The Legendary Jim Sinclair has sent an email alert to subscribers tonight that a re-challenge of $50 by silver appears imminent, and that the 1970's bull market in gold was merely a dress rehearsal for the main event occurring today.
From Jim Sinclair:
Please keep focused on the fact that the gold market of the 70s was simply a dress rehearsal. What is taking place right now is the real thing.
The supposed "Curse of 13" is behind you in the break from $1900 to close to $1500.
The reaction was stopped because the need and use for QE to infinity is real and present in time. There is no other tool in the lender of last resort to the entire Western World’s toolbox other than QE which can be applied to create the degree of liquidity required to prevent a global implosion. No other tool can create infinite liquidity in a flash. There is no speculating on what might happen in the future. It has happened now.
Few are looking at dollar utilization falling in international contracting and settlement. That is a key element of 2012. The US dollar has enjoyed demand from settlement and contracting which it is now losing daily. Gold is gaining utilization as a competitive currency.
Enormous utilization was the blessing the dollar had when it was the reserve currency of choice. Utilization and settlement is falling fast as the dollar now is the reserve currency by default.
Very few have ever tried to quantify this serendipitous demand for the dollar. Allow me to assure you dollar utilization for these purposes is huge and extremely important to dollar valuation.
2012 is the year the dollar falls as a result of a significant drop in dollar contract and settlement utilization. Imagine the demand for gold as the dollar closes below the antiquated measure of .7200 on the redundant USDX. When this occurs you will be looking back at $2111 from higher levels.
Please keep in mind that this is not a dress rehearsal but rather the real thing. There is no practical means to handle the problems at hand. We are at the dead end of the road the can has been kicked down.
Volatility in gold is going to go wild so just keep your head down and hold your insurance close to your chest. The cheapest thing gold is the gold share with the most ounces versus its price.
Silver is a game, but one hell of a game. Another try by silver at $50 looks imminent.
Regards,
Jim
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10 comments:
why do i have the feeling in a year or 2 silver will be priced in the 2-300 dollar range ?
Dang Doc I'm in the wrong business, someone just dropped $5k in your donation paypal!
In other news, looking forward to Mr. Bernake's address tomorrow, and also his new teaching career...Oh you didn't hear yet? Put down any beverages before reading the following:
The Federal Reserve Board announced on Thursday that Chairman Ben S. Bernanke will deliver a series of lectures aimed at college students. Beginning on March 20, he will lead four classes on "The Federal Reserve and the Financial Crisis" as part of a course offered to undergraduates at the George Washington University School of Business. The class will feature a variety of speakers who will discuss central banking. Chairman Bernanke's lectures are scheduled for March 20, 22, 27 and 29 and will begin at 12:45 pm EDT.
To access the lecture series live, use the following link: http://www.ustream.tv/federalreserve
More info: http://www.federalreserve.gov/newsevents/lectures/about.htm
I feel bad for those students who have no idea about the sham about which they'll be taught. I'm a sophomore on the economics major track and in my microeconomics class even where you'd think it'd be businessy and about practical things we're learning all this theoretical nonsense about social welfare and central social planning to best redistribute/allocate endowments.
I have a hard time even holding my nose doing exams that ask multiple choice questions which have an answer that favors the socialist prof's POV. College is not this 'marketplace of ideas.' It's entrenched socialist-leaning statism where any ideas about morality and liberty are thrown out the window, as well as decency.
So many kids dream of being ibankers or Wall Street. You could offer me a 6 figure paying job at one of those rent-seeking scum firms and I would reject the offer instantaneously.
how right you are Fisher. I've been collecting degrees and the ignorance of the academy is simply mind boggling. to me, they mostly seem like a journalist pack, each one following those with the coolest credentials.
here's a great article that shows just how corrupt the academy is...so much so that they coined a new term for it: academic capitalism. though we all know here that it's a blend of socialism, crony capitalism, fascism, etc.
http://chronicle.com/article/An-Emerging-Field-Deconstructs/130791/?sid=cr&utm_source=cr&utm_medium=en
Once again as soon as there is a positive move in the metals the "pundits" start talking the talk and predicting the "big move". They like to be on the right side when eventually things do break out.
After wading through the usual "flowery" talk of Sinclair you get to the bit where he pumps Gold shares.
Just buy REAL Gold and Silver. Forget the shares.
By the way GOLD is just GOD without "hell" .
Anon1:29
Wouldn't it be hysterical if the CFTC came up with the stones to define "swap" in the next week or so??
At least one of those clowns had to trade baseball cards as a kid, right??
4oz
George silver is right I believe. Careful guys. Sinclair may be right this time but buy the Phyzz. There may be a pull back just because some people will try to turn that profit now and sell heavy. In the meantime, I'mm going to pull the trigger and buy 100 oz. regardless of price.
A swap definition would be funny 4 OZ. and would make my day as all the sheeple wondered why I had a shit eatin' grin on my face all day.
2 OZ.
Bernankster will not announce the QE that we all hope for. The market is high as hell and the only next criteria will be for qe is deflation. ITS SLIGHTLY possible that due to deflation, he will announce qe tomorrow. Don't hold your breath.
Dummy
Bernanke should be teaching cons how to make license plates at the Supermax
I am guessing that whatever Sinclair is selling, gold stocks etc, he has a major stack of phyzz. He knows the jig is up as it comes to FIAT and potentially the entire stock market. Holding your shares by direct registration may be the only way to keep those shares safe.
Sinclair is not stupid. He may own Tanzanian shares but given the location of that mine, he has to know that mine could disappear faster than customer funds at MFG.
If 250 years collective wisdom from the top minds in the PM industry say 'things stink and this time it's NOT different' they may just have a bead on troubles coming our way. Particularly the CDS, ISDA and the word wide banking system risks.
The ISDA CDS/Greek default committee meets March 1 at 11 AM GMT. Hold on to your lederhozen. Things could get real interesting.
School is a fucking joke. I am a junior at ASU learning about Accounting and Finance. These are upper level courses and I only go to 1 out of the 4 classes because credit is issued for going.
I know my degree will be worthless one day. All of my peers are more interested in Department of Education pay checks so they can be disgustingly immoral, buy things, go to clubs and waste their life inevitably becoming a debt slave to the DOE.
I don't care what people do with their lives as long as they leave me alone but I know that the elite are able to deceive others better when their morals are like the animals or worse.
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