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Goldman Sachs reverses and turns positive on gold hitting $1,825 this year as Jim Sinclair proven right again

Posted 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.

Silver too?

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.

Hazards ahead

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!

Posted on 22 January 2013 Categories: Gold & Silver

3 Comments posted by readers:

Comment by John Mark - 22 January 2013

Some say that gold’s real value at the moment is $11,000 per ounce, which is a long way above $1,825

Comment by John Mark - 24 January 2013

Since my comment above, I have found the article in which the $11,000 per ounce for gold was explained.

The idea is to take all the foreign currency (from whatever country) in all the central banks of the world and compare that to all the gold held by those central banks.

So, the total of foreign currencies held is $10,778,740,000,000 and the amount of gold held is 31,575 tonnes. Divide the first by the second and you get $10,617 per ounce for gold.

I have tried to do the calculation myself and get a different figure of $9,677 per ounce. Would anyone else like to do the maths and tell me why my figure is different from that in the article?

At all events, whichever figure is correct, they are both higher that $1,825 per ounce as Jim Sinclair is predicting and getting on for $11,000 per oz.

Comment by olm - 30 January 2013

Goldman saying to buy Gold?=
a)trying to prevent people buying more silver,as it is almost impossible to keep up the manipulation
b)Gold will
soon be attacked and drop

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