QUOTE OF THE WEEK:
Commenting on the volatility seen in the gold market this week, veteran gold
analyst James Sinclair (www.jsmineset.com) said on Tuesday evening, "I am not in
the least concerned that the Bull Market in gold is over or that gold will fail
to reach the levels of $1650. The violence is a product of the huge money
moving through the tiny gold market powered by mindless computer-based TA
systems. Rather than depressing me it has impressed me in the sense that on the
upside the violence will be a multiple of what we have just witnessed."
Also this week, Crisis Investing author Doug Casey, in his "What We Now Know"
newsletter, had this to say about the Dollar, the Fed, the deficits and gold:
"The biggest single problem...is that there are trillions of U.S. dollars
outside of the U.S. Unlike Americans, foreigners have no reason to hold them.
And at some point very soon, perhaps when the Fed finally hits the wall on its
ability to raise rates, these overseas dollars are going to start flooding back
home, while the products and titles to real wealth flow out of America.
Therefore, when the trade deficit starts turning around - which most people will
think is a good thing - that will be the real tip-off the game is over.
Trillions coming back into the U.S. will skyrocket long-term interest rates and
inflation. The dollar will go into freefall.
But although I think these are things to watch, to my way of thinking it makes
no sense to wait until the stampede starts to try to get out the door. If you
haven't done so already, take advantage of the current correction in gold to
begin repositioning your portfolio for what's next." |
