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I find Jim Sinclair’s quote to be extremely interesting.  It will be easy to see if he is correct.  If the price continues to rapidly rise, he gains credibility here.

Take into consideration that the recent and violent drop in the gold price, especially if followed by an equally violent recovery, was primarily for the transfer of physical gold from financial and other entities to the families that are running the Western governments and financial world.

In my opinion that’s exactly what has just happened.  A very strong and immediate recovery, that is sustained, makes the message clear that gold is an ingredient for these wealthy families to maintain their wealth and power, not simply over a generation, but over multiple generations.

– Jim Sinclair on King World News, April 28 2013

Before reading what Sinclair mentioned, above, I was of the opinion that most gold bugs, including our beloved clients, are still unsure of gold’s near-term future.  Thanks to Larry Edelson, and those who think like him, people are sitting on the edge of their chair waiting for gold to reverse course and head even lower toward $1,000.  Markets, all markets, move in a zigzag fashion, and even though gold has risen some $100/oz, from the depths below $1,350, with every “zag” people still hold their breath waiting for the bottom to fall out.  I expect it will continue to be that way until gold moves back up to at least $1,700 or higher.  When it does, I bet Edelson will still not have issued an “it’s time to buy” order.”  His “safe entry” number is still above $1,800 unless he recently changed it and I somehow missed it.

(By the way, Sean Brodrick, who, like Larry Edelson works for Uncommon Wisdom, is bullish on gold.  Two different views – the same firm.  I cast my lot with Sean.)

If Sinclair is correct (this is real fodder for the conspiracy crowd), then Edelson is not only wrong, but doesn’t have a clue HOW the market really works and WHAT fuels the moves.  Sorry, I just don’t believe gold and silver move up and down, freely and without purposeful manipulation, based solely on moving averages and Elliott Wave inflection points.  Sure, human nature plays a part in investing, and we are seeing it now with gold and silver.  Great damage has been courtesy of our dear friend JPMorgan (see article below that documents that JPM sold 99.3% of the physical gold sales at the COMEX in the last three months).

Human nature can be, and IS manipulated.  The last thing the Fed, and their powerful central bank friends need, is for people to start to lose faith in fiat currencies.  Gold is the barometer that indicates the health of the dollar.  Smashing gold down from $1,900 to $1,350 is NOT an indication that the dollar has gotten stronger.  It’s a worse choice today to store wealth, than it was when gold was $1,900.  But you’d never know it if you watched gold plunge.  The question is WHY did gold plunge?  WHO benefited from the plunge?  I think one needs to look no further than JPMorgan and the Fed.  Like I said when I started this rant, Jim Sinclair’s interpretation is pretty interesting and we can easily determine its validity by watching how fast gold recovers.  Hopefully, you won’t be on the sidelines while it recovers because you will never again see these low prices to accumulate gold and silver.   The rising “premiums” (physicals vs. paper gold and silver) and long delays and shortages clearly demonstrate that there are a lot of buyers out there who are not sitting idly by and watching and waiting for Edelson’s bottom to take hold.


The Truth Rises – Coordinated Strikes Work Both Ways – May 1st 2013
After watching the video, factor in Ted Butler’s comments on the tightness of the silver market:

More than ever, the behavior of JPMorgan on the next silver price rally (which, hopefully, has begun) will have the greatest influence on price. Simply put, if JPMorgan adds new silver shorts aggressively, the price will be constrained by some amount. Without those additional short sales by JPMorgan, the price of silver will fly. It’s really that black and white, at least it is to me. Whereas I wouldn’t trust this crooked bank with money for coffee, if the retail silver shortage develops into a wholesale shortage, the trustworthiness of JPM becomes moot; a wholesale silver physical shortage will roll over them and anyone else who stands in the way. As time runs by, there are other things that suggest an upside resolution in silver is closer than ever.

-Ted Butler, ButlerResearch.com