I don't think we are seeing shorting in LGL. Only a loony would...

I don't think we are seeing shorting in LGL. Only a loony would do so at this level. I think we are seeing a major foreign insto seller or three being absorbed by general value buying by patient value institutional investors looking at a $4.00 + price on present gold prices in 12 months time plus frustrated traders lke me. If as we more speculative types hope, inflation builds momentum, oil keeps high, Middle East concerns grow, we may well get the overdue spike in gold to take it well above its current high. This is not the ideal seasonal period but we are entering the hurricane season.

Once the mega selling dissipates, LGL can gap back up. A one day 10% move is quite in order, almost inevitable, but picking when is a problem. I think we are close.

Risk is the markets crap out in 1973/4 style and gold stocks simply don't fall while all around them do. But at the least we sort of preserve our funds for the switch back into more sensible stocks in say 6 months time.