Pixel8r

Jim has upped his $1650 target Jim Sinclair’s Commentary There is no practical solution to the present credit market problems. There are only acts of desperation in reaction to each crisis further corrupting the shaking foundation of the US dollar. This is an act of monetizing bankrupt home mortgages. Bankrupt home mortgages have more problems than just resets. This is the application of a tool that is guaranteed to put additional pressure on the US dollar once the fooled fools wake up. This is how Weimar got into irreversible monetary problems. This implies that I am wrong about gold only reaching $1650 and brings into play, fundamentally, the possibility of the two Angels above this level. Have you protected yourself from what is now inevitable?

Suggest you have a look on the GEI Mining & Precious Metals forum.

We have a ringside seat to the greatest show in the world, going to be very interesting viewing over the next few days.

I find it interesting that the USDX is now at the 50 day MA on the daily chart. Hopefully tomorrow will be a kiss goodbye to all talk of a strong dollar policy and the index will get below 0.71.

Jim has been overrun with phone calls again! Dear CIGAs, The wave of phone calls from all over the world overwhelmed me once again today. Here are your answers: As gold rose and the dollar slipped once again into the .7200 area a poor picture was being painted as legislative action neared for Fanny and Freddie. It seems that the key panic point is .7200 on the USDX. The Fed's perma-hawk spoke loudly about what will not happen - Fed increases of the discount rate. Crude came down today, blamed on the apparent hurricane fear fading. Major support starts at $125, and if that is not the bottom it will not be far below. All the dollar bulls and energy bears were pulled out of the closet as talking heads. Fancy accounting footwork is the entire reason why some bank earnings look better. They are not. In fact many of the best looking ones are the worst off. $25 billion for Fanny and Freddie will not cover a $5 trillion problem. It isn't even worth being called a bandage. After all the substance-less noise used to paint the day better passes, we return to face the 3rd attempt at $1000 and the euro moving past $1.60. Gold is headed to $1650 and the euro to $2. That is only for starters. Respectfully yours, Jim

Below is Jim Sinclairs commentary on the current situation. Posted On: Wednesday, July 16, 2008, 4:07:00 PM EST The Day Of The Talking Heads Author: Jim Sinclair Dear CIGAs, Do not believe the incredible parade of good tidings from the Fed and the Treasury when the credible is starring you square in the face. Many still need to protect themselves, and this is welcomed opportunity for them to do so. We did hit $990 on the upside which suggests the downside is within reach of the present levels at $940 to $950. Toughen yourself to the volatility of the market place. Charts are being painted and you are being played. Quality junior gold shares are reaching a point from which an expectation of 1000% or more on the upside is not out of the question. Gold is headed to $1200 this year and $1650 in time. The US dollar will trade at .62 and .52 on the USDX. Today is part of the Greatest Show on Earth with a sideshow of Believe it or Not. The answer is NOT. Gold has major support between $940 and $950. That should be it on this reaction. We shall see as I have only had two sessions to come up with an answer. Regardless, nothing has changed and today was officially full of talking head madness. Respectfully yours, Jim

Ben is on Bloomberg at the moment.

Tracking Junior Miners - Why Are they Underperforming? Could this be the answer? 2nd hour - The Greatest Crime in History http://www.financialsense.com/fsn/main.html

I had a good day until the close as usual. It's a amazing when you look at Tumi stock yesterday 1300 shares @ $0.36 where sold at close and the stock has moved by 5.26%. So a sale of $426 / £210 moves the company 5.26%! This is a really good example of what Jim Puplava and Jim Sinclair have been talking about in the manipulation of juniors.

I don't think people are truly convinced that it is going on. Jim is calling it "the crime of the century". I might have to subscribe to level 2 access, just to prove to myself it is happening. Has anyone watched these big targeted sells at the end of play?

Could it just be that people are spending more in the shops because everything is more expensive. I was shocked yesterday on doing the weekly supermarket run.

I have passed this onto a few that I'm invested in. It might be worth doing the same.

or £1500 if the exchange rate drops to 1.5/1. Which considering the amount of trouble this country is in is the minimum IMHO.

This is strange as goldmoney will sell you silver at spot, that you can arrange collection from London on 1000oz bars, and their offfice is in the channel islands.

Be careful there is a lot of evidence around that they may not have the amount of Gold/Silver they claim. Check Jason Hommel's investigation into Perth Mint - http://www.silverstockreport.com/2008/perth5.html. Also here's a recent warning from Jim Sinclair

Not quite, 73.65 seems to be the channel top. here's some comment of jsmineset.com

Have you read his book "The collapse of the dollar and how to profit from it". What he is saying now is a repeat of everything that's in the book, which was written in 2004. There is an updated 2007 paperback version out now. http://www.amazon.co.uk/Collapse-Dollar-Ho...5240&sr=8-1

I agree, gold will remain the only lasting global currency. I am more thinking of events in my lifetime, another fifty years if I'm lucky

Hate to disagree with your posts Goldfinger, but believe gold & silver do regularly get replaced by Fait currencies. What they need to do to make that happen is raise interest rates, so that the fait currencies gain strength again. The only trouble is that they can't do that at the moment due to the massive financial problems. This is what happened at the end of the 1980s bull run, Volcker raised interest rates and people started to move back to the dollar. Gold & silver although are money, that don't pay interest. The dollar is currently paying negative interest rates, hence the strength in PMs. Once they move to a real strong fait policy, things will reverse, just I am unsure as to when, if ever, they will be able to do that again.

Not sure it has been going down as much as you think. Found this article shows production has been increasing, but has slowed over the last few years. Gold production is flat with higher prices ahead in 2007

I believe it to be more insurance than speculation.

I use this; http://www.livecharts.co.uk/MarketCharts/gold.php If you click on the blue option button, that appears when you hover over the graph then click the check box marked osc. There is also one for silver, with volume. http://www.livecharts.co.uk/MarketCharts/silver.php

Volcker Says Fed Interventions Risk Political Battles - Bloomberg 14/5/08

It appears that the POG has now been taken down so much that there efforts are now useless!