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Gold/Mining/Energy : Century Mining Corp. (CMNCF) (Bulls Board) -- Ignore unavailable to you. Want to Upgrade?

To: NYBob1 who wrote (1)	6/11/2007 6:45:57 PM
From: NYBob1	Respond to of 3

30 Year Treasuries - Where Have All The Big Buyers Gone? Posted On: Monday, June 11, 2007 Author: Jim Sinclair Dear CIGAs, According to the Financial Times, the degree of confidence was so high amongst US Treasury traders that as the ten year US Treasury approached 5%, the longs crowded the market. When the big buyers failed to show up the Treasury Bond market regurgitated the longs as the major, major trend line broke down. My instrument of interest is the 30 year Treasury as inflation is powerfully factored into this area. You will notice on the Pillars illustration the long bond is a key item to gold demand as it impacts the US dollar. You need to keep in mind that the selling of US Treasuries increases the supply of dollars that most world central banks, whether they admit it or not, wish to reduce in their portfolio percentages. As such the central banks are certainly not buyers but rather sellers of these instruments. As such, the central banks who are the “big buyers” would be absent. As far as the Treasury International Capital Flows report is concerned, a continued bull market in equities means a continued inflow of capital into the US. With the attraction of US Treasuries on the wane, you can easily see why the PPT (Plunge Protection Team) needs to be on top of things. In truth you have to give them credit as they have sprung into successful action now since the 2000 break. It is important to keep in mind that from 1977 to 1980 the long bond declined from nominal value 88 to nominal value 49. At the same time gold rose from $150 to $887.50 while the US dollar chopped sideways between a .85 low and .90 high on a reconstructed USDX. The bombing of gold over the breakdown of the 27 year bull market in the long bond is a temporary event. As far as the bond market supporting the dollar goes, historically it would take a break by the 30 year or 50% of its present value to assist the dollar, and then only moderately as long as inflation is present. The fundamental factor is the increased dollar selling of treasuries from the hands of the sellers who have expressed a willingness to diversify out of the dollar. The assumption that a bear market in bonds is automatically a bull market in the US dollar and thus a bear market in gold lacks historical precedent. The black boxes that engineered the decline in gold set off by the deceleration of momentum out of Spanish gold selling is temporary. As the momentum of the decline in gold slows and breaks out from the down trend line the black boxes will be full gear bullish. They will in fact start on lower downside momentum the moment the power down trend line breaks to the upside. Markets are run by algorithms and that is it, period. When you can throw a dart in the equity market and win it is hard to interest a general public in precious metal shares. One will end and the other starts on a momentum basis which will key in the black boxes to diversify from general equities into gold equities. CMM - Gold is headed to $761, $887.50, $1000 and $1650. JP Morgan does not agree entirely as a popular analyst there sees $1000. In a major investment banking firm you are a team players and do not publish opinions that goes diametrically opposed to the analytical department. Imo. Tia. investorshub.com app.quotemedia.com investorshub.com