Legendary gold trader Jim Sinclair has sent another email alert to subscribers today, warning that the current reaction in gold is the big one, and the last play by the bullion banks to denude gold and silver investors of their positions. Sinclair states that fundamentally, we are approaching the period where gold and silver will achieve their greatest gains of the entire bull market in the shortest period of time, and that The paper gold market is being used to shake the bullish tree harder this time than any time before because of what is to come.
Sinclair states that the big move is imminent in gold!: We are right in front of that time when the market performs a classic bottom both in shares and physical. From this point gold is going to and through $3500.
Sinclair’s full alert below:
OK if you have a current account deficit then the currency will decline on an inflation adjusted basis. Now that is the only point I agree with Jim Sinclair on. However that decline can be reversed if capital flows are strong enough in the opposite direction. Now go little grasshopper you have the knowledge.
Jim Sinclair has displayed very little capacity to time these capital flow reversals. Instead focusing only on where he thinks he will eventually be right. Now given the S&P 500 has just given a moderately strong buy signal I think its possible that the US dollar will go up for a few months. And conversly gold could easily decline towards 1200. Think that cant happen when CPI inflation adjusted US dollar gold is near its 1980 high. Compare my logic to Jim Sinclairs love letters to the cultists and make a judgement about whether you should continue to be uncritical of him.
BTW if you have some logical statement showing me the error of my analysis I would like to hear it.
Chartfaker, I won't say you're faking the chart, but I will say the technicals are far more mixed.
The SPX just hit a perfect daily ABC up target, prematurely. Hitting that upside target relieves some upward pressure. It may run to 1576, where there is huge double top pressure. The $USD is showing a 3 different H&S's on 3 time frames. It's weekly MACD has refused to cross up. It has fallen out of it's year and a half rising channel. Gold 1645 on the daily chart on Monday is an important line. If there is solid support there, 1694 could be back quickly. If it doesn't hold 1645. 1630 has considerable support as does 1525.
Obviously the crushing, manipulative downward pressure is substantial, but 1200 won't come easily, if it does at all.
From Jim Sinclair:
Please do not fall for this classic manipulation. Please do not make the gold banks happy by giving away your physical. Please do not throw away gold shares because the hedge fund have worked black PR so well that they even have convinced some well known community physical gold merchants of their bear position of shares.
How many times have you seen this not to recognize what it is? Well, this is the big one and last play to denude you of your position. Remember, for every seller there is a buyer. Has not every reaction in gold since $248 attempted to do just that? This big one is no different.
Fundamentally we are approaching the period in gold when it will move up the most points in the shortest period of time. The paper gold market is being used to shake the bullish tree harder this time than any time before because of what is to come. Fear is the most powerful emotion in markets and it is being used perfectly to enrich the grand names of finance at your expense.
Remember how you felt during the first reaction above $1000? This is nothing different. The take downs are planned for times when the market is least liquid either inter day or inter market. This is not liquidation, it is price movement only. I used to do this for a living. I don’t think, but rather I know.
Clearly the gold banks will try to get gold into a capitulation point. Hear me: We are right in front of that time when the market performs a classic bottom both in shares and physical. From this point gold is going to and through $3500. That is why what happened today is happening in the first place.
If you are unable to buy at this time there is one thing you can do. There is one way to get into the fight and out of the stands. That act is do nothing, and do not capitulate. Let them play the price game, but give them nothing whatsoever of yours.
You can exhaust the downside manipulation by not letting it work in the classical terms. You can get into the scrap and not just be on sidelines by calling their bluff no matter how much temporary pain needs to be confronted. We are more powerful than even you know. We have what they want, and we can simply say, NO!
Call your gold companies and ask how their affairs are coming along. Now you must know. Do not pussy foot with them. You want answers
Communicate with me and I will do my best to help you through this: treceo108@icloud dot com