Rosen – Goldman Sachs Call Ridiculous, Gold Ready To Rocket
“In spite of all of the negative press gold is receiving today on CNBC because of Goldman Sachs’ call for the end of the gold bull market, everything is right on schedule. The timing of this ridiculous proclamation by Goldman Sachs could not have come at a more perfect time.
My projections are for a massive move to the upside in gold for 2013 and 2014. The Goldman Sachs call will be an interesting footnote after the explosion takes place. What the analyst is saying is contrary to all natural movements through time. If you look at the patterns in the charts below you will know where gold is headed.
There were no gold share indexes in the last gold share bull market in the 1970s. However, Homestake Mines was the gold share that always led the parade. It was considered a leading indicator for the direction of the precious metal shares….
“If you are concerned about the HUI not performing, don’t be. The HUI is doing exactly what it should be doing by repeating this pattern from the past. The following charts show us what to expect in 2013 for the precious metal shares.”
Today John Embry told King World News, “We are literally witnessing a war between the physical buyers (Eastern central banks), and the paper manipulators (commercials or bullion banks), and that is why there is such a fierce battle being waged in gold between $1,735 and $1,800.” Embry also stated, “If the commercials run into trouble (with their massive short positions), KWN readers will see a move in gold that will leave them breathless.”
Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say: “This is one of those moments in the gold market where there is a distinct possibility that we will see a commercial signal failure. A commercial signal failure is an extremely rare event, but we could well be setting up for just such an occurrence right now.”
“The commercials are massively short gold at the moment, and each time they try attempt to drive the price of gold lower, there is a solid wall of physical buying they are running into. I just don’t think they anticipated this. Meanwhile, the Eastern buyers, such as China, are delighted the commercials keep trying to push gold lower.
But now we are getting to the point where there is a distinct possibility that the bullion banks may run into some serious trouble with their enormous short positions….
“If the commercials run into trouble (with their massive short positions), KWN readers will see a move in gold that will leave them breathless. But you have to remember that this is a rare event, and it hasn’t happened yet...
Here's a bullish call on gold.
Citi technical analyst Tom Fitzpatrick spoke with King World News today:
Citi technical analyst Tom Fitzpatrick spoke with King World News today:
...We’ve done that again here, and the present pattern we look at is setup similarly to that of 2006. In 2006 we had a similar type of consolidation and sideways moving pattern, which eventually gave way to a significant push to the topside. We believe the same thing is happening again here.
We’ve already iterated a target in the more medium to long-term of $3,400, and over the next twelve months as high as $2,400. We believe gold is now setup, with a bullish weekly reversal last week, to make its next move higher.
SD Contributor SRSrocco:
The sharp lesson for nations in Asia is that their own trade security is best served by having an alternative settlement medium to the dollar and other Western currencies. This function historically belongs to gold, but that is a last resort for central banks, and besides, many Asian central banks are gold-poor. This plays into China’s hands.
China is increasingly keen to provide her own currency for trade settlement purposes. She sees the dollar-monopoly as an important security threat, which is why she has in the past sought alternatives. She is now cautiously promoting her own currency for this role and is developing an offshore renminbi capital market in Hong Kong. At the same time she is evolving from manufacturing consumer goods towards capital goods, for which Hong Kong is the natural financing centre.
Her targeted growth-markets are other rapidly developing economies, as well as the whole Asian continent, and no longer the US and Europe. One of her key strategies through the Shanghai Cooperation Organisation is to build a pan-Asian security and trade bloc in partnership with Russia, and the last element of this 10-year old plan is to settle cross-border trade without using the West’s financial system. China expects to play a major part with her currency, which explains why she is adding to her gold reserves. The relevance of gold is that China will have to show to the people of Asia that her currency has better long-term prospects than the dollar, which goes some way to explaining why so many of the countries associated with the SCO are now also accumulating the metal. This analysis is confirmed by a leaked cable from the US Embassy in Beijing as long ago as April 2009 that can be seen in GATA’s database. As Iran and India also have SCO Observer status they are part of China’s grand strategy, and they have also been buying gold.
Gold Will Bounce Back Next Week - Goldco Staff WriterMarch 23, 2012
Written By Jeremy Holcombe Gold had its share of price drops this week, but most investors and collectors do think that gold is going to bounce back nicely next week. This is all a part of the gold game, as price drops and price spikes within a short amount of time are nothing new to the world of buying and selling the yellow metal.
As I have written many times before, gold is simply a very popular precious metal and these kinds of drastic price changes will happen time and time again. The trick is to hang tough and be able to hold onto what you have -- or even bargain buy more, and then watch your returns start to multiply.
A recent survey put out buy a big company revealed that most traders and analysts said they expect a bounce back in the price of gold since they view gold as oversold technically in the short term and likely to have found some support at this week’s 10-week low. After starting off a torrid pace for the first two months of 2012, gold has really taken a step back while it looks for its footing to make a run at the predicted $2,000 per ounce price range.
