Golden Pearls of Wisdom
This one from Jim Sinclair on what's occuring in the gold market lately and the light of the dollar. The statements are brief, to be sure, but provide an extremely timely reminder to Fools that if they've ever considered going long gold to defend against significant deterioration in value of the dollar over the long haul, then there may well be no time like the present.
Sustained $1,000+ gold is a certainty, IMO. The precise timing can not be known, but I very much agree with his assessment that the next major move in gold will be a sizable upside move that leaves many wishing they had acted.
No regrets! :)
If you need encouragement of a more comprehensive nature, then please consider my two-part case summarizing the fundamental case for gold exposure, don't miss binve's amazing blog post weaving fundamental and technical analysis seamlessly into a cohesive unit, and his related discussion of the dollar.
From Sinclair's site:
There is no better proof that we are getting extremely close to the Armstrong/Alf point of lift off than the violence of the shorts in their desire to cover both in paper gold and the long suffering junior gold shares.
The method used is to increase the short position now while we are waiting for the uptick rule to be reinstated all while driving a bulldozer of selling into markets. This selling is not to sell shares as much as it is to make a grandstand play to shake the confidence out of the bulls.
This type of strategy in paper gold today and many of the highly shorted junior gold shares is to ignite the passion of fear in holder’s hands, therein allowing the shorts to make cover.
Call or email your company and inquire about their fundamental position. If it is good, then be sure you are witness to a strategy that is as old as markets themselves. This strategy is used by bulls to run shorts, and shorts to make cover depending on the circumstances.
In my opinion we are very close now to the best and longest move upwards in the gold market.
Gold is going to $1650 and then on to Alf’s numbers.
The US dollar has nowhere to go as its support here has been only algorithms and coordinated statements of support, but actions to the contrary by the BRICs.
Stay the course.