Notes On Governments Making Gold Illegal
October 21, 2012, at 7:58 pm
by Jim SinclairOn the day of illegality, yes, compensation will be paid, market related. That is what occurred under Roosevelt. This is a key point that the community writers seem to ignore or maybe do not know.
The community fears confiscation without compensation because the gold experts in the main are far from experts.
I do not, however, agree with confiscation as gold in the 1930s had a clear and then present utilization in the monetary order. It does not now.
Read the full article at jsmineset.com
On October 15th, I featured Trader David R’s comments on where he felt gold and silver were headed. Looks like he was right. We are now approaching the end of the manipulated pull back. Get ready to jump back in.
Here is what David R had sent to me:
$1740 needs to hold in gold otherwise we test $1,690. Silver looks very heavy and if we go to test $1,690 in gold, silver will test $30. Overall the market seems heavy here. I don’t know what is up at $1,800, but can only assume the central banks that bought gold around $1,550 were taking profits up there. Overall down around $1,690 will be a dip to buy! Government printing $75 Billion per month, but if U.S. data continues to look good then no roll of operation TWIST could mean much lower metal prices. It’s a very tricky market right now.
Check out this gold chart posted on Jim Sinclair’s site by Erik McCurdy, Senior Market Technician at Prometheus Market Insight. Gold has to hold $1,720 or the next support is just below $1,680. These numbers are very similar to David R’s numbers.
Another of my TA (technical analysis) sources says gold should hold at $1,720 and silver at $32. Either way, this is not the end of the world and we will test $1,800 and $35 again, after the election.
Here is some of the most important information yet from Jim Sinclair. He has taken the time to explain the way the insiders play the gold game. Much of it is at odds with what you will read from your favorite newsletter “experts.” I take this very seriously and I hope you will too.
How A Metals Dealer Works – Jim Sinclair
It’s not there yet ($1690) so TDR is yet to be vindicated.
And if it does – so what? If you read all of the predictions and try to follow and check on them, you’ll find that all the pundits are exactly correct at some point, and exactly incorrect at just as many other points. Even a broken watch is exactly correct on two instances EVERY day!
There are some making ridiculaous predictions like “gold will hit $xxxx within 3 to 5 years. Give me a break. That is complete BS and in no way any sort of prediction.
They all use technical analysis. Many of the hedge funds use computers, programmed with algos, that determine when to buy and when to sell. In a sense, it becomes a self-fulfilled prophesy. Remember, Trader David R makes a living by understanding the buy and sell inflection points. That doesn’t guaranty the numbers will be correct, but he is almost always very, very close.
As I recall, the last time i used David Rs numbers was before gold rebounded this fall and he said to back up the truck at $1500 – he was within 2% of the bottom! His current number is open to debate – time will tell.
Would you prefer to have no guidance, and just sit back and make your moves well after the fact and totally in the dark?
One way to avoid all of this is to buy, hold, and forget about it. In the long run (several years), the prices will be much, much higher as the dollar loses its status as petro-dollar and reserve currency.
No one is twisting your arm to believe anything you read. I, for one, have placed a seven-figure bet that these projections will be correct. I put my money where my mouth (predictions) is. Perhaps you should just avoid the gold and silver markets, and probably all markets, since there is not enough “certainty” to suit you.
As for the “complete BS” comment, – I take it you are a new comer to this market, or at least a new comer to Jim Sinclair. He predicted boldly, in 2004, (backed by a one million dollar bet he personally guaranteed) that gold would hit $1650 in early 2011. He only missed by three or four months. And that was looking seven years out. Is that also “BS”?
Does Trader David R’s decade plus experience, working for some of the largest bullion banks gold trading departments in S. Africa and running it for Barclays in London and heading up the commodity trading division of one of the most successful hedge funds in NYC for several years count for nothing? Perhaps in your world it does. In mine it doesn’t. Most of the people I quote I have known personally for many, many years and they have proven their worth.
Maybe it just makes you feel better by knocking Jim Sinclair. No one has offered more quality information (and for free) or been more correct than Sinclair. If you want to knock anyone in this industry, try Larry Edelson, but leave “Mr. Gold” alone. Taking Sinclair to task only reflects on your lack of understanding.’
All of our work here, at Miles Franklin is designed to make things easier for our readers, not to confuse them. We are not infallible but we do try, to the best of our abilities, to help you understand the way the markets are working and present our best efforts to help with short-term moves, though that is not a science and depends on what JPMorgan and friends have up their sleeves.
Respectfully,
David Schectman
David,
Thanks for your reply.
I didn’t actually mention Jim Sinclair in my previous response, nor did I allude to him. As I said, there’s no shortage of pundits making all sorts of predictions. There is an increasing number of Monday Morning Quarterbacks – Jim isn’t one of them. He’s been there and done it all, and hats off to him.
I do not understand what Jim talks about most of the time, because I don’t have the technical knowledge you spoke of. Therefore it would be stupid of me to comment on what he says. In any case, the average Joe like me is not in any position to implement Jim’s highly technical strategies, and he pointed this out in a follow-up to his missive about the naked short/naked long spreads strategy. But one thing he keeps hammering about I certainly do follow, and that is to stay out of paper instruments, and keep accumulating physical PMs. On that much I’d say we are all in agreement!
I’m not going to denigrate TDR’s experience or knowledge, since I am not in a position to do that either. It’s just that I prefer Andrew McGuire’s view over his. That’s all. Nothing personal.
Best Wishes.
Mark