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Have the fundamental reasons for a rise in gold changed?

*JSMineSet, by Jim Sinclair, March 19, 2008

“The reason for today’s drop in gold, among other reasons given by media, was the Federal Reserve’s mentioning of inflationary warnings. This is outrageous as the Federal Reserve opens the flood gates of monetary expansion by offering to make loans to investment banks, two of which took up the offer today.

Apparently the equity market has not taken the bait that was entirely set for the best interest equity market. This makes today a total flop for the stabilizers (manipulators). This makes me think that the giants of finance have run out of aces. This is certain when the famous names run to the Federal Reserve to shore up failing balance sheets and depleted liquidity.

Being in gold it is hard to see the forest through the trees. All you feel is a headache as the gold price takes on the volatility of a shooting star.

Sit back and look at the media blitz operation in the gold and energy market followed by a major flop in the equity markets. It appears that the old manipulation of perception has fallen flat on its ass for the first time in 27 years. The big name investment banks today ran to the Fed for money, exposing the lamest of excuses to show that it is not a stigma to scream to mommy the moment you are in trouble.

Gold is a small market and energy is even more so. The equity markets are huge and the dollar market is a giant. Energy and gold were down, the dollar was up against the euro but down against most other currencies in a mixed market, yet the stock market bombed out completely. That was clearly not the PPT and Fed’s plan.

I have no doubt whatsoever that gold will trade to at least $1650.

Inflation is out of control because the growth of monetary stimulation has no sane limits.

Soon the US Federal Budget will also balloon out of control.


*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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