Why is owning gold a better bet than being short stocks?
*JSMineSet, by Jim Sinclair, January 31, 2008
“There is no way the equity markets would be allowed to decline without significant, even heroic action by the PPT.
Can you imagine the big three, the President, the Secretary of the Treasury and the Fed Chairman taking action followed by the equity market barfing? That simply cannot happen or maybe the entire initiative would be lost.
Keep in mind liquidity is the grease of the equity market wheels. As such, as much grease as required will be produced.
No matter how much you want to be short general equities investments, be careful. At the least the rallies will be wild things to behold. Shorts in equities must be traders.
Two market magnets are pulling gold. The more powerful is at $964 with the weaker at $900. The $900 is those who say, “Hey, gold us up on the short term reduction in supplies due to the RSA electrical problem and therefore should come down.” The other side says: “OK, but you have not understood the real RSA situation. RSA is moving to power load sharing. Translated bluntly, that means “Power to the People,” not the mines. The US dollar looks like really bad dog food. Gold is headed to $961.00, will hesitate, move on to $1024 and hesitate once again before continuing its trend.” The latter is of course the more correct take on the situation.
I say it chops between this week’s low, which is a great buy, and $936, takes out $936 and then captures $961, falling back briefly to $935-$940 and then moves onward to capture $1024.”
*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.