There appears to be far more downside risk in the S&P than in silver. Silver has had three bad years while the S&P has had five good years. It is time for both markets to reverse. Examine the following graph of Silver versus the Silver to S&P ratio. It tells me the ratio has returned to levels seen in 2008 and that the ratio follows the price of silver.
Tag: jim sinclair
Jim Sinclair, also known as “Mr. Gold” as he has made literally fortunes with gold in the 70ies, was in Texas recently. He talked about the prospects of the economy, the looming derivatives disaster, and gold’s outlook. One of the attendees, Bill Holter writing for Miles Franklin, reported the key thoughts of Sinclair in a blog post. This article provides some remarkably interesting highlights.
Jim Sinclair explains that gold price setting is too dependent on the paper market, to such an extent that it has continued to live as the means of manipulating the paper price of gold. What is “Free Gold.” It is the decoupling of the gold paper market influences on the gold price setting, or in other words freeing physical gold from price slavery to paper gold. The mechanism he describes is through the present time deletion of future exchange warehouse supply. He describes in this piece how he is planning to achieve his target.
“In Cyprus, confiscation was a total of 83%. Cyprus is the blueprint, and it’s what we are going to experience here in the United States.” How high will gold go? Sinclair predicts, by 2016, “Gold will be $3,200 to $3,500 an ounce.
This is a massive attempt to break gold in order to camouflage the weakening Western banking sector. Paid bashers are flooding in to all pro-gold sites and many other pro-gold sites are under attack in other ways. Gold banks are flogging the paper market seeking to depress the price but without selling too much.
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.
The earliest date of the end of the decline is the 28th of February and the longest period of pressure is until the 27th of March. Thereafter gold is released to the upside which will be a minimum of $3500.
The gold and silver price drop is significant. We would say it is out of proportion, although the latter does not matter. The sentiment indicator(s) signal a significant long term bottom. By contrast, the fundamentals of owning physical gold have not changed.
Jim Sinclair commented in the past days more than he is used to. It indicates that gold holders and investors get too nervous about the long consolidation period. The general mood becomes bearish, driven by the price of the metals, the awful performance of the gold shares and negative outlook reports. As a contrarian, Jim Sinclair believes this decline will be over by his birthday, which is March 27th.
A latest blog post on The Telegraph lays out that “the world is moving step by step towards a de facto Gold Standard.” The author points to several facts. In addition the latest evolution with Germany’s gold could be a real game changer. Jim Sinclair reacts publicly on the article.
There is no way that the implications and consequences of what has been done up to now can be talked or manipulated away. There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system. Just go back to the IMF report on OTC derivatives I posted this morning. If QE ceases, the US bond market collapses and the Fed must debt monetize all required debt, which means if QE stops, it starts up again immediately and in a crisis mode.
After yesterday’s announcement from the US Fed to continue their bond buy program of $ 85 billion dollar per month, the gold price initially rallied but closed the day flat. Surprisingly, in the Asian market trading session, gold and silver took a dive. The idea that precious metals prices go down right after one of the the most bullish possible events, is highly suspicious (to say the least). That’s the type of situation when a real expert needs to explain his opinion. Jim Sinclair commented on today’s gold price action. What follows are his wise words : Gold will trade at $3500 and above on its own merits with Eastern demand in the cash […]
The price of gold and silver price took a dive today during the trading session. Gold in US dollar closed at $ 1,696, somewhat higher than the intraday low at around $ 1,692. The price of silver closed the trading session at $ 32,83, recovering from the intraday low at about $ 32,7. Jim Sinclair reacted today on the evolution of the gold market. As he openly admits, he was crushed by e-mails from people, all asking the same question. Although he didn’t describe the question(s), it seems obvious it had to do with the gold price drop. Here is Mr Gold’s take on the gold market today: There is no […]
When Mr Gold talks, you better make sure you listen. Jim Sinclair requested via his website to control emotions and writings with regard to gold confiscation. It’s quite unlikely that gold will be confiscated in 2012 like it happened in 1933. In order to understand the reason why, it’s mandatory to have some basic monetary insights. This is how Jim Sinclair explains it it: In the 1930s gold was to the monetary system what QE is today, a means of increasing the supply of money for Fed and Treasury discretionary use. The US Secretary of the Treasury and President Roosevelt set the gold price higher at their daily breakfast together […]