Posted on 03 November 2012
The gold market was hit by selling late last week but long-term
holders of bullion should hold steady and not panic, according to the
most successful trader from the 1970’s gold boom, jim Sinclair who now
runs a junior exploration company in Tanzania and publishes a popular
website. His website sees support for the gold price coming from China.
‘Come Monday, Asian value buyers will be into the market,’ says a post this weekend. ‘Some may want to try to get $1,650 prices or wait until Tuesday to get a better price, but will quickly snap up gold as they see the price start to go up. These physical buyers will be buying on as the price starts to press $1,700 for fear of missing this brief pullback in price.’
Chinese savers
The writer explains: ‘The Chinese government has encouraged it citizens to buy gold. This is a saving culture with little faith in governments and currency. These avid savers have already bought large amounts of gold and will be buying more under the assumption that ‘If the price was good at $1,750, then it’s great at $1,700!’. This is how value buying works.’
More> Chinese gold buying will revive the price after the US elections next week reveals ‘Mr.Gold’ Jim Sinclair
The gold market was hit by selling late last week but long-term
holders of bullion should hold steady and not panic, according to the
most successful trader from the 1970’s gold boom, jim Sinclair who now
runs a junior exploration company in Tanzania and publishes a popular
website. His website sees support for the gold price coming from China.‘Come Monday, Asian value buyers will be into the market,’ says a post this weekend. ‘Some may want to try to get $1,650 prices or wait until Tuesday to get a better price, but will quickly snap up gold as they see the price start to go up. These physical buyers will be buying on as the price starts to press $1,700 for fear of missing this brief pullback in price.’
Chinese savers
The writer explains: ‘The Chinese government has encouraged it citizens to buy gold. This is a saving culture with little faith in governments and currency. These avid savers have already bought large amounts of gold and will be buying more under the assumption that ‘If the price was good at $1,750, then it’s great at $1,700!’. This is how value buying works.’
More> Chinese gold buying will revive the price after the US elections next week reveals ‘Mr.Gold’ Jim Sinclair
