In the News Today

View the original post at jsmineset.com...
December 03, 2010 01:29 PM

Jim Sinclair’s Commentary

A “Great Day” in gold at $1,400 plus, third tap success, and a really "Bad Day" for the long bond!

Does this look like the final Pillar of Gold at and above $1,650 has fallen in? I think it has so get ready for a $75 up day in gold and 200 points down on the long bond.

When I think of the gold and gold share shorts, I also remember the expression: "Those that the gods wish to destroy they make mad first."

The short of juniors and long of majors OTC derivative will be fried.



Jim Sinclair’s Commentary

Afternoon thought:

Karzai’s clear snubbing of the President today is an insult to the office of the President more than to any single person. This reflects the lack of respect a country gets as it destroys its currency, its seniors, eliminates ethical practices and ignores the history of other such events. No damage control MOPE can erase what has taken place.

Dear Jim,

Yes, quite unfortunate indeed.
Reputation is a function of present and current actions.  Both are equally important.  If our current actions ignore that which built our reputation, confidence will erode.  The loss of confidence in a monetary system without a gold conversion is an end game scenario.

CIGA Eric De Groot



Jim Sinclair’s Commentary:

$1650 is on its way via a New Year rally in all things gold, according to CIGA Luis Sequeira

New High for Gold in Euros as Debt Fears Cause Safe Haven Flight
By: Peter Cooper, Arabian Money

Europeans worried about the collapsing value of the euro are buying gold as well as switching into dollars. This is keeping both the yellow metal and greenback rising in value although normally they move in opposite directions.

Gold hit a new all-time high when priced in euros yesterday as the European currency took a battering again in foreign exchange markets. The Irish bailout deal last weekend failed to calm forex markets, partly because the deal may still be rejected by the parliament on December 7th and partly because the buck now passes to Portugal as the next target for bond vigilantes.

Growing eurozone crisis

The eurozone is still in crisis. And problems at the periphery threaten to move closer towards the core. Yesterday even French bond yields ticked up as the crisis deepened for Portugal and Spain, although next in the firing line are Belgium and Italy.

Gold is a logical choice for Europeans still anxious about the dollar and its debt mountain. The yellow metal is priced in dollars and so has the benefit of hedging the declining euro while not actually being linked to the Fed’s monetary policy. It also serves the same function for the UK pound sterling.

More…