- The down slide in gold price for the past few weeks is only temporary. The next 2 weeks of end of year trading should be ignored. End of year market moves when most people are on holiday can be very volatile. The slide towards $1080 is a healthy and normal market correction. The gold cartel are driving gold prices lower to shake off weak bulls. Bob Chapman does not think it will last much longer. Happy days are around the corner for gold bugs! Gold is going much higher than most people imagine possible!
Disclaimer – I am not a financial advisor. This is not an advice to buy, sell or hold any stocks or bonds or any precious metals. I am long gold and silver.
- This is an excellent interview of Mr Gold: the legendary Jim Sinclair. Jim Sinclair is the Numero Uno of all independent gold traders. He traded gold all the way to the top in 1980. He is the founder of www.JSMineset.com and Chairman of Tanzanian Royalty Exploration. He has been forecasting gold correctly since the bottom of about US$250/ounce. In the interview, he explains what is really going on behind the scenes in the gold market. Interviewed on 21 December 2009 on KingWorld news. Gold bugs take heart! Happy days are just around the corner! Click on the picture above to go to the interview(MP3 format).
The Reason Gold Will Reach $1650 And Beyond
In my opinion there are two reasons why gold will, without any reservation, trade at $1650 after which it will seek both Alf and Martin’s price objectives.
The first reason is that we do in fact we have a 90s type Resolution Trust, but it carries another name. This time the Resolution Trust is the Federal Deposit Insurance Corporation. When you examine the mode of operation and consider what they will be required to do over the next two years and on into the future at an increasing rate, there is no question this is correct.
The second fact is that the ENTIRE plan for financial recovery is to “PRETEND and EXTEND.” Federal and State bank examiners are being extremely lenient in allowing real estate loans of all categories, from commercial to residential, to be carried on the books of the institutions at full value even if they are behind on payments and indebtedness to the institution is greater in size than the asset’s worth is in liquidation.
Fundamentally, PRETEND and EXTEND will create an ever increasing supply of dollars and demand for borrowing, both of which stand as the last pillar in the erection of gold as a permanent building. So to those that understand what gold is (insurance) these wild gyrations mean nothing whatsoever to the upward trend of the entity.
The outrageous moves about to occur are simply what gold is multiplied in orders of magnitude by the total madness of the hedge funds and their automated trading systems pushing hundreds of billions of dollars into and out of markets, churning them incessantly without any regard in the case of gold. Gold cannot handle funds that size.
If you cannot stand gold’s heat then you must leave the arena now. If you choose to leave the arena please do not come back because it is only going to get harder. Truly Main Street is in the hands of a casino. In a sense hold my hand as we go through these outrageous machinations, as the price that gold is going to is much higher than I have anticipated.