Where are we in the gold/silver generational bull market?
*Jim Sinclair's MineSet, James Sinclair, April 3, 2006:
"As gold approaches the $600 level there is some selling of gold
shares. This is not uncommon as penetration of round numbers usually
presents a problem to any tradable item. Fund managers will offload at
these points because of this.
What is different about gold as it approaches $600 (which few analysts
with credentials expected)? It will move above $600 with a probable
overrun of our magnet at $612.
The US dollar has lost its morning gain and appears now as if the .8900
is within downside reach.
Geopolitics is a snake pit with Iran literally firing warning after
warning at the West. Clearly there is a civil war in Iraq that will not
go away. The assumption that one can control hate once instilled and
inflamed is without precedent.
One opinion is the US and Iran will attempt to create a state in Iraq
comparable to Finland in the cold war. Good luck guys because neither
of you now control that rat’s nest.
Nigerian oil is of special character that makes it quite important to
the world supply. Either the shaky government there give the rebels
what they want (a piece of the pie) or supply problems will continue to
increase.
Gold has a magnet at $612 which will probably be overrun. After that
$682 and $887.50 will be exercising their powers on the price of gold.
Meanwhile all the zigzag in gold and gold shares is a waste of effort,
emotion and money. Let the traders do their thing, but remember it is
all noise and usually folly."
"Gold appears it will set a bear trap here before it actually goes deep
into an overbought situation. The magnet is still pulling at $612.
There will be some hesitation before $600 is met and passed.
You should be more concerned about gold going ballistic above $600 than
how it plays at the round number syndrome.
Keep in mind gold and silver are only at the threshold of their
generational bull market. As far as gold is concerned the pull from the
front is $612, $682, $887.50 and $1650."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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