Thursday, December 29, 2011

Jim Sinclair: We've Reached a Level of Despair Among Gold Investors That Was Never Reached in the 1970's Bull Market

The Legendary Jim Sinclair has released an email alert to subscribers tonight stating that the depths of the panic and despair in the gold community (and silver we might add) is more severe than at ANY time during the major gold bull of the 1970's.  Levels of extreme bearishness bordering on panic among the gold and silver community indicate that major bottoms are near, if not in.

Sinclair writes:

Today was the first day that we got some good action in the gold price. It will be very interesting to see if sellers appear as they have been during Asian hours. Just because the manipulators use the illiquid Asian hours to paint gold do not assume it reveals the nationality of the selling. The gold market as we all know on a day to day basis is totally rigged. In fact, find a market anywhere that is not bullied by some young buck who considers himself the Master of the Universe.

Gold is coming up on a tight group of four very major support areas that will hold the price from which the next advance is to take place. We have reached a point in terms of the depth of despair in the gold community that was never reached in the 1968 to 1980 reactions.

That is all this is. Just another reaction in a Gold price headed for Alf's $4500.

I imagine when gold reacts off $2100 the stampede to the bath tub with their razor blades will be on again. Gold has in no way topped. The gold reaction per day in terms of percentage was nothing whatsoever. We have in no way reached the level called "thrilling with bullish bliss" common of a top. Every dollar we have won has been paid for in blood. All the short of gold wunderkin Masters of the Universe will have to be destroyed before gold is fully priced. The community, if you can still call it that, is in a psychotic episode that is soon to end.