You are now witnessing the bull doing its best to “throw you off.” This is NOT the time to bail out. I am serious when I tell you, this is the time to add to your positions. Nothing fundamentally has changed! In fact, the fundamentals have never looked better for gold and silver. Stick with us on this. You will not be sorry.
I know that doubt is creeping in with many of you. Even the editor of the hard copy Miles Franklin Quarterly, who has invested in gold and silver for nearly a decade, emailed me and asked if she should sell now. She is retiring this year and is worried.
This is a good time to think like Sherlock Holmes. When you eliminate the impossible, what is left is the truth. What is impossible is for us to grow out of the debt and spending mentality in Washington. QE is a certainty. That said, so is the resumption of the precious metals bull market. It’s merely a question of when and the “when” is not far off.
Here are a few important comments from Jim Sinclair.
Your Greatest Enemy Is Your Emotions
May 14, 2012, at 3:21 pm
by Jim Sinclair
My Dear Extended Family,
Your greatest enemy now is your emotions. In fact it is the only tool that can be used against you.
If you have not taken margin your worst-case scenario is the pain of quoting. I have suggested at various times since $248 gold that you dig a hole, jump in and pull a rock over your head. Each time I did I was derided thoroughly by the shorts. Each time I did the price of gold went significantly higher.
The price of gold is going much higher. The problems that give gold its reason to go higher are growing, not waning.
The entire thesis for gold is illustrated by the three Skiers posted on the weekend.
There is no political will for the results of an EU break up. There is no way the Fed is going austere as the austerity is exploding in the face of Europe politically.
There has been no decline in the amount of notional value of OTC derivatives outstanding. If you think Morgan is the only derivative problem out there you are quite wrong.
Stay the course, stop looking every few minutes, and quiet your emotions. Gold will trade at and above $2111 after this reaction is completed.