With many global investors concerned about the recent action in the silver market, King World News interviewed the “London Trader” to get his take on what has taken place in silver and what to look for going forward. Here is what the source had to say: “The Chinese are divesting out of paper right now. So we are seeing a huge uptick in euro physical silver purchases, as well as dollar silver purchases. When silver took out $33, a huge amount of physical orders were filled.”
The London Trader continues:
“The Chinese are doing the exact same thing in the silver market that they are doing in the gold market, massive accumulation on dips. It is also important to note that the local traders in silver are short and nervous. Everyone is short silver and so that market can move violently higher when it turns.
When silver reverses, it will be the one that leads the market higher. Also, the commercials have been covering in silver the same way they have been in gold....
Today legendary trader and investor Jim Sinclair told King World News that the Fed has gone too far and risks losing credibility. Sinclair also said the central banks are doing what they can to prevent gold from reaching a level where it begins to go parabolic. Here is what Sinclair had to say about what central planners are up to and what to expect going forward: “Well it’s amazing that we’ve developed such visionaries in the Fed that they know exactly when to step on the accelerator and exactly when to step on the brake. Then, could they please explain how we got to the point where we need that?”
Jim Sinclair continues:
“The other side is, maybe what we are really going to do is a Harley Davidson burnout where nobody can see anything but a cloud of smoke. I think the Fed has gone too far when they speak to people who do understand enough about what makes these things happen, to know this is just, bottom line, fabrication.
I think they (the Fed) have weakened their position by what they are doing....
The Pan Asia Gold Exchange (PAGE) – was to represent real price discovery and that is yet to happen. The first move to smother the exchange was by an increase of holdings in the endeavor. This move was to stop them from constructing their own platform rather than buying an existing platform. Due to that move shareholders rose from 10% to 25%. That brought in additional directors whose job it obviously was to stop the fully allocated spot contract. One of these directors was a US banker who has worked for the Federal Trade Commission, the Sloan Foundation at MIT and whose wife is a member of the CFR, the Council on Foreign Relations. Thus, nothing is going to happen to this venture until next year for a variety of reasons. Fortunately a new exchange is on the way to replace PAGE, which we will fill you in on in a few months. Once underway it will first trade silver. The Chinese regional exchange recently phased out of gold trading and is setting up to trade silver in the domestic currency – the RMB. Accounting will take place monthly and will be held in private facilities, not with bullion banks. That way they cannot illegally hypothecate the silver. No 350 to 1 leverage. Only trading for cash delivery. In the final analysis this new vehicle will be out of the hands of the Elitists – it will function far better and draw major international players.
If you are looking for a reason for the attack on silver this past week just look at the gold cartel’s net short position, that rose from 160,000 contracts on 12/31/11 to 229,000 just a week ago. The total net silver short rose from 14,000 to 39,000 an increase of 178% as silver rose 30%.
Silver was on its way to break $40.00 and gold $1,800.00, and something had to be done or the criminals were about to lose control and a lot of money.
The Dow Jones industrial average ( ) dropped 480 points, or 4.2%, after falling as much as 528 points. The S&P 500 ( ) was down 54 points, or 4.5%; and the Nasdaq Composite ( ) lost 126 points, or 5%.
Fortune 500) shares plunging 8%. Only three members of the S&P 500 were trading higher.
Investors had bad news hitting them from multiple fronts, including a dismal forecast from Morgan Stanley for global economic growth, and several economic reports that showed significant slowdown in the U.S. economy.
A gloomy report from Morgan Stanley renewed fears over a slowing global economic recovery. The investment bank slashed its global growth outlook for 2011 and 2012, adding that the United States and Europe are "hovering dangerously close to a recession."
Morgan Stanley cut GDP forecasts to 3.9% in 2011 and 3.8% in 2012, down from 4.2% and 4.5%, respectively. Growth will be particularly sluggish in developed nations, with GDP averaging an increase of 1.5%
"You could see $3-5,000 to clear the market as the central banks and bullion banks run out of gold to meet the growing demand," Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA), which is hosting a conference in London this week, told CNBC Thursday.
"Six years ago when gold was at $436 we predicted that this would happen."
Murphy, and GATA, believe that the gold market has been manipulated by bullion banks and central banks like the Federal Reserve and the Bank of England, as well as the International Monetary Fund (IMF).
Not everyone agrees with their theory.
"The notion that central banks are really in control of any asset price, including gold, is probably not really very well founded," Jens Larsen, chief European economist at RBC Capital Markets, who used to work at both the Bank of England and the IMF, told CNBC Thursday.
"The gold price is one of the hardest asset prices to get a handle on," said Larsen.