Gold Legend Says 'The End Is Not Near, It Is Here and Now'

By: GoldCore

Today's AM fix was USD 1,576.00, EUR 1,264.34, and GBP 1,021.72 per ounce.
Yesterday’s AM fix was USD 1,620.75, EUR 1,288.66, and GBP 1,046.25 per ounce.

Silver is trading at $28.40/oz, €22.87/oz and £18.47/oz. Platinum is trading at $1,428.50/oz, palladium at $612.40/oz and rhodium at $1,200/oz.

Gold fell $28 or 1.73% yesterday in New York and closed at $1,591.60/oz. Gold traded sideways prior to another 1% fall in Asia but has recovered somewhat in early European trading and has made gains in euros and Swiss francs particularly.

Cross Currency Table – (Bloomberg)

Gold’s sell off was attributed to Fed Chairman Ben Bernanke not hinting at further quantitative easing. Leveraged speculators sold gold & silver aggressively after Bernanke failed to communicate aggressive use of helicopters to dump money on the citizenry of the US and further debase the dollar.

When prices hit around $1,600/oz, Comex gold stop losses kicked in and exacerbated the selloff.

Bernanke’s testimony also led to US equities falling at the close and weakness has continued in Asian and European indices.

Although Bernanke didn’t offer hints in the near term, he said that “the central bank was ready to shield the economy if financial troubles mounted,” which suggests that the kneejerk speculative sellers will be buying back sooner rather than later.

QE3 is assured as are further versions of QE - although they will no doubt be given a new dissembling name and acronym and remarketed as something other than mass currency debasement.

The People’s Bank of China cut their interest rate due to concerns of a property crash and because of their slowing economy. Gold rose on the news prior to prices being capped.

German exports and imports have dropped sharply in April - the latest sign that Europe's largest economy is beginning to feel the chill from the euro zone debt crisis.

Europe’s debt crisis is creating economic contagion and may be spreading to the already fragile Chinese and American shores.

‘The End Is Not Near, It Is Here and Now’ – Gold Legend Sinclair
Veteran and respected gold and silver trader and a former adviser to the Hunt Brothers in the silver market in 1980, Jim Sinclair is now warning on his website,http://www.jsmineset.com/ that ‘The end is not near, it is here and now’ in reference to the global financial system.

He is also reiterating his long held view that there will be “QE to infinity” despite the denials of Bernanke and other central bankers.

Currency Ranked Returns – (Bloomberg)

Sinclair believes that gold and silver will surge in value very soon and much sooner than most are currently forecasting.

Mr Sinclair disagrees with George Soros , who accumulated gold aggressively in Q1 2012, who recently said that the euro has three months to sort itself out. He thinks the euro, in its current form, will be lucky to survive three weeks.

He believes that after a couple of years of crises in the euro zone, market commentators and investors may have become desensitised to bad news and are in danger of missing the real denouement when it is actually about to happen.

The Greek election on June 17 is only 11 days away and is an obvious flash point ahead. Meeting after meeting of European leaders does not seem to be getting anywhere.

Nobody really seems to have a handle on the situation and a realisation that this is a global debt crisis and not a regional “euro debt crisis”.

Only massive debt write downs and debt forgiveness and a form of global debt jubilee can prevent a collapse of the financial system and a deep global depression.

XAU/EUR, XAU/USD, XAU/GBP & XAU/CHF Daily – (Bloomberg)

Mr. Sinclair has a good track record. He predicted back in the early 2000’s with gold below $300 an ounce that gold would reach $1,650 within a decade. Now he is talking about “quantitative easing to the moon” and a similar trajectory for gold and silver prices

For the latest news and commentary on financial markets and gold please follow us on Twitter.

GOLDNOMICS - CASH OR GOLD BULLION?

'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.