The shorts major position of all time was based on what is NOT TRUE
March 19, 2013, at 6:12 am
by Jim Sinclair in the category General Editorial | Print This Post | Email This Post
My Dear Friends,
The most important take away from the Cyprus situation is the following sentence from my interview with King World News; "Because of that, any attempt to shift the weight of bank solvency to depositors has failed. This was the grand experiment which was to be the defining event where the financial shift from the onus of insolvency was to be placed on the shoulders of depositors rather than on quantitative easing." This now wrong cause was the reason why gold had three major blocks thrown at it by the hedge funds at $1775 to $1800 as it was about to break into new high ground.
Information was given to this financial clique that QE would be reduced as bailouts turned to bail-ins, shifting the pressure of holding the Western world financial system together to the depositors and away from central banks. The enormous short by hedge funds was based on the now impossible-to-continue retreat of the central banks to make the depositors the source of bailout funds.
Therefore the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover. Bravely, these short are taking a gutsy position by trying to make gold’s move above $1600 look weak, but it is not.
The shorts major position of all time was based on what is NOT TRUE. They were totally convinced that they had us and certain gold writers supported their view. Now they do not have us, but on the contrary QE to infinity has its foundation solidly set in cement.
Good thing Sinclair is looking out for you. Too bad he is spending all his time following the Cyprus situation and he isn't working on getting any of TRX's so called 'quick start' projects launched. BTW what does he think happens when a bank fails. The uninsured deposits take the hit. Nothing so crazy happening here or does JS what Germany to bail out Russian depositors in Cypriot banks?
There are no quick start projects. When you have had a license on your biggest property for 2 years and you announce that a pea on your second largest property is going to be done and that was 14 months ago there is only 1 conclusion that can be made. There are no quick start projects, the production is and will remain conceptual, and trx is gonna try and derivative the properties off on someone else if gold price moves up. And in the meantime age creeps on, kikwete gets closer to re-election, and the coffers run dry.