I stopped asking myself that a while ago. Gold should be higher. Much higher.

I subscribed to Jim Sinclair's newsletter (other paid subscriptions being Casey Research, Stansberry Resource Report) and here's what he has to say about the recent gold smackdown.

Please do not be hoodwinked by these demonic sociopath bankster gold banks that, just like in 1979-1980 with the help of Trojan Horse gold writers, stole a huge amount of gold and gold shares from long term cash investors, leaving them without any insurance as the gold market made the highest price and covered the most dollars of appreciation over the shortest period of time.

In the 70s gold appreciated on the basis of what MIGHT happen. Gold is going to and through $3500 because of what has already happened already. Not one more problem by one more dollar is required for gold to attempt to move in price to balance the balance sheets here, there and everywhere.

My advice is to hold all gold positions and wait patiently for the correction to end. Just before the huge 1979-80 surge, we saw a big ‘clean out’ correction in gold. I believe history is about repeat. — Richard Russell

You have heard it from Richard Russell and myself. You can be active in the gold and gold investment market by simply doing nothing. The new evil demonic gold bank destroyers of good efforts are working hard to create a waterfall in gold and gold shares that can only happen if you are foolish enough to shift your decision making to your emotions. If you want to fight back, do not under any circumstances panic now. If you do not panic they will be beaten as this is the last significant reaction before gold roars higher. If you want to be in the fight and not simply a spectator, you simply have to do nothing whatsoever.

Richard Russell and I are not newcomers to the gold market. Neither Richard nor I have experienced embarrassment as leaders, directing our friends into a trap of price or time. We will not fail now. Our legacy will be extremely clean.

Gold is heading toward the system and not away from it. Gold is the necklace many currencies will be wearing from 2015 forward. The percentage of gold being held as reserves seems to have a 15% target on it. That should give you an easy way to compute what these central banks are thinking in regard to the ultimate value of gold in the free gold cash market.

Gold is the only tool available to balance the balance sheets of the worst monetary deficit, debt, sinners. Gold will balance the balance sheet of the transgressors. The transgressing central banks have to balance their balance sheets as the world cannot continue forever on this QE sponsored illusion of solvency.

Jim

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Posted by LSU0358

Member since Jan 2005

7920 posts

Posted on 2/20/13 at 11:28 am to goodgrin

I'm copying my post from another thread...

The US dollar has been in a nice uptrend, which doesn't help PM prices.

1500-1550 is the first level of support for gold, with 1400 being the second (and last IMO) support for gold bulls.

In silver 26 should hold if we are still in a silver bull, though 28 should provide support.

As far as metals go, the one I like the most at the moment is platinum. Big time supply issues with south africa mining problens and Chinese auto sales (combined with government crackdown on the cars having effective catalytic converters) increasing demand could set up an explosive scenario.

Main reason is the US Dollar has been going up pretty well. The Japanese Yen and Euro are going down which is driving the dollar up.

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Posted by Jake88