Posted on 27 December 2012 with no comments from readers
The recent falls in the gold price are absolutely nothing to worry about for long-term investors who have a gold price target way off the present scale, and this is a repeat of the take down in gold that happened in the late 1970s just before the big price take-off, says the 70’s gold king who made it all happen then.
Jim Sinclair offers a unique perspective on gold from the position of an old-timer who made a fortune from great timing. Past success does not guarantee future success but choosing your market guides on this basis is surely better than not doing so.
‘I have seen this type of take down before,’ says Mr. Sinclair in his latest missive.’It was just prior to the major move in gold in the 70s wherein gold rose the most over the shortest period of time.
‘The operation of gold’s price is not for a short to profits as its market character speaks of deep pockets only governments can have. I suspect that battle for the survival of the euro might soon be reversed into the battle for dollar survival.
‘Euroland, Russia and Asia from central banks to connected financial entities have been buyers of gold. The tables have shifted. The signs of the new triumvirate being on the offensive sits right in front of us.
‘This is the transition that I believe is at hand. This operation is from some mega interest not seeking to profit on a short,
The sector funds are at a higher risk because if there is any negative news on that particular sector then the share prices could fall of dramatically. See here to know more. It is important that one keeps a check on the sector performance and exits the market at the correct time.
but to obtain the most gold possible for this market event which will play into 2015 to 2017.’
Big macro picture
Take the longer view and do not concentrate on short-term price volatility. People said gold was a spent force as it battled to get above $1,000 and fell back three times. Look where it sits only three years later, and that after the current price take down.
You are playing a big macro economic game with gold, not making a trading investment. Silver is the same only saddle up for an even bumpier ride to even higher performance. The US dollar is going to be the next casualty in the global currency game, according to Mr. Sinclair…
‘The first signs are definitively in that the long war conducted by the US and GB against the euro has been lost. The euro is in a new birthing process, against all odds, as rising into the category of reserve demand. Euroland and all the BRICs have been buyers of gold for reasons not motivated by emotion, but based on events yet to occur.’
Gold of course is the ultimate insurance policy against a failing US dollar.