Saturday, July 3, 2010

One Last Observation On Thursday's Price Ambush

Gold is in a long term bull market.  As such, all sell-offs, price pullbacks, secular price corrections and overt, illegal manipulative price attacks, like Thursday's, are to be bought - aggressively.  Feel free to take profits on part of your positions on big price rallies only if you have mining shares or paper surrogates (GLD, CEF, GTU, PHYS, etc).  Never, I mean NEVER, sell your physical gold/silver holdings until this long term bull has run its course.

On average, bull market cycles last 18-20 years.  We are only 9 years into the precious metals bull market cycle.  Historically, the most spectacular price gains occur in the latter stages of a bull cycle (think:  stocks, 1981 - 2001;  housing 1991 - 2007). 

Those of you/us who are willing to spend the time learning about, researching, investing in and trading the precious metals market will know what to look for when it is time to sell.  Until then, as per Jim Sinclair's perfect advice:  "never trade your core 2/3's position, always buy 'fishing line' sell-offs (like Thursday's) and take profits on 'rhino horn' price rallies."

Have a great holiday weekend.


  1. When the bull market in gold and silver is near its end, do you think we'll see the mania towards gold and silver that we saw with houses? Bullish as I am on PMs, I'm having a hard time visualizing the Reality TV crowd getting on board. In fact, when gold first hit $900, there was a picture in the local paper of people lined up outside a gold store to sell their gold.

  2. Yes. Definitively. As per Jim Dinas circa 2001: because the mining stock and precious metals market is very small, it won't take a lot of capital moving into the sector to push everything up to unimagineable price levels. Pension funds have no exposure to the sector. Imagine what will happen when they move just 5% into the sector. And then the public eventually will want it.

    Dines, myself and many others firmly believe that the mania stage of this bull market will be one for the record books.

    This biggest problem faced by those in it now is haveing the knowledge, underdstanding and mettle to not get bucked off this bull. The goal of the insider bullion banks is to buck as many people off as possible before the real upside begins.

  3. I have always thought that the first stage of the crisis will be a Middle East War because:

    1. It allows repudiation of all the COMEX and LBMA contracts through force majeure and martial law. Also it is easily explainable to the sheep who will agree to it.

    2. Martial law also allows the cancellation of the OTC contracts and the introduction of gold sequestration and war frenzy to allow the over riding of normal commercial events.

    It won't be until the second or third stage depending on who you read that mania caused by hyper inflation will cause the mass of the public to be involved. This stage of course will be cheer led by our professional bullion banks like JPS and GS who will get let off the first stage by the martial law. jim Sinclair always says that the bullion banks will end up making more money out of this bull than anyone else and I am sure he is right.

  4. I think your scenario has a good probability of occurring. The reason Sinclair believes that is because it is very likely that JPM, HSBC et al actually have accumulated a lot of the bullion that has been unloaded by the various Central Banks, including our Fed.

    What better way to pull of a huge heist than to do it right in front of everyone and keep the price as low as possible while you're doing it.

    "The greatest trick the Devil ever pulled was convincing the world he didn't exist." (Usual Suspects)

    Thanks for the link

  5. Just in case you have any doubts about why BP is not paying out in the Gulf you should have a look at the moral fibre of the hand picked people running this Rothschild company.