In his latest interview on King World News, legendary Jim Sinclair explains (among many other things) why he believes the gold price is bottoming. To back up that statement he looks back to the 70′s bull market where he was active in the market as the largest gold trader. He shares a story where he was in a position “manipulating” the gold price down … so he knows how it works.
Jim Sinclair looks at the trading patterns, and is convinced the price take-down was “engineered.” Additionally, he believes the gold price is at or near a major bottom right now, for the following two reasons:
(1) It is highly likely that the price objective of the short operation is being reached. It looks like the trading pattern (taking the prices down) has changed.
(2) The nature of the price drop is not the one that occured at the end of the major price top at the end of the 70′s bull market.
Jim Sinclair keeps on believing that the gold price in dollar terms will go to and beyond $3,500. He adds to it that increased volatility will occur, with one-day corrections in the same order as the one we witnessed over the past 1.5 year.
In closing, he said that gold is the only tool that can heal the world, balancing the out-of-control balance sheets of Western central banks.
The interview is on this location on King World News, and it is a must-hear.