The legendary Jim Sinclair has responded to distraught gold and silver investors over today’s massive cartel take-down of gold and silver.
Sinclair states that today’s price action reeks of capitulation everywhere, and that This event has been a manufactured market move since $1800, with clearly planned and executed intervention. The gold price take downs during low volume periods internationally is a known price moving only tactic.

Sinclair reminds readers that the hardest part of enduring a bull market is to be right and sit tight, and that the cartel’s manipulation will not change the overall trend: A manufactured market event will not change the trend. Even the most professional can be reduced to sheeple by their emotions.

Sinclair’s full alert below:

 

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From Jim Sinclair:

Hi Jim,

 

How should I read the negative pressure over gold and gold stocks? What’s going to change this negative scenario?

 

Respectfully,
Arlen

 

Dear CIGA Arlen,

 

This is capitulation everywhere. This event has been a manufactured market move since $1800, with clearly planned and executed intervention. The gold price take downs during low volume periods internationally is a known price moving only tactic.

 

I simply shut off the machine because all the regular causes for the gold price will make themselves effective with time. A manufactured market event will not change the trend. Even the most professional can be reduced to sheeple by their emotions.

 

I refuse emotions and emotional people in a market context. To save yourself from all this that has happened and will continue to happen requires commitment and courage.

 

You have it or you do not. Admit who you are and act accordingly.

 

Like every mistake made by Westerners, what you see today is simply driving gold into Asian control.

 

Jim

  1. @ClintZ Normally I would tend to agree with you.  But knowing JS, he’s merely telling you “I’ve got mine, you need to get yours”.  He’s not an in-your-face guy, EXCEPT when it comes to those who think they can bullshit him or his gold/silver bugs.

    Hang in there, and today you should have been in a super buying mood….(like I was…)  

    • @Silverrrrr I agree. If I had the cash, I’d be buying now, both hands.

      Jim Sinclair isn’t bragging. He’s telling us something. It’s up to us whether we listen or not. The man is an altruist. And he has the patience of Job. Honestly, I’ve never seen so many girls’ blouses getting in a flap.

      Sheeesh.

  2. Proverbs 21:23: Whoso keepeth his mouth and his tongue keepeth his soul from troubles.
    Proverbs 11:9: An hypocrite with his mouth destroyeth his neighbour: but through knowledge shall the just be delivered.
    Ecclesiastes 10:11-13: Surely the serpent will bite without enchantment; and a babbler is no better. The words of a wise man’s mouth are gracious; but the lips of a fool will swallow up himself. The beginning of the words of his mouth is foolishness: and the end of his talk is mischievous madness.
    Sometimes, it’s better to keep one’s thoughts to oneself… especially when dealing with an elder or someone who has more knowledge, connections and life experience than you, and who is trying to help others out, fatiguing themselves by answering people’s questions.
    I would offer an apology for your mean comments ClintZ(ed)   … Zee is American, Zed is the rest of the English-speaking world hehe.

  3. “…However, the Buddha was very much alive to the fact that economic stability is essential for man’s welfare and happiness.

    In the Anguttaranikaya (A.II. (69-70) the Buddha mentions that there are four kinds of happiness derived from wealth. They are:

    1) … The happiness of ownership.

    2) … The happiness derived from wealth which is earned by means of right livelihood, i.e. not dealing in the sale of harmful weapons, not dealing in the slaughter of animals and sale of flesh, not dealing in the sale of liquor, not dealing in the sale of human beings (e.g. slavery and prostitution) and not dealing in the sale of poisons.

    3) … the happiness derived from not being in debt.

    4) … the happiness of sharing one’s wealth. This kind of happiness is an extremely important concept in Buddhism.”
     
    In the times ahead, it is the possession of gold and silver that will allow people to achieve such things.

