Note in the following 24 Hour Sport Gold chart, the sudden “waterfall” plunge in the price of gold. Of course, it happened AFTER the close of the market (NYMEX) when the trading is thin and the market is easy to manipulate.
Free markets, my arse! This is selling by a non-profit motivated seller. Someone or some entity WANTS gold to fall. It’s as simple as that. It’s been that way since $248. The name of the game is to keep the fall in the dollar minimal, and avoid panic. Gold is the canary in the mineshaft and it must be kept in check. But this only works short-term, and the headwinds of the bull market are too strong to keep the price down for long. It’s been that way all the way up since $248. The key number now is $1,764. It will spotlight the seriousness of the Greek default, the Mid East tensions, and the Supreme Court’s probable derailing of Obamacare. Once gold punches through this important price, the game changes – so says Jim Sinclair.
He also says $1,630 was the LOW for gold. The bottom is in. We may not see the action we want for another two months, but by June, we may well see an entirely new ball game. One that is very favorable for your gold investments.
That is about the time the Fed will indicate that QE3 is possible. Possible? It is absolutely unavoidable. The economy is not recovering, it is bottom-bouncing. John William’s latest numbers clearly show that to be the case. Whatever is required, in the way of stimulation and liquidity, will be provided by the Fed and the European central bank. QE to infinity, another name for debt monetization, is the new reality. Without further QE, the stock market could drop several thousand points, says Sinclair. No way will this be allowed to happen, especially in an election year. All of the previous liquidity, TARP, QE1 and QE2 went to prop up the mega-banks. None of it reached the man on the street. The money went to pay off the losing bets (OTC derivative meltdown) to the winners, the mega-banks. Trillions down the drain, for most of us who are not “well connected.”