sinclairLegendary gold trader Jim Sinclair sent an email alert to subscribers tonight, advising gold investors: As Gold and Gold shares rise from the lows, do not sell.  As the bottom of this reaction of the gold price sets in cement, please do not supply the shorts covering with your gold and good gold shares.

Sinclair states that Gresham’s Law is propelling gold back into an accepted monetary form, as the BRIC central banks attempt to accumulate 15% reserve balance in gold
The economic axiom known as Gresham’s Law is operating in the Central Banks of the BRICs whereby gold is being accumulated with a goal of 15% of the reserve balance. The goal of 15% of reserves are the currency gold, and gold’s ascent in the marketplace due to the effect of Gresham’s Law to an accepted monetary form.

Sinclair urges precious metals investors to sit tight and hold onto their gold through the coming volatility as gold breaks through $3,500 and $4,00 and heads to $4,990/oz.

Sinclair’s full alert is below:

dollar hyperinflationAs looming inflation, currency wars and a possible run on gold threaten to derail markets, Leonard Melman, author of The Melman Report, is setting his sights on the midtier and near-term producers that he wants to scoop up when the blood is in the streets.
In this interview with The Gold Report, Melman explains why gold, silver and the companies bringing them out of the ground could do very well in the second half of 2013.

Central banks are among the shrewd investors who buy gold bullion on dips.  When gold was weak during May to July of 2012, central banks actively bought nearly 71 tonnes.

Russia and Kazakhstan’s bought 12.2 and 1.5 tonnes in January, but until the IMF reports official activity, may help the very poor sentiment towards gold today. Central banks utilize gold bullion to diversify their holdings and limit their foreign exchange exposure.
It was reported that South Korea bought 20 tonnes of gold last month rumoured to be below the $1,600/oz mark. This is the first purchase this year for South Korea, after they purchased 30 tonnes in 2012.  Previously they purchased in July 2012 at the same price levels.

rand paulThe US Senate is currently in session to vote on the nomination of John Brennan for CIA Director.
As promised, Rand Paul is currently filibustering the nomination over the Obama Administration proceeding to authorize the use of aerial drones to murder uncharged US citizens on US soil.  Paul began his filibuster at 11:47am.

Paul: We’re engaged in an epic struggle with the President against the Constitution!

*Update 5: After nearly 13 hours of filibuster, Paul yields the floor at 12:39am EST.
Rand Paul trending #1 on Twitter
Is this the turning point for America?

 

Watch Rand Paul’s HISTORIC filibuster LIVE!

ObamaIn a letter dated March 4th 2013 written to Senator Rand Paul, Attorney General Eric Holder officially confirmed that the Obama administration will murder uncharged US citizens within the US via aerial drone strike if necessary to protect the homeland.

The USA is now officially the USSA.

Holder’s official full letter to Senator Paul is below:

ChinagoldsearchIn today’s modern world, there may not be a better gauge for overall public sentiment than Google search engine results.
With gold and silver nearing 2 years of bull market correction, gold and silver search terms and traffic in the US are roughly 40% of the levels seen in 2011.
In China however, google search trends for gold  are a completely different story

srike outSubmitted by Stewart Thomson:

Every baseball player knows the saying, “3 strikes and you’re out!”  Well, the dollar bugs may be about to strike out, against silver bullion.   In the previous 2 corrections, silver made a “capitulation low”, and that was followed by a final lower low, which looks like a spike.

The same set-up is in play now.  Of additional interest, is the fact that the silver market now shows three corrective phases, since topping in October.   It’s quite possible that the next rally will be of “intermediate trend quality”, rather than just a minor uptrend that ends quickly.
If I had to buy just one metal now, I would choose silver, but all investors should own more gold than silver, in a super-crisis.   

tugofwarOutflows from the world’s biggest gold exchange traded fund, the SPDR Gold Trust (ticker: GLD), continued yesterday for the eleventh day running, taking the total volume of gold held to back GLD shares to its lowest level since November 2011.
“It is really a tug of war between ETF selling and physical buying right now,” says Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank.   “We have seen quite good physical demand from China and Southeast Asia, but the ETF selling has put a lid on gold prices.”

Currency debasement is being seen internationally and will again benefit gold in the medium and long term. The second round of money printing by the Federal Reserve pushed spot gold prices to a record nominal high of $1,920.94/oz in September 2011.  Given continuing debasement new record nominal gold highs and indeed inflation adjusted gold highs over $2,400/oz will almost certainly be seen in the coming months.

imagesGold has lost its shine in early 2013 as speculators build up massive short positions on the futures market.

Indeed, gold short positions on the New York Comex are at levels not seen before this century. The last time speculators were betting against gold this heavily was back when the New York Times was hailing the genius of Alan Greenspan at the Federal Reserve, while Gordon Brown was preparing to sell half of Britain’s gold reserve at what proved to be the bottom of the market.

Speculative investors have certainly turned on gold. But this is not the first time gold has been written off. In this excellent video, Adrian Ash looks back to the 1970s, and a period when the gold price was cut in half, just as US citizens were allowed to own gold again for the first time in four decades.   In fact, gold performed so badly that Time magazine compared gold bullion to a rusty tin can…before bouncing back spectacularly

Bernanke-Dimon-Fed-TunnelSaturday, ZH broke the story that JPMorgan’s secret Manhattan gold vault (the largest vault in the world) was directly across the street, and connected via underground tunnels to the NY Fed, which supposedly houses over 25% of the world’s central bank gold reserves.

Today via our friend Pining from TFMetals, we offer readers a rare glimpse inside the secret (until now) tunnel between the NYFed & JPM’s gold vaults.