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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (754)	11/19/2003 1:14:33 AM
From: Andrew	Read Replies (1) \| Respond to of 29622

Gold breaking over 400 with tremendous bearishness toward USD. From J Sinclair tonight. Tuesday, November 18, 2003, 8:02:00 PM EST Gold Market Summary Author: Jim Sinclair The Day the Dollar Reserve Standard Collapsed Here we go just like in the late 70s. How history loves to repeat itself. The big difference today, however, is that we are dealing with a coiled spring whose kinetic energy exceeds anything I’ve seen in recent memory. There is a significant possibility that the telling figures presented in Warren Pollock's piece constitutes the big whammy we've all been expecting. Those auctions may have been a failure - not the success portrayed by the media. If an underwriter or his associates are forced to buy a significant part of the stock he is underwriting, then the deal is a flop and nothing else. One thing is clear. Many governments not only passed up on the bond offering but in fact liquidated positions. I witnessed the "follow the leader syndrome" of central banks in the 70s and rest assured it will happen again. The worldwide "Dollar Reserve Standard" sold so successfully to so many countries by the IMF and the World Bank is history and will now unwind. Many will figure out what I have told you here so the dollar has only one way to go and that is lower. Neither the US Treasury nor the Fed have the ability to change this situation because the world simply has too many dollars. Don't kid yourself. The case now pending in the New York Federal Court whereby the US government is asking the New York Federal Court to grant the US Executive branch the right to jail any US citizen deemed a terrorist without any legal recourse will not go unnoticed. Money will scream out of the US dollar that historically has found safe haven in North America. The US dollar market is looking just awful. It is well below the neckline of one of the most bearish Head & Shoulders formations I have ever seen. You can compare the chart of the US dollar directly to the chart of Enron just before its bankruptcy. They are duplicates. Simply overlay a mylar of the dollar chart with that of Enron if you want to test your risk for a coronary. Could the US dollar market go into a massive plunge? What is out there to stop it? Not the Exchange Stabilization Fund because if would swamp its capital. Not the Fed because the means of doing so are the exact means that got the US dollar into this position in the first place. Is gold going over $400 now? No, it's going over $500 now. jsmineset.com jsmineset.com Here’s something from Richard Russell, perhaps the finest commentator on gold and markets on the Internet today. His position on gold is clearly stated and "unhedged" I might add: "So this is my position -- I believe gold below and even somewhat above 400 dollars an ounce is dirt cheap. In view of the amount of Fed-generated fiat paper that will have to be churned out in coming years (it will be in the multi-trillions of dollars), gold is the cheapest thing around. The US government, states, cities, corporations and individuals are currently loaded with $32 trillion in debt. On top of that, the US government has additional unfunded liabilities of around $44 trillion, all of which will have to financed. For these reasons, it's my thesis that gold at $400 an ounce is ridiculously cheap. As a comparison, gold today is less than half the price it was at its 1980 high. I believe three or four or five years from now we'll look back at today's price of $400 dollar gold and ask ourselves, "Where the devil were we? What were we thinking about? Gold at $400 was cheaper than dirt. Why didn't we recognize this back in the year 2003?" As I see it, this is one of those rare times in an investor's life when he can buy an undervalued asset at a bargain price. This is a time when you can buy real money with fiat paper. At this time you can buy real money, gold, with "junk" fiat paper which is created "out of thin air" by the Federal Reserve. Big profits have already been made by those who bought gold and gold shares two or three years ago. But that is nothing compared with what I see ahead -- as the bull market in gold moves on. We are now in the accumulation phase of the gold bull market, This is the phase where seasoned, knowledgeable investors build their positions -- even while the public and most neophyte "investors" are either ignorant of what's happening or at a time when the public actually dislikes the very product which could make them a future fortune. But the secret to all this is the necessity to ACT. Knowledge is wonderful, but in this business, knowledge isn't worth a damn unless you have the courage to "pull the trigger" -- to ACT" Amen to the incomparable Richard Russell. Spot on and in COT's face too! Years ago, I financed Sutton Resources by trading the gold market and plowing millions in profits back into the company. I am now doing the same thing for TNX - leveraging my leverage so to speak. Success is my destiny and, with me, yours as well. There will be bumps in the road ahead but the ride will be both memorable and lucrative for anyone willing to stay the course - I guarantee it. jsmineset.com