Safehaven | The New King of Money, HUI Breakout

September 22, 2005

The New King of Money, HUI Breakout
by John Lee

Gold $472 HUI 243 APE.v 0.43 SVM.v 3.95

HUI has gone up 20% since August 31, is it too late to get in?

Looking at the following chart

I'd say the HUI party has actually yet to get started. Now let's take a look at gold.

Gold has broken out in dollar, euro, and swiss francs. Coupling the breakout with traditionally strong season for gold, it's not unreasonable to assign a $500 price target for 2005. The target can actually be reached as early as October. And keep in mind it took mere weeks in 1980 for gold to reach $850 after the $500 resistance was overcome.

In my opinion HUI will follow suit very quickly by breaking out of 250 resistance to go as high as 500 within 6 months.

I am particularly fond of silver and you can find my silver write up at
http://goldinsider.com/ape.htm
http://goldinsider.com/8_11.htm

John Lee, CFA
www.maucapital.com

John Lee is the founder and principal of Mau Capital Management and the portfolio manager of a mining equity hedge fund. He is a CFA charter holder and has degrees in Economics and Engineering from Rice University. Mr. Lee has a keen interest in the history of money and economics, and has previously studied under Mr. James Turk, a renowned authority on the gold market.

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