Beginning next Saturday, Rick’s Picks will answer questions from readers in a weekend edition. (If you’d like to have Rick’s commentary delivered free to your e-mail box each day, click here.) Meanwhile, the letter below, from a long-time subscriber, is filled with interesting and provocative observations that I’d like to share with you. He writes as follows. Hello Rick. Great comments. I like to think of Bob Prechter's DJIA target of 400 more in terms of DJIA/Gold. If gold is $5000/oz, then the Dow will bottom at 5000; if gold is $400/oz, then the Dow will be 400, and thus the infinite range of potential bottoms in- between. Trying to pick any one number will make you go insane, like predicting the weather, and it will get your mental focus tied to a target that may be moving daily. Not healthy. GOLD & SILVER: Our charts are showing patterns that are historically reliable, putting silver at $3 /oz, gold at $450/oz and the HMU (Canadian mining EFT) at 1.50. HMU was $35 six months ago, and if this latest bottom is a wave 3 terminal sequence and wave 5 is extended like it often is in commodity prices/equities, it is possible that there is a 68% loss ahead for people going long today at 4.78. For instance, according to our Elliott Wave analysis, the bottoming number for that great silver miner, Pan American Silver (PAAS, currently trading for US $12.54 US) is 0.90. You may laugh at that number, but most of the Eldorado and Bema Gold share I bought in 2002 were at prices between 0.65 to 90 cents in 2002, and they were $10 stocks in the mid 90s. It has been very advantageous to be a former miner, then geotechnical engineer, and finally petroleum engineer who has
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