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Most of our readers are probably trying to figure out why gold and silver have been assaulted over the last two days.  Jim Sinclair received over 300 emails looking for an answer.  He was so overwhelmed that he threw in the towel and didn’t answer any of them – instead he issued a bulletin telling his readers:

1.   There is no top in place for the gold price. Absolutely none.
2.   This reaction is an operation using the MSM multitude of reports on the Fiscal Cliff sure to occur in order to scream unopposed deflation (wrong).
3.   The US Dollar and Gold are under pressure by the operators screaming Fiscal cliff, deep depression, no additional stimulation will be provided.
4.   As usual since $248 Gold, they are dead wrong as to the result.
5.   The fact that the Fed is the primary buyer of US Treasuries is the common denominator of all the reasons why gold is going to $3500 and above. This common denominator is simply not going to change for years.
6. The Administration proposes as part of a Fiscal Cliff compromise that the debt Ceiling be permanently removed. That means debt to infinity.
7.   This is nothing more than noise.

-Jim Sinclair, The Answers To Today’s Most Common Questions, December 4 2012

Here’s another take that you may find interesting.  James Turk says:

On a day like today when the metals are getting pounded by the cartel, it’s important to step back and look at the big picture.  And the bottom line here is that we have some tough times coming.  We need to prepare for it, and of course the best way to do that is by accumulating physical gold and silver. 

The reason they are attempting to make gold and silver look weak here is because these monetary metals will provide the foundation when the monetary system is eventually re-constructed, and the price of gold and silver will be far higher than the numbers they are painting the tape with today.  But before that day comes, they need to shake as many people out of these markets as possible so they are victims of the greatest wealth transfer in history, not beneficiaries.

-James Turk, Here Is Why They Are Pounding Gold & Silver Today, December 4 2012

Our friend North of the Border, Ed Steer, wrote:

It hardly seems necessary for me to point out the obvious once again, but it was JPMorgan et al in the market again yesterday…and what they did was very much an extension of what they did on Monday. With the dollar declining below the 80.00 mark, the most likely escape route was taken away as an attractive alternative.

But they can’t keep it up forever…but to hazard a guess as to what’s going to happen on a daily or weekly basis going forward is still a mug’s game…and all we can do is wait this out. I don’t know if “da boyz” have a grand plan or not…but at the moment they seem to be making it up as they go along. And with the monstrous short positions in silver and gold hanging over the market, it remains to be seen how this plays itself out between now and the end of the year…and perhaps beyond.

-Ed Steer, The Wrap, December 5 2012

Goldman Sachs is trying to sell you on the idea that the top is in for gold.  Sinclair calls it like it really is – they want to push the price as low as possible so they can acquire your shares and ounces on the cheap because they are poised to go long!  Do not fall for their ploy.  If you are smart, you will buy as the prices fall, just as they will be doing.

Jim Sinclair’s Commentary

I promised you that the manipulators would shift to the long side of gold before the final parabolic move.

I imagine that Goldman has a huge buy order for special clients, that is themselves.

When was the last time Goldman Sachs did the world of investment and investors a good turn?

IT’S OVER: Goldman Calls The End Of The Great Gold Bull Market Joe Weisenthal | Dec. 5, 2012, 8:38 AM |

Goldman commodity analyst Damien Courvalin is out with a big call: The top in gold is in.

The firm says that the primary driver of gold prices is real interest rates (which have been super-low in the United States, in part thanks to aggressive Fed easing) and that with the economy coming back, this era is coming to an end.

Before you get the details of this specific call, you have to understand the firm’s overall view of the economy.

Last Week, Goldman economist Jan Hatzius made a big economic call … that the era of sub-par, post-Financial Crisis growth would come to an end some time in the second half of 2013. And Courvalin, in lowering his gold outlook, is keying off of this call.

Here are the two key paragraphs from the report:

Improving US growth outlook offsets further Fed easing 
Our economists forecast that the US economic recovery will slow early in 2013 before reaccelerating in the second half. They also expect additional expansion of the Fed’s balance sheet. Near term, the combination of more easing and weaker growth should prove supportive to gold prices. Medium term however, the gold outlook is caught between the opposing forces of more Fed easing and a gradual increase in US real rates on better US economic growth. Our expanded modeling suggests that the improving US growth outlook will outweigh further Fed balance sheet expansion and that the cycle in gold prices will likely turn in 2013. Risks to our growth outlook remain elevated however, especially given the uncertainty around the fiscal cliff, making calling the peak in gold prices a difficult exercise.

Gold cycle likely to turn in 2013; lowering gold price forecasts 
We lower our 3-, 6- and 12-month gold price forecasts to $1,825/toz, $1,805/toz and $1,800/toz and introduce a $1,750/toz 2014 forecast. While we see potential for higher gold prices in early 2013, we see growing downside risks.


-Jim Sinclair, In The News Today, December 5 2012

Trader David R’s response to GS’s press release:

Yeah when was the last time GS was right on a call of theirs? They love getting people to sell because they are really bullish.  I attached a simple chart on why you cannot be short gold.  This move in gold is due to hedge fund redemptions.  Hedge funds are flat on the year and against S&P’s + 12%, they are basically down 12%!

The Hedge Funds are selling their profitable trades.  Goldman Sachs is hoping to buy the gold and mining shares that the weak hands will dump.  Any pullback is not based on fundamentals and will be short-lived.