"Gold guru" Sinclair's clairvoyance on gold prices is said to be legendary. Really? Anyway, it may be awhile yet before others become as sanguine. Let's hope the bulls start breaking down the front doors and let us in right away!
This song by the Sensations broke down those doors in the 1960s unshackling silver & gold prices and will do so again sending silver parabolic.
Posted on 02 April 2013
It is pretty rare to see the monetary base expanding in one direction and the price of gold going the other way as the chart below from George Topping, a gold mining analyst from Stifel Nicolaus demonstrates.
Agora Financial expert Dan Amoss comments: ‘Central banks have trapped themselves into cycles of ever-easier policies – policies that may be reversible in theory, but not in practice. More investors will think through the implications of going down the path of permanent printing and position themselves accordingly.
‘As time passes, gold and other precious metals will look attractive to a broader audience. Since the Fed announced its latest flurry of easing last fall, gold has acted like a beach ball held underwater. It’s bound to snap back as the base money supply continues growing rapidly.’
On the chart above the third shaded area is the latest round of QE. Says Mr. Amoss: ‘The monetary base is rising as fast as ever, yet gold prices have fallen. This phenomenon is unlikely to last.
‘The monetary base will keep growing, which boosts the value of gold versus paper. It’s only a matter of time before the market recognizes that there will be no exit from QE and there will be no shrinkage of the monetary base. When that happens, gold (and silver) will break out of their long consolidations, making up for lost time.’
Jim Sinclair’s latest theory
ArabianMoney has also been reading the latest KWN interview with gold guru Jim Sinclair. He is now saying that by the middle of this month the true scandal about what happened in Cyprus will be out and that this news will scare global investors into holding gold.
Watch this space but Mr. Sinclair has an excellent record on such diagnostics. Remember that after bank collapses all sorts of nasties general come out in the washing up afterwards. Major bankruptcies and suicides among involved parties are also common.
Could there be something in this to revive the flagging fortunes of gold and silver investors?
It’s pretty much a slam dunk, particularly against the background of the surging monetary base that has yet to be reflected in the price of gold and silver.
ArabianMoney
This song by the Sensations broke down those doors in the 1960s unshackling silver & gold prices and will do so again sending silver parabolic.
Posted on 02 April 2013
It is pretty rare to see the monetary base expanding in one direction and the price of gold going the other way as the chart below from George Topping, a gold mining analyst from Stifel Nicolaus demonstrates.Agora Financial expert Dan Amoss comments: ‘Central banks have trapped themselves into cycles of ever-easier policies – policies that may be reversible in theory, but not in practice. More investors will think through the implications of going down the path of permanent printing and position themselves accordingly.
‘As time passes, gold and other precious metals will look attractive to a broader audience. Since the Fed announced its latest flurry of easing last fall, gold has acted like a beach ball held underwater. It’s bound to snap back as the base money supply continues growing rapidly.’
On the chart above the third shaded area is the latest round of QE. Says Mr. Amoss: ‘The monetary base is rising as fast as ever, yet gold prices have fallen. This phenomenon is unlikely to last.
‘The monetary base will keep growing, which boosts the value of gold versus paper. It’s only a matter of time before the market recognizes that there will be no exit from QE and there will be no shrinkage of the monetary base. When that happens, gold (and silver) will break out of their long consolidations, making up for lost time.’
Jim Sinclair’s latest theory
ArabianMoney has also been reading the latest KWN interview with gold guru Jim Sinclair. He is now saying that by the middle of this month the true scandal about what happened in Cyprus will be out and that this news will scare global investors into holding gold.
Watch this space but Mr. Sinclair has an excellent record on such diagnostics. Remember that after bank collapses all sorts of nasties general come out in the washing up afterwards. Major bankruptcies and suicides among involved parties are also common.
Could there be something in this to revive the flagging fortunes of gold and silver investors?
It’s pretty much a slam dunk, particularly against the background of the surging monetary base that has yet to be reflected in the price of gold and silver.
ArabianMoney
