1) Get ready for take off. All resistance levels on the juniors, seniors, and bullion have been shattered today, most likely signifying that the next blast off to new highs is here. Gold at record high!
2) Mr. Gold Jim Sinclair released the following report today.
Dear Friends,
I am writing to you from the Irving Farm Coffee and Internet cafe in Millerton NY. Our internet carrier went down today and is showing no promise of revival in the near future. I have a great coffee and a raisin bran muffin by my side so overall I have no grounds to complain.
Gold linked to the dollar today certainly has taken down $1444 for the count on three taps. That lights up Angel $1521 as the next to be captured.
Expect the Round Number Effect at $1500 for gold, but less severe than the battle at $1400. Angel $1650 is quickly coming into focus.
If we have learned one thing, it is not to get short term focused on this market. Stay focused on what is important and not the noise.
Think for a moment if Armstrong and Alf are right on gold. That would mean the following prices are coming:
$1650
$3000
$5000
$12,500
Those prices are possible because the balance sheets of the entire western world financial entities are based on false assumptions yielding valuation that pass auditing (FASB) but will never come to fruition. It is the mark to maturity method that not only used the BIS but other institutions that give comfort to the masses that are not looking at self protection here and now.
The financial system of the entire western world is FUBAR and there is no intention anywhere of fixing the problems at the level of its cause, OTC derivatives. The EU outlawed naked credit default swaps which is a clear comment on their ability to work if put under pressure. This is regardless of whether they were margin or naked in my opinion.
To say this is it is to be very late to the game.
Realize that the system has already failed.
Realize that there is no champion in a power position with the will to fix it.
Realize that even if there was a true fixer there are absolutely no tools to apply that would not in a short time cause more severe pressure than before applied.
Realize then that there is no PRACTICAL means to get the western world financial economy back on its feet
Realize that since the entire western world financial entities are based in sand there can be no sustainable economic recovery anywhere in that group.
Realize that a third war of any degree is madness.
Realize that our actions in the Middle East will cause increased hatred of the West.
Realize that the problems in the Middle East are not pro West or pro democracy.
Realize that gold is going to some degree make my long term price objective, given you ten years ago, look so low it will be silly.
Hold on to your insurance because you need it now. Pity the anti gold hedge funds short gold and gold shares based on, in my opinion, egomania, for they are very short lived now.
It is not a question of if we will prevail. We have already prevailed. Now our holdings are on the march to discount the hyper-inflation that is already written for history books to come.
Respect the fact that the same forces driving gold have historically driven equity market in past similar historical situations.
Respectfully yours,
Jim
