Will the price of gold double?
*JSMineSet, by Jim Sinclair, April 20, 2008
“As it has been and will continue to be, the action of the US dollar, now more popularly measured by the price of the euro, will be the final voice as to where the price of gold goes next.
Everything we can discuss about gold and the schools of reason above fall fallow to how the euro performs.
Now you can say gold will trade lock tight to the direction of the euro which is one way of saying that, as always, gold is locked at the hip of the level of the US dollar but in the inverse.
There has never been any other driver of gold and there will never be other than the US dollar as the final common denominator.
The euro if you read the 35-year technical picture has a price objective at a minimum of 2 to the US dollar. Yes, the dollar would be worth .50 against euro. That is kinda cute as the USDX has a low price objective at .5200. It seems to confirm the prediction we have had for many years for the USDX.
With each euro worth two dollars, I would anticipate GOLD TRADING ABOVE $1650.
It therefore benefits us to rely on the conduct of the price of the euro right here and now to determine the action of the price of gold.
For what it is worth, the euro firmed Saturday and Sunday in commercial trading. As we speak the euro is at 1.5810.
The sole reason I am entering into the USD$1,000,000 wager agreement that gold will trade at $1650 on or before the close of the COMEX open outcry session at the end of the 2nd week of January 2011 is to demonstrate to you how much confidence I have in my predictions. There is no PR attached to this, nor will I speak with anyone who publishes or broadcasts on this subject.
It appears an agreement will be concluded shortly between myself and a Canadian hedge fund as counsel for both parties. When the details are finalized and legally binding, I will announce the name of the other party here on JSMineset.
Gold’s volatility is only beginning. Regardless, the price of gold is going to a minimum of $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.