Silver uptrend intact- Firm support at $34

Jim Sinclair Post- Gold Price + US International Balance Sheet

Little by little, I am passing on ALL that I have learned from Jesse through Bert and Bert's knowledge to those that read here, every day, in thanks for your support of me and mine. --JEBS (James Edwin Bertram Sinclair)

Assumption:

Because gold is held by many central banks, once as a reserve currency but now as an inventory currency, it functions as a swing asset to balance the International Balance sheet of the US.

Central banks are sellers of dollars but still hold, by default, large dollar inventories.

China has hedged its dollar position 50% through commitments to long term dollar commercial agreements, pay in, mineral, and energy deals internationally. That is an act of pure genius.

We can assume other central banks still hold 90% of their reported dollar positions, on average unhedged by commercial obligation positions.

In crisis times, the US dollar price of gold ALWAYS seeks to balance the International Balance Sheet of the USA.

Therefore:

Take 90% of international US dollar debt less China and then add 50% of the US debt owned by China. Then divide that number by the ounces supposed to be owned by the US Treasury. The result is where gold wants to go.

In 1974 this gave me $900 gold. Now you do your homework, and submit your analysis to me. Do this, and I will give you Angels going to that price by a little known technique of Jesse Livermore that only works on gold after it has broken to a new high above all resistance.

Little by little I am passing on all that I have learned from Jesse through Bert to those that read every day in thanks for your support of me and mine.

Jim

Very strong signs of a bottom in gold, silver, gold miners both junior and seninor today

Will put up some charts showing why soon but would go long today. Consensus has become negative enough.

Gold February uptrend intact

No signs of correction. Still long

Jim Grant quote

"We never actually pay the rate of interest that we might be expected to pay -- the real rate of interest -- on Treasury debts. It's great for now that we're paying 2.5 percent or whatever on our public debt. But wouldn't it be better if there were an accurate price signal that was telling us that we're borrowing too much?"

GDX Support at 54 holding

Greatest Trader in the world Jesse Livermore quote:

"After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!"

Support levels tested and some broken

Good article to understand why silver is not overblown by long term standards

Pay particular attention to the rate of change chart
Link here

GDX Break or Bounce #2?

Watch for a bounce off of or break below trendline

Silver collapses past two support lines. Will it be survive primary support line?

Watch for possible reaction at primary trend line (blue line)

Food for thought in silver

17 days of gains wiped out in 4 days. This is a good lesson of why one must be extraordinarily cautious during parabolic phases if one is to lock in profits.

Gold reaching upper trading band

A convincing break above the upper band could signal a breakout of the trading range and a new plateau.