reality check.

Those of you who are selling your gold and gold shares today are doing so because the dollar is in demand today based on the statement by the Russians. This shadows the previous statement by the Chinese concerning a preference for an IMF basket currency debt rather than US dollar debt.

That means the dollar is rising because the Russians and Chinese do not want dollars due to its depressing impact on Treasuries and the rise of rates there.

You are therefore agreeing that interest rates will attract the Russians and Chinese back into the dollar.

If you think this is anything more than the madness of the crowd and the gambleholics that inhabit the markets, you have lost your mind with the rest.

Today’s statement by Russia is a dollar negative event without any question whatsoever. Once all the hedgies and algorithms get them long up to their eyeballs it will be followed by more culling of their ranks.

Stay the course and ignore the ignoramuses. Use reason as your guide, not raw emotions.

Survival takes courage.

Respectfully yours,
Jim