Yesterday, we've suggested entering the following stop loss orders (in other words we suggest selling the following assets if the price goes below the below mentioned levels):

Gold: $1,380 Silver: $29 HUI Index (mining stocks): 565

All three levels have been hit and consequently we would like to confirm that we do not suggest having an open speculative long position at this point. At the moment of writing these words gold and mining stocks trade more or less at the stop loss levels, and silver trades about 75 cents below it.

We have received questions from our Subscribers regarding the current move up, and we believe that explaining our views would be useful here. The 2 most common (and important) questions are:

1. What if I didn't exit the market yet with my speculative capital?

In this case we believe you can still do it right away. "There's always the next train" - if we get a buy signal we can always re-enter long positions. As of today, the risk/reward ratio is not favorable enough to keep any speculative position.

2. Should I short the precious metal market now?

As mentioned above, the signals are not bullish enough to justify opening a long position nor are they bearish enough to justify a short one. Yesterday, we've mentioned that another move higher on relatively small volume would confirm the short-term decline scenario. This could be used to enter a short position.

The above comments regard the speculative part of your capital; we do not suggest selling your long-term gold and silver investments.

As always, we will keep you updated, should anything change. The next Premium Update is scheduled for Friday, Dec 10th, and among other things it's going to include the graphical representation of the points made above, and the updated version of our junior rankings.

Thank you for using the Premium Service.

Sincerely, Przemyslaw Radomski