Larry Edelson is still expecting gold to fall back toward and below $1500. Jim Sinclair points out that gold has held support above $1550 for eight consecutive times. He does not see a big hit for gold at this time. Who do you want to believe? I put my money on Uncle Jimmie.
Every passing day is another day closer to a strong move up for gold. The only question is whether the move starts in July or a month later. But I just don’t see a big pullback coming now. Gold has been correcting for nearly a year and QE can’t be far off, and with it, the bull market in gold is reborn.
But first things first, and we have to get by Tuesday. Ben Bernanke testifies before the Senate today and the traders “are holding their breath” waiting for a clue from King BB. Personally, I’d rather listen to BB King myself. His words, at least, have real meaning. (Such as “Nobody loves me but my mother and she may be jiving too.”) What can King BB say? Europe is screwed. Our economy is falling off a cliff. The banking system is facing another black eye, LIBOR style. He can say nothing – hold off for a while longer as things continue to unravel or he can use one of his last bullets and say it’s time for another round of QE. Actually, that is his only choice so the question is will he use it or not? Dare he wait any longer? Gold awaits his answer.
As usual, the Gold Cartel steps hard on gold going into the testimony. It’s not that they believe he will offer up nothing today, it’s just their usual M.P. to hit gold on every possible opportunity. These guys are “short” gold and they make money when they influence its price down.
My money is on Larry,his timing some times sucks but he’s eventually proven correct so far.Sinclair made a stunning call of 1650 11 years a go but recently has made one mistake after another.The recent call that IF gold goes below $1600 it will be a quick bounce up again…hasn’t happened.He also said once the USDX goes below .76 or so it would accelerate and that would be the end…hasn’t happened.He also is a bit of a worry over his ‘Spiritual’ side of things.Larry is all business.I haven’t sold an ounce yet and don’t intend too, so I’m with Sinclair on that but I wait for Larry’s call on when to buy more.I think Sinclair has a bit of an ego problem especially with his mantle of ‘Mr. Gold’.There is no taking away from Mr Sinclair the free service he offers from the good of his heart and he is a genuinely good and moral man but he is just a man and makes mistakes…
Your position is understandable. Edelson would probably be correct IF the markets were not manipulated. The only downward pressure on gold is from the Cartel and they seem to be losing the battle with China and Russia, who gobble up every large market offer on physical gold. That alone, SHOULD support gold at much higher levels than Edelsons anticipates. My friend, Trader David R is one of if not the best gold trader in the world and he does not expect to see gold drop to $1500 – but, if it does, he says MORTGAGE YOUR HOUSE and buy all you can. It will be the best deal you will ever see.
I don’t think the ONLY downward pressure on gold is from the manipulation.There is a battle going on to cover debts and gold and silver,with their special properties of being no body elses obligation,are fast becoming one of the few ways to cover that debt so it must be sold as margin calls come in,similar to what happened after Lehman,I believe it could happen again,infact I’m sure about it.When the USDX got down to .76 or so Larry called for the dollar to go as high as .82 or even 83 again,I couldn’t see it but sure enough it did.I didn’t think I would see gold under $1600 or silver under $30 but here we are…
I plan on doing what your trader friend suggests,and I’m waiting on Larrys signal…lets see what happens.