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The Treasury Department must have hired this guy to work his magic on the US dollar.

Before I go any further, you must watch the most recent KWN interview with Jim Sinclair.  If you want to know where gold is headed, (and the bottom IS in), what will happen to the dollar and the economy and why technical analysis (as in Larry TA Edelson) is worthless, then drop whatever it is you are doing and click on the following.

Jim Sinclair Saturday March 9, 2013 on King World News
Bill Holter said if gold and silver finish Friday up, the bottom is in.  That is his “gut feeling.”  After gold being down as much as $18 and silver down $0.60, gold finished up $0.60 and silver finished up $0.12.  The market has spoken – the bottom is in, at least so thinks our buddy Bill Holter.

Jim Sinclair also says the bottom is in.  So does financial advisor Peter Grandich.  If the hedge funds and JPMorgan were unable to push the price of gold and silver down on a day when the dollar was UP 0.65 and the BLS employment numbers were the strongest that they have been in some time, there is good reason to believe that the worst is over.

The dollar’s strength is mostly based on a very weak euro and a deliberately debased Japanese yen.  Holders of euro are moving into the dollar and the Japanese central bank is selling yen and buying dollars.  In the land of the rising sun, the yen acts like the setting sun.  The dollar is being hyped by the media who write that the economy is on the mend and lots of new jobs are being created.  But John Williams says that statistically speaking, it’s all meaningless.

He says, the numbers are the result of “Seriously-Flawed Reporting.  Neither the jobs gain nor the unemployment-rate decline was meaningful.”  Williams says February Unemployment is 7.7% (U.3) (a level last seen in December, 2008), but back in the real world, it is 14.3% (U.6) – and 23.0% using ShadowStats methodology, which calculates inflation the same way it was done during the Carter Administration.  The MSM promotes the lower number.  I say U.3 is wishful thinking.  It ignores the millions of people who are under-employed or who have given up looking for work.

Ranting Andy Hoffman is as angry and discouraged as I have ever seen him.  If it gets any worse, he will probably jump out the window – but don’t worry, he lives in a one-level house.  I doubt he’ll get hurt, but he could crush the tulips in his wife’s flower garden.  I use his anger as a “contrary indicator.”  Andy is a very emotional guy and in this market, emotions are not your best friend.  It’s not that he doubts gold and silver, quite the opposite.  He is angry and discouraged because this should not be happening – but as long as the bullion banks and hedge funds keep relentlessly shorting gold and silver on the Comex, the prices will not rise… not until the physical off-take takes over.  Word is that China and Russia are buying with both hands and the sales figures from the US Mint indicate that US investors (of physicals) are too.

It is a good idea to remember that all the shorts will eventually have to cover and go long.  Holter’s gut says that it’s about to happen.  Sinclair agrees.  So do I.  If we are correct, we may actually see Ranting Andy smile again.

I received an email this morning from friend and antagonist, Backwoods Jack in response to an article I sent to him titled, “Off the Charts: A Dow Record, If You Ignore Inflation.”  Backwoods wrote:

Using the same measure, can you tell me how inflation has not affected the price of gold and silver?  If gold is money, how come it hasn’t doubled in the past five years like the Dow?

Mind you, Backwoods and his wife jointly own over $300,000 worth of physical gold and silver and have been in the market, thanks to me, since 2004.  You would think he would know better.  But people are not being rational with the price of gold.  Sinclair’s “managed perspective economics” is working.  People can’t see the forest for the trees.  Lots of people are either selling or not buying at these “gift” prices.  Remember, for every short there is a long.  There is smart money out there buying every ounce that is being sold.  That’s the whole purpose of these engineered takedowns.  Create a market mentality where you can buy your gold and silver cheaply.

Then there are people who live by the charts – people like Larry Edelson who influence people to sell or step aside.  He is no friend of the gold bulls.  He will miss the turnaround.  He will be very late back to the party.  My best friend, Jim Cook, says, “He’s been wrong for over a decade.  He told his readers not to buy silver when it was $4.00.”  These guys make a living selling subscriptions.  I think it is a mistake to follow the chartists.  I prefer to go with big picture people who understand where this is all headed.  You should not be on the sidelines.  Whatever you pay for your physicals now will be cheap in the near future.

