Goldman Sachs reverses and turns positive on gold hitting $1,825 this year as Jim Sinclair proven right againPosted on 22 January 2013 with 3 comments from readers
Readers of this website may recall the wise words of gold market veteran Jim Sinclair late last year warning that the bullion banks were pulling the gold price down but only to reposition their own holdings ready for the next spike up (click here).
Goldman Sachs warned its clients that the bull market in gold ‘might be over’ at the time. This week the same bank is pressing its clients to buy gold again because it sees a pop in the gold price to at least $1,825 this year before another set back.
The last time gold hit this level the silver price took a tilt at taking out its 1980-high of $50. It could be the same story this year.
That’s what we love about gurus like Jim Sinclair. He speaks from long experience and considerable trading profits in a long career. Mr. Sinclair advised the Hunt Brothers in the late 1970s when they cornered the silver market and pushed prices over $50 an ounce, a level that has never been matched since then.
When he saw the gold price under attack at the end of last year he immediately spotted a rat in the shape of the bullion banks. They wanted to use an accelerated year-end sell down in bullion to reposition themselves ready for the next leg up in prices, and so it has come to pass.
Life for traders is never entirely without problems, however. Over-inflated global financial markets could still correct suddenly and derail the next advance in gold and silver prices.
For long-term gold bugs like Jim Sinclair – and he’s ridden this bull market right from the start with some stunningly accurate calls – this is just a matter of riding the waves of an upward trend. New market entrants are not as sanguine when their investment suddenly drops in value.
Buying on the dips like at the end of last year is the way to do it but few have the confidence even when Mr. Sinclair spells it out for them. That of course is why he became a rich and successful investor while most people never will!