How does Central Bank selling affect the gold market at this time?
*Jim Sinclair's MineSet, by James Sinclair, January 20, 2006
“Every time gold runs hard they pull out the gold-phobic Bundesbank to do a blitzkrieg on the price. Any effort by Germany to sell gold will be offset by China buying Germany’s gold. If that financial vaudeville act was not a cry for help from the shorts at gold $565, I never heard one.
When will the foolish holes in the wall gang of fund managers wake up to the fact that the most bullish thing that happened for gold from 1970 to 1980 was Central Bank selling?
Central Bank gold will never see the marketplace but will be traded between the banks themselves. Should any central bank demand sales into the market, all they would do is facilitate huge buying of major lots at singular prices free of commission. This attracts big money and is therefore bullish. Had gold held $565 today, then I would not have been at all surprised to see it take out $600 next week.
So this is it. The battle of the gold titans is on. This time the naked shorts are the gold fund traders.”
*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.