gold and sinclair

  1. 762 Posts.
    For those that need cheering up ... here is Sinclair's web site

    Here is an extract ..

    June 24, 2003

    US Dollar Rally: Fact or Fiction?

    If you think the US Dollar is going to rally BIG, I've got a bridge to sell you in Manhattan cheap and for cash. Here are a few points to ponder about the dollar and its future:

    1/ What do you think the cost of a five year occupation of Iraq is going to be?
    2/ How about the standard Arab strategy of all fall down and run away when the invader comes, then slowly stand up, dig up your weapon and report for duty?
    3/ Looks like a guerilla war developing in both Afghanistan and Iraq to me. Is this another Vietnam starting?
    4/ How do you like the "peace" in Palestine?
    5/ Forget the Spin City talk about taxes on retirement funds balancing a 44 trillion dollar deficit. Those taxes will simply be continuing income tax on serialized retirement earnings.
    6/ Do you really believe the US public will remain behind the Afghanistan/Iraq military action as the number of US dead climbs?
    7/ With all the noise about what the Fed will do tomorrow, do you really believe it matters?
    8/ Do you really believe that the earnings of US corporations are on the verge of breaking out to the upside?
    9/ Have you seen the total turnaround in the US balance of trade and payments as a result of the lower value of the US dollar? I have not.
    10/ Have you seen the sudden reversal of the US Current Account deficit? I have not.

    So once again, all the specs are running here and there and if you let them spook you you're going to get chopped up. Not me. I explained the "WHY" to you yesterday about the Euro rally. It was too many speculators in the same item all at the same side. That always creates a traffic jam at the exit as many wish to take their profits at the same time.

    It is started by one, then two, then everyone. However, soon a major buyer will show up and the lemmings will all rush in the other direction. That is called a market. It has nothing to do with anything but the madness and delusions of the crowd.

    To sell off gold is natural but the degree is now getting overdone on the downside IMO. I purchased today at $352.40 and at $347.10. I don't want to stand the hair up on the back of your neck, but my next bid is at $334.10 which is slightly above the Fibonacci support if $346.16 Fibonacci fails to hold.

    I hate to say it but the lower I buy the more I will make IMO. Gold has worked that way so far so why should it change now. Don't say we are on the threshold of a huge bull market in the US dollar because that is simply nuts.

    As long as the jolly foursome on the Comex keep pounding away, I will pick my spots and do my thing. I am not in the least bit concerned about gold's price - only the emotions of the Gold Community.

    When I said earlier this morning that your mantra should be: "You never ever pay up for anything gold or silver," I meant that this is the time you make your commitments. You buy weakness and sell into strength.

    If you can't this time around then please remember to sell strength next time around. Gold is going over $400 and the US dollar will be totally in the dumper. If you weaken, just repeat the following over and over: Gold is going to $408 - gold is going to $408. In time it will hit that and more.
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