Jim Sinclair About The Gold & Silver Price: A Move Of Desperation By The Fed

A thinly traded gold and silver market because of the start of the end of year holiday … an ideal setting apparently to make the precious metals price(s) agressively move. Yes indeed, Paulson could have triggered an initial sell off in the GLD yesterday, causing prices to decline. But today’s price action seems too stretched. Logic or not, Jim Sinclair has opinion about it, and it is outspoken:

You cannot fix the problems of the Western Economic system by breaking the telltale thermometer, which is the price of gold.

There is not one professional who does not know sales in extreme volume at a time of low activity internationally have but one purpose, and that is to reduce the price of gold.

Charts and TA in such a manipulated, manufactured market, as understood by you, are totally useless. This is a move of desperation by the Fed via the gold banks based on the false premise that attacking symptoms without meaningful economic intervention is going to cure the problem.

Gold is going to $3500 and above. The US dollar is headed to .7200 and lower.

We are once again giving away greatness by driving gold into the coffers of Asia at bargain process that a powerful academic bureaucrat has selected. It is just that simple.

Nobody said survival from the onslaught of the demons would be easy, but it will be successful.

Source: JSMineset

The charts tell it all. The gold price is dipping in a similar fashion two days in a row, after a first counterintuitive behaviour a week ago (Wednesday 13th December, 2012) in overnight trading, right after the announcement of the Fed for another trillion of fresh money creation in the coming year. Gold is closing the day slightly higher than $ 1,640 and silver right below the important $ 30 mark.

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