GOLD THOUGHTS
by Ned W. Schmidt, CFA, CEBS
Schmidt Management Company
June 27, 2007

Good morning sheep! All of you with money in hedge funds, that gave money to your alma mater so they could speculate in hedge funds, and that bought BX on offering, the clippers are ready. Shearing of sheep can now start as all sheep are in the pen. This week they closed the gate, and got out the clippers. Sheep did get lucky in one case. Everquest Financial's IPO was pulled. (New York Times, 26 June 2007). This cunning scheme was to put a bunch of those questionable CDOs in it, and sell it to the gullible public. Such events as witnessed recently with a sponsor and two hedge funds may not be isolated events. Hedge fund/CDO situation perhaps suggests that problems with decision making, portfolio management, risk management, and ethical considerations are more systemic in nature. 

Investors around the world are watching these financial shenanigans, and are selling dollar. Dollar is rolling over, as shown in chart, moving on to a path for a new low. Waning confidence in hedge fund management will exacerbate the situation. British pound at $2 says a lot about confidence U.S.$. Downward slide for dollar means intrinsic value of $Gold is rising. Tuesday, NYC funds pushed up U.S. stock market and sold off Gold and Silver in a sure sign of emotional and financial denial. Markets did not sustain their effort, with the stock market giving up most of gain and Gold finding the summer's bottom. Individuals should be using this selling to add to Gold positions, or begin a position. Remember. Gold investors have U.S. economy on their side. It sells $60 billion of dollars each month. Maybe those foreign central banks might want to invest their dollars in the High-Grade Structured Credit Strategies Enhanced Leveraged Fund. Some partnership interests just might be for sale.

© 2007 Ned W. Schmidt
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Ned W. Schmidt,CFA,CEBS is publisher of THE VALUE VIEW GOLD REPORT. That report now includes a weekly message, TRADING THOUGHTS, to help investors identify timely points for buying Gold and Silver. His monumental report, "$1,265 GOLD", with 255 pages and 98 graphs, is now widely known, and is available at www.amazon.com or from the author by clicking HERE This work has now been read by investors in over twelve countries around the world. Ned welcomes your comments and questions. His mission in life is to rescue investors from the abyss of financial assets and the coming collapse of the U.S. dollar. He can be contacted by Email.