I want you to think about this comment from Jim Sinclair:
As time passes everything is about the dollar and not about any paper game.
The games played to separate us from our money by Goldman and Merrill are but a temporary evil. Hot wars have been fought recently over this chart in which people have died. Libya is a prime example.
The major factor in the dollar evaluation is (its) utilization for international contract settlement including, but not limited to, petro dollars.
Satan’s financiers have danced on us, but the dollar will have the final say.
Continue reading on jsmineset.com
There is still some lingering doubt about gold. Is the bottom in? Is the bull market over? Will we ever beat the Cartel? My answers to these three questions are: maybe, no and yes!
The technical analysis people (like Rick Ackerman and Larry Edelson) consult their charts and they postulate that gold “could” still fall to $1,300, give or take. This engineered takedown was the result of the Technical Funds selling their long positions and going short. Their programmed (advanced algorithms) exit points kicked in after the coordinated waterfall drop, courtesy (according to Sinclair) of Goldman and Merrill, got the ball rolling. The Technical Funds were absolutely a prisoner of their own programmed-to-buy, or sell, moving averages. So it is not unreasonable to assume they will continue to sell, if their technical analysis programing tells them to. This is the way the short-term game is played.
I hate to use such a common cliché, but all bull markets go through major corrections, and this is our first one in 12-years. Bull markets build strength after the weak hands have abandoned the sinking ship. They climb the proverbial “Wall of Worry.” I’m just not sure if all the rats have bailed yet.
The collapse in prices hasn’t bothered most of our readers and clients. We get encouraging emails by a factor of more than ten to one over those who think we let them down. Since the collapse, our business is stronger than I have ever seen it, going all the way back to when I founded Miles Franklin, in 1990. And now product is drying up – especially the silver items, which are either (a) not available, or (b) available with a long delay to fill an order, or (c) available with a huge wholesale “premium” added to the Comex spot price. Junk silver (one of the most preferred forms of silver because it is usually the least expensive way to buy it) will actually cost you as much or more now than before the collapse in price, if you can find it. Premiums (the cost over spot that all of us have to pay to source precious metals) are up on Silver Eagles and Maples by as much or more than silver dropped in price.
So I ask you – WHAT DROP IN PRICE? The physical market didn’t experience it on its most popular items. The reason is simple. The mints are over-sold and can’t deliver, so price rises. The secondary market has dried up since no one will sell at these low prices, so prices rise. Andy Hoffman tells me that throughout the industry, Buffalos, and Sunshine rounds are completely sold out. The premiums on junk silver rose $2 an ounce Tuesday alone and is up $4.00 since this fiasco started on Friday. Spot silver is down around $4.50 since Friday and the wholesale premium is up $4.00. And you still can’t get it – the price will have to go even higher to pull more bags into the market.
Getting back to Sinclair’s quote – all of this, the WHO sold it and the WHY they did it makes for good copy and water cooler conversations, but the plain and simple fact is it is just short-term “noise,” and aggravation. Forget everything that has just happened except for two things. First, what a great opportunity to buy gold and silver at a HUGE discount. I hope you are taking advantage of it. And second, the Fed cannot stop their QE to Infinity program. They cannot allow interest rates to rise. The only possible outcome to the Fed’s continued mega-inflation of the dollar is for the dollar to lose value, lose purchasing power. Lose it to Gold! Gold must rise to record highs as this unfolds. And Gold will not go to the dance without taking her little sister, silver along for the ride too. It’s just that simple! The only question is, “WHEN will this happen?” not, “Can this happen?” Black Swans are out there in Europe, in the Middle East and on the Korean peninsula. That means things could unravel very rapidly. Or if you give John Williams and Gerald Celente a lot of credibility, then we have a couple of years. Sinclair’s timetable reads something like 2015-2016. But we don’t have to know WHEN the dollar retreat and gold’s rise will commence. The USDX will tell us. When it hits 70, the Fat Lady is waddling onto the stage. We can watch it retreat from its current level of 82.
In a way, what just happened is a very good thing. It forced people to buy NOW and enabled them to buy CHEAPER. In this crazy world of black swans, we have to be early. This is forcing people to be early. Being even one day late is not an option.
So just sit back and let the hedge funds and the bullion banks pick each other’s pockets in the paper markets and use the artificially and temporary low prices to go on a shopping spree. Do it, with full confidence that nothing fundamentally has changed. The dollar will fall and gold will rise. The only thing that could derail this scenario is if the Fed is willing to let interest rates rise (to protect the dollar) and sacrifice the real estate market, the stock market, the economy and the bond market. Fat chance of that happening! Don’t make it more complicated than it is. It’s just that simple. And Sinclair points it out, in his round-about way of explaining things in the lead-in quote.