  4. Sinclair and everyone that keeps calling for these moves and actually names a price point needs to stop.  My god, everyday someone says gold is going to 3k, 5k, 10k within hours,days, months or maybe next year.  Nobody knows  because the indicators don’t work anymore.  And here is a shocker.  The dollar went down with the metals again.  People keep harping on that stupid ass indicator so please stop that as well. The markets are rigged. Stop it with all these charts and projections.  Who gives a shit what the daily moves are.  Keep on adding to your position and enjoy the discount.  Sinclair is a legend but man he needs to give it a rest.  His credibility is going down as fast as the metals are today.

    • There are people in this world who understand that the price of something is not the same as its value. And there are people who don’t. These are the people who are panicking now.

      Sinclair is putting things in terms that they can understand. They think in fiat. He’s doing the math in his head and he’s giving it to them in fiat. It’s that simple.

      The ‘price’ of gold going to $6,000, $8,000, $10,000 or $12,000 doesn’t matter, if a can of Coke goes to $6, $8, $10 or $12.

      Some people are buying gold – and silver – because they intuitively know this.

      Others are buying it because they know that when we’re paying $12 for a Coke, many of us won’t paying our mortgages and rent. Or our car payments. Upwards pressure on the things we consume creates downward pressure on the things we buy on credit. So many people are buying precious metals hoping to cash in.

      Whatever our motives, I agree with you, we shouldn’t focus on the daily moves.  It’s just noise.

       

  5. I am with you Duck, enjoy it.
    Stack what you can, eventually you will benefit.
    I have been ‘in’ this market for only eleven months;
    realize it is manipulated, paper-based & don’t give
    a rat’s ass what the spot is day to day
    (other than buying what I perceive as dips).
     
     

  6. I still want an Expert to discuss the Eastern Country’s role in this market. Suppression may well be due to Chinese et al keeping the price low so they can stock up to launch a PM backed currency. Notice that the USD is not getting help from PMs going down like it usually does.

    • I just watching this and I really like Chris Powell.  He comes across as being level headed.  Murphy looks like he drank 10 red bulls before he came on.  He is almost jumping out of his chair but if Lauren Lyster was sitting across from me, I would be a little jumpy myself.  My god is she hot.  Really a lot of the same info but it’s was a good refresher course.  I’m glad Powell mentioned the ESF.  That is a really underrated topic to understand the metals suppression. 

    • Murphy is like a little kid around Lauren but he aint gonna get anywhere with her. Dirty Old Man. Lol
      I was also impressed with Chris Powell and this was the first time I’ve seen or heard of him, very calm and knowledgeable, I’ll need to check him out some more. Great video and content.

  7. Not sure if anyone is interested but I just read the FOMC transcript in 2003.  That was amazing amount of information of what the Fed planned in advance.  They understood what they were going to do 9 years ago about QE, operation twist, and crushing the yield curve.  They had it all in the playbook.  Here are some examples of what they said in 2003,
    High Excess as an Explicit Objective: Quantitative Easing
    * achieved with an orderly purchase of Treasury securities
    * could be paired with an objective to extend the maturity of the SOMA
    Expanding Excess Reserves
    Policies that entail an expansion of excess reserves
    - also blow up the size of the balance sheet
    - and push the funds rate to near-zero
    Compressing rates
    on those instruments
    that typically provide
    returns below the overnight
    federal funds rate.
    The Committee pledges to hold short-term rates at a low level for x period of time.
    The Committee may be concerned about its credibility.
     

    http://www.federalreserve.gov/monetarypolicy/files/FOMC20030625material.pdf

     

    • This is from 2003 FOMC meeting.

      http://www.federalreserve.gov/monetarypolicy/files/FOMC20030625meeting.pdf

      The caveats to manipulating the balance sheet are numerous. As to affecting relative returns, empirical evidence suggests that relative supplies do not matter much for risk premiums, at least within the limited range of variation in the U.S. experience.
       
      Another form of policy stimulus could possibly be put in place by expanding the Federal Reserve’s balance sheet even beyond the size required to drive the funds rate to zero.  Over-supplying reserves—some might call it quantitative easing—could affect the economy by lowering the returns on the assets purchased to supply those extra reserves, by convincing market participants that the overnight interest rate will be kept low in the future, and by working though a quantitative channel, if it exists.