I wrote back to Backwoods:

Contrary to your statement, you are wrong.  Since 2008, Gold did double, along with the Dow, in spite of the last 6-month manipulation.  Check out the following 5-year graph.  Gold’s low was $709 and the current price of $1580 – Gold HAS MORE THAN DOUBLED!  And silver bottomed, along with the Dow, at $9.  It TRIPLED.  How fast we forget!

 

 

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Below are two King World News interviews with Jim Sinclair that I want you to read.  They are not long.  I am putting them in MY section as some of our readers only read my section. The interviews should give you comfort.  Things are turning around NOW.  $3,500 or higher is in the cards.

Regards,
David Schectman
Miles Franklin

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 Gold War Rages As Bulls & Bears Continue To Battle – KingWorldNews.com

March 8, 2013

Today legendary trader Jim Sinclair told King World News that when people look back in history, this will have been the greatest opportunity for investors in gold between now and 2017.  Sinclair also spoke about the Western central planners fighting against the primary trend.  Below is what Sinclair, who has been actively trading the markets for over half a century and whose father was business partners with legendary trader Jesse Livermore, had to say about what is now taking place and what to expect as the gold war continues to rage.

Eric King:  “Richard Russell talks about the Fed and Western central planners fighting against the primary trend in an attempt to stave off what should be a depressionary cycle.  Can you talk about their fight against that?”

Sinclair:  “The fight against that is basically a management of perspective economics.  The thesis that you can convince the public that everything is going to be fine, if you convince the public via the Dow Jones Industrial Indices at new highs, and mainstream media stories about the wonderful new housing market, about the great recovery in employment, the great future that we are looking at, and actually get them to believe it, the thesis would then say that you could prevent the recessionary and possibly depressionary pressures.

That’s basically saying there is no economic law.  Economic law is only in the mind of a couple of Austrians, and they are wrong.  But the problem is they (the Austrian economists) are right.  There is economic law.  There are consequences….

“Consequences will come from the outrageous expansion of debt monetization called, ‘Quantitative Easing.’  And there is no way that is just going to self-correct through an ebullient world economy.

The belief that exists now with the central planners, and the belief that exists now with the major influences in the market is that you can, through maintaining the perspective of wealth, offset and cancel economic law.  Economic law is not cancelable.  It can be delayed, but the consequences cannot be stopped.

Continue reading on KingWorldNews.com

 

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Jim Sinclair – Expect $1,000 Days In Gold As West Battles East – KingWorldNews.com

March 8 2013

Today legendary trader Jim Sinclair predicted that the gold market will shock market participants with $1,000 daily trading ranges as the West battles the East in the gold war.  Below is what Sinclair, who has been actively trading the markets for over half a century and whose father was business partners with legendary trader Jesse Livermore, had to say about what is now taking place and what to expect as the gold war continues to rage.

Eric King:  “The volatility in gold that you expect to see, Jim, can you talk about that?

Jim Sinclair:  “I believe you will see a $1,000 day (in gold), and I think you will see it on at least three occasions.  It’s not unimaginable if you go back to the market of the 1970s … And it will happen because kicking and screaming, gold is going to drag the US into a position of a balanced balance sheet, or near balanced balance sheet, if you assume that the gold the US claims to have in fact they do have, and the world will assume that….

“I firmly believe gold is going up into the $3,500 range and higher.  Gold is attached to debt.  A fiat currency has, on the other side of its ledger, debt.  The fundamental occurrences that have taken place over the last few months are not that positive to the dollar.  And today’s (jobs) report will be analyzed very carefully, already showing some significant lack of foundation in the amount of people out of the job market.

So, this time I strongly believe that the dollar will not get much higher than it already has.  (The Dollar Index) will return back into the 70s as gold begins to move toward the $3,500 level, which I believe took place from the low we have already established.”

Eric King:  “Jim, you’ve published some of the works of one of the individuals talking about a wave III going forward (for gold), up to $4,500.  That’s obviously a very violent move.  If we repeated what we saw in the 1970s for gold in terms of performance we would have gold go from $250 to $6,250.  My question for you is, this next leg, this advance in gold, how will that trade?  Because it sounds very violent to the upside.”

Continue reading on KingWorldNews.com