Precious Metals Market Timing
Patience and Tools

Ron Rosen
Nov 16, 2005

"This power, this force, this tidal movement is irresistible. Once it starts no individual, no collection of individuals, no central bank, and no collection of central banks, no government and no collection of governments can stop it or halt its movement to its eventual destination."

"Fully understanding and internalizing the fact that once it starts there is nothing that can stop it is what calms the emotions and tends to allow one to relax and let the profits add up."

"There is one magnificently simple reason why once it starts nothing can stop it.
"The tidal movement will never start if there is anything that can stop it!"... R.Rosen

Like clockwork the tide goes out and the tide comes in. Our goal is to know when the tide has turned. In the markets it is knowable to a high degree of probability but not certainty. Therefore, our best allies are Patience and the tools we use to gauge the turns.

LOW TIDE	NOTHING CAN STOP THIS

We are most fortunate to have the charts of gold and the gold share indexes set up in such a way that we can not miss the turn in the tide. I best add - to the highest degree of probability! I add the words "highest probability" not because of any Law, but because that is all we can ever obtain before the fact. In addition, it is most dangerous to our pocketbooks to believe we can predict the future for certain.

A new closing break out above the twenty three year overhead trend line for gold bullion and a new closing high for the HUI will be our signal. Some analysts say the markets are set up to always deceive us. I believe if any deceiving is done we are doing it to ourselves. If one chart breaks out before the other some may consider it a false move and a non confirmation.

However the Delta turning points tell us that gold and the gold shares are not always on the same exact turning point or time schedule. We can use this information, if necessary, to avoid being deceived by a breakout by one but not the other. The gold shares and gold share indexes all have the same turning points.

My recent reports have stated that I believe we may have one more move down in the HUI and further correcting in gold bullion before the tide turns. If so, this will enable you to purchase some gold and silver shares and coins at lower prices. For those who have held through this entire two year correction there is not much time left before the tide turns.

The monthly chart of the HUI shows that the Delta long term # 12 LOW is due in mid January 2006. The standard deviation for this low shows a range for arrival between December 12, 2005 and February 8, 2006. A break below the major rising trend line will provide a great opportunity to buy shares at distress prices. We have been going through a between phase correction for about two years. The major rising trend line for each phase is usually, not always, broken before the next phase starts. If that happens this time, we may witness some panic selling. I am not hoping for panic selling, I just want us to take advantage of it if it does happen. Either way, we want to be long when this next phase starts.

I will start recommending multi week trades when we know the next bull phase has started. The gold ETF will obviously have the same turning points as the Delta charts. The trades will be based on the medium turning points which are multi week time frames.

When the time arrives to enter, reenter, add to positions and trade, I will suggest we stay with known mining shares. I have no doubt that the time will come when small exploratory mining shares have an explosive move up. What I have learned to doubt, from the past, is the amount and quality of the gold ore they may claim to have in the ground. In the beginning of the second phase those investing entities that have large amounts of money will be directing that money into the quality or better known mining shares. Some of these entities are restricted as to the quality of stocks they can buy. I will be suggesting that we do the same thing. If the HUI can appreciate 750 %, in the first phase, over a three year period, that's the place to look for known and proven performers. The second phase will have more participation and produce better results. Better than 750 % should satisfy most of us.

I will be creating a hypothetical portfolio of stocks that attempts to match the HUI, but it won't be exact. It will be close enough to allow us to use the HUI as a barometer of the performance of this portfolio. The results will be posted with each report. I will post this and the number shares bought in each company when it appears the second phase has started. I have listed all of the shares in the HUI. The trades in individual stocks will include Newmont Mining and other quality shares that prove they are good trading vehicles for the second phase. These are all of the stocks in the HUI index. I will post the charts of these shares routinely once the second phase starts. The percentage weighting is what I will be creating when I list the hypothetical portfolio.

Stay Well,

Nov 12, 2005
Ron Rosen

email: rrosen5@tampabay.rr.com

Tee charts reproduced courtesy of The Delta Society International.

321gold Inc