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Yesterday, I received the following email:

Guys I’ve been following your blogs for over two years now.  I respect your views and insights into the gold and silver market. But it has to be said last year you all predicted at least $2000 an ounce gold and $50 an ounce silver by the end of this year.  Well it looks like you’re all wrong and about that.  Gold and silver won’t go to predicted prices whilst the cartel JPMorgan and Co. are manipulating the market.  This has been going on for years and years.  They will never let the prices rise, so stop kidding yourselves and everyone else. Cause your wrong unfortunately just admit it.  The system is corrupt in the banksters favor…

This is an excellent email and I suspect the author speaks for many of our readers.  So, let me address his comments.

Yes we did predict $1900-$2000 gold by the end of this year and yes, we thought silver could hit $50.  O.K., I admit it, I was wrong.  But my error is not in the “number,” but in the TIMING.  That, dear readers, is the risk of predicting a price and a date.  But that’s no reason to stop predicting.  Just don’t bet the farm on our predictions, at least not our SHORT-TERM predictions.  I stand firm, along with Jim Sinclair, that we WILL SEE gold at $3,500 or higher within the next three or four years at the outside.  That will translate into $75 – $100 silver.

As far as the comment “they will never let the prices rise,” well, I strongly disagree with this comment.  JPMorgan and Goldman Sachs before JPM have shorted and manipulated gold and silver relentlessly SINCE 2001!  And guess what – gold still managed to rise from $252 to a high of over $1900, and currently just under $1700 while silver moved up from $4 to $50 and is now a bit above $30.  If the “boyz” had control of the gold and silver markets, why did gold rise seven-fold and silver eight-fold in the last decade?  The fact is, JPM can move the market in the short-term, but cannot hold back the price over time, nor can they stop the power of the bull market.  No one can, not even the central banks.

JPM rules in the COMEX pits but not in the real PHYSICAL world.  Every time they push the price down, buyers from India and China, not to mention the central banks, rush back in and buy the dips and up goes the price.

Yes, the system is corrupt and it has been since the start of the bull market, but that doesn’t mean that the bullion banks and funds can control the price beyond an occasional raid.  Even though 2008 was, by my standards, a bad year for the metals, gold will still finish the year UP over $100 and silver is up even more, on a percentage basis.  If that is “controlling the market,” I say, let them keep controlling the market.

I urge the author of the email to get back in touch with me in March and let’s see if my predictions look bad then?  Sure, I may be off a few months, but I will not be wrong.  Either cut me some slack or ignore my predictions.

My track record has been pretty good for a decade but not perfect.  As our friend Ed Steer (and Ted Butler) says, “Gold and silver will rise when JPM is ready to let the price rise.”  They make money by playing both sides of the trade.  You can’t always be JUST SHORT the market; they knock the price DOWN so they can buy gold and silver back cheaply.  Notice I said, “buy back,” and they do.

You are falling prey to their strategy of turning gold and silver bulls into doubters.  If you give way to this, they win and you lose.  I’ll finish this up with a quote from Jim Sinclair on Wednesday – it sums it all up:

What is happening now is the Great Train robbery whereby the Goldmans of this world will take a huge long position in gold under the beard of manipulation and control of popular gold guys plus financial TV.

Please tell our Euroland friends to simply hunker down because this is as much of a passing cloud as was every single reaction since $248. Once these blackards take all the CIGA gold they can get, we are off to $3500 and above. This is not something I think. This is something I know.

-Jim Sinclair, Jim’s Mailbox, December 19 2012

And here is one more bit of information that you should consider, before throwing in the towel and finding fault with those of us who know better and refuse to…

The indicators technically are at the same levels as 2008. A trigger to reverse course is very near.

Sharks are buying at big discounts and bargain hunting time is here. I’m sure the extremes will work on both sides.

– CIGA Luis Ahlborn Sequeira, Jim’s Mailbox, December 19 2012

Just to be sure you understand WHY gold is not living up to “expectations,” for now….

How To Read The Negative Pressure Over Gold And Gold Stocks

December 18 2012

By Jim Sinclair

Dear Jim,

How should I read the negative pressure over gold and gold stocks? What’s going to change this negative scenario?



Dear CIGA Arlen,

This is capitulation everywhere. This event has been a manufactured market move since $1800, with clearly planned and executed intervention. The gold price takedowns during low volume periods internationally is a known price moving only tactic.

I simply shut off the machine because all the regular causes for the gold price will make themselves effective with time. A manufactured market event will not change the trend. Even the most professional can be reduced to sheeple by their emotions.

I refuse emotions and emotional people in a market context. To save yourself from all this that has happened and will continue to happen requires commitment and courage.

You have it or you do not. Admit who you are and act accordingly.

Like every mistake made by Westerners, what you see today is simply driving gold into Asian control.


In our e-mail newsletter, I lead off with a few insights from Jim Willie.  Jim writes on of the finest financial newsletters on the market and I highly recommend it.  Ranting Andy Hoffman also loves Willie’s work.  We both subscribe to his Hat Trick Letter.