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February 11, 2004

February 11, 2004

THE DOLLAR RALLY IS PROBABLY OVER

We are writing this memo to say that the dollar rally is probably over. It’s possible the correction in foreign currencies could last a little longer if pronouncements from European central bankers continue. However, with both Treasury Secretary Snow and Fed Chairman Greenspan endorsing a lower dollar it probably sends the dollar down to new lows. Our old price objective has been $1.35 US per Euro. After it reaches that price we will examine the fundamentals to set a new price target for the Euro.

Fortunately, we have been buying gold and other precious and base metal stocks during the decline so we are well positioned for the dollar to continue its decline. Our favorite areas are copper, silver and of course gold is, as always, a long-term buy in our opinion.