Jim Sinclair 'Mr. Gold' is kindly spending a lot of
time and effort into educating and replying to emails.
Here is a response to a question I posed yesterday.
>Mr. Sinclair I greatly appreciate the time you are giving >to this
>effort. In a moment of frustration you posted on USAGold >a year or so
>ago how even if a short squeeze drove gold way up it >would only fall right
>back down again after.
"This remains for me a great concern. However, I may not have expressed myself clearly. It was not frustration that drove me to say what you have correctly reported. It was my knowledge that the longer the gold cartel attempts to prevent gold from rising the more the market will coil. Coiled market can explode when they finally establish themselves in the fundamental and technical direction a major manipulation tries to prevent. Manipulation to prevent primary bull or bear market have always failed in history. successful manipulation propel market in a direction that they wish to take anyway. My concern is that a melt down of the huge $300,000,000,000.00 gold derivative position will negatively effect the huge $72,000,000,000,000.00 mountain of derivative sewage. Should that happen and it could any day, even tomorrow, gold would go ballistic to $1450 to $1750. After all the short covering was completed who would buy it? That my concern."
>This would imply that stockholders like
>myself would have to sell out in that narrow time window >on a scale up
>as where a squeeze like that would top out is anyones >guess
"Yes, in the case I outline above.. "
>Do you
>now see a higher price holding a good part of the gain ?
"Not at those levels."
>(I had planned on selling 20% at 325, 20% at 365, 20% at >418, and hold balance.
"Gold shares rule gold bullion at key levels. Do your selling on TA analysis of your individual shares. Do not key sales off bullion." |