    • The Committee could also instruct the Desk to purchase a wider set of assets in open market operations, potentially including foreign exchange to foster currency depreciation. If the menu of permissible assets is viewed as too short to provide sufficient stimulus, we could seek legislation to expand that authority—presumably to include corporate debt and even equities. There is another weapon in the Board’s arsenal: It could cut reserve requirements. True, the available base is narrow (transactions deposits) and the amount limited by law (at most from the current 10 percent to the 8 percent floor), but such an action would signal a willingness of the Federal Reserve to use all means at its disposal to revive the
      economy. Finally, the Federal Reserve could coordinate its policy with the Administration and the Congress to encourage, say, tax cuts that would be directly financed by money creation. You can see why I put this list last. These options would change how we are viewed in financial markets, involve credit judgments of a form we are not used to, perhaps smack of desperation, and pull us into a tighter relationship with other parts of the government. But they are available if you felt the other, more traditional forms of monetary stimulus would be inadequate to the situation.
       
      That is a amazing paragraph by the FOMC back in 2003.  They talked about cutting reserve requirements, killing the dollar by money creation to benefit it’s foreign exchange accounts.  It’s one thing to know what they are doing but it’s totally another thing to have the Fed admit what they are doing. 

    • @crissyl @MaryB We all seem to be in agreement on JS. I sometimes wonder what makes female investors different. Perhaps it’s because there’s no such word as investoress. LOL! Or maybe it’s the lower level of testosterone. I’ve got my whole net worth in the PMs, and I’m not in the least bit scared by this latest price action. I’m not angry at the setback nor rejoicing at the discount. I’m just watching and waiting patiently.

      There is one small point on which I would beg to differ with Sinclair. He states that he ‘refuses emotions and emotional people’. If I wasn’t investing with my emotions, I wouldn’t be doing it at all. When I bought my first tranche of gold, I was shaking like a leaf. Terrified. Nauseous. But it was the feeling in my gut that told me I was doing the right thing. Self preservation was kicking in. Since then, with every purchase, I have felt calmer and more in control of my life. Now I’m all in and it’s time to wait. And help others.

    • Tawnyard, I agree that gold has an emotional quality in it. I bought my first gold coin in the late 70′s, it was a SA Krugerrand. When I held it in my hand it seemed to have some power that emanated from it that is hard to describe. I sold it later when the price of gold skyrocketed, I also sold my class ring and made a killing. Later the Krugerrand was boycotted due to the apartheid situation in SA and was glad I did. I still had my silver and held on to it ever since adding to it when I could. I never became that interested in gold after that experience. I later bought three 1/20 ounce Panda’s and recently found out that they are worth about $500 each because of the rarity of the dates and the type of lettering used for the dates…what I could do with a time machine.

  8. Point and figure break down in gold today, with $1560 target.    Its going to $1300.     Apple stock is going to 320 or so.

    Silver will be taken down to $22-$25

    I am very long physical also,  it will not be fun.   I hate to break it to you guys,  but its time to get real.

    • I don’t think you have any more insight into the situation than most have on this site. When someone seems so sure of themselves my BS detector goes off big time. What makes you so confident that you are more aware and knowledgeable? If you want to get real why don’t you just admit that you have no more idea of what is going to happen than the next person? If your ‘prediction’ comes true it mean nothing, even a broken clock is right two times a day. Maybe your name should be Swami ClintZ, you see all, you know all, you tell all.

    • I could be wrong of course. My latest indicator is the Tim Geitner “hair indicator”.

      If you notice whenever that man speak you can see his hair growing just like Pinnochio nose. He needs haircut immediately after public speaking. I think that is odd and it must be an omen.

      Not sure man sitting behind stack of golden ash trays is any better though.

      2013 is Year of the Snake

  9. Gotta quit thinking in paper ClintZ and get back to the Phyzz. When silver gets to $22.00 let me know and I’ll be happy to purchase all the phyzz silver you have. LOL.

    I ditto Marchas45′s comment!

     

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