You've actually given a number of reasons why gold may have bottomed (for now). Who is left to sell when sentiment is so poor?
I found the Sinclair interview very interesting especially his comments concerning the differences in trading on the floor in the 1980's versus watching computers do their work now at a distance. I was also interested to note that this smackdown and so implicitly the players he mentions, was predicted by him months ago. If indeed he is correct about the market manipulation and the players then his predictions on prices may be true. I see that he has moved his "3500" call to http://www.jsmineset.com/ that is: a gold based future economy(/ies) which has shaken off the debt and fiat death spirals. in his words: I do believe that Jim Sinclair is in touch with the major players (perhaps via proxy) and has insight to matters we mere mortals have no way of knowing. His calls may or may not be correct but they at least point to a future for us 'gold bugs' at least.
personally I hope his call is a bit early again. dividends don't start flowing through till the end of the month.
The piece I'm latching onto here is the quote JulieW put up - that there will be an interest in running the price up and down for a while. It seems reasonable that there is manipulation. It also seems reasonable that, whilst there are a large number of tools available to spook the market and get it running, there is no absolute control - when the market is running they cannot stand in front with a red flag or no entry sign. So when the pressure builds up to a critical point - BAM! we get a rush upwards. Then they can wait for fear, uncertainty and doubt to set in, a new level. Now they can go back to the see-saw. We have to assume that these are well-heeled and smart players, who are ready to make more money on either side of the trade. I believe that attempting to screw up JPM by purchasing and stashing silver is naive at best, but that won't stop me buying for my own reasons on the dips, and stepping aside from the exits as the sheeple flood out. They'll still have the toolkit, the silver vaults, the big shares in the miners, and accumulated as much physical as possible. If silver and gold remain below the cost of production supply will be constrained even further, so there are reasons to let out some rope, then jerk it tight when the bull runs out of steam.
Did Jim give the impression that Gold would increase gradually after march 27 or more like a spike up? Thanks for updating this, Good stuff.
I'd say that all guesses are as good as another with that question. What I find interesting is the description of how the market is led up and down - timing large sell orders on no volume of buyers and gambling that you won't actually find buyers at the price you're offering - especially significant now that the actual bullion vaults seem to be mostly empty of physical product. People in a position to gamble that sort of money (central banks and sovereign nations using 'sharks' to do the sale offers) rightly find clusters of stackers in the real world of no significance. They are trying to shake out the big players with volatility or the PM equivalents of margin calls - the sort that have 5000 contracts for 400oz bars to sell. So as to spiking or otherwise after March - well the message I received was buy what you can in the next little while as it's more likely to be more expensive later than cheaper.
My memory's a bit hazy, but I think he gives this final run-up until 2015 or so. A gradual increase (on average) but with massive swings in both directions between now and the end game. In his latest blog post he says people who haven't been able to emotionally handle the latest dip in gold won't stand a chance when it's moving up and down hundreds of dollars over a short space of time. In the short term, when the market finally turns, I think you might see a relatively quick spike up to the $1,700 level or so, but that's pure crystal ball gazing.
I"m sorry people although I'm sick of this guy. I have been listening to him for some years now and he essentially always says the same thing. The world is ending soon, right after Gold hits $3000+ per once. Don't get me wrong I believe one day people will be shocked at PM prices but this guy says buy now you have days left to act. I am very confident that day of reckoning is some time off. It's not the debt that will mater in the end, it will be the derivatives market which will cause the end. Never listen to someone with a vested interest.
What!!!! ? You...mean.... Santa... isn't.... real ? 1, I doubt someone with a vested interest would be putting time lines on their prognostications if there was an ulterior motive. 2, Many people read a lot into what he says without actually understanding just what he is saying. It's not like he said prices would rise to $3000 the day after his birthday is it ? 3, If by vested interest's you mean Unicorn herders like Bernanke and various other spruikers of the outstanding success of the world economy since the GFC I agree 100% , but I would under no terms place Sinclair in with that bunch of faeces consumers. Santa is at least trying to warn people. 4, He knows this market, has called it before, done it before. The derivatives might be the silver bullet that kills the beast but the debt is conveniently owned by the people and unless one protects themselves as advised.....
