-- Posted Thursday, 27 December 2012 | | Disqus

The recent falls in the gold price are absolutely nothing to worry about for long-term investors who have a gold price target way off the present scale, and this is a repeat of the take down in gold that happened in the late 1970s just before the big price take-off, says the 70’s gold king who made it all happen then.

Jim Sinclair offers a unique perspective on gold from the position of an old-timer who made a fortune from great timing. Past success does not guarantee future success but choosing your market guides on this basis is surely better than not doing so.

Mr. Gold

‘I have seen this type of take down before,’ says Mr. Sinclair in his latest missive.’It was just prior to the major move in gold in the 70s wherein gold rose the most over the shortest period of time.

‘The operation of gold’s price is not for a short to profits as its market character speaks of deep pockets only governments can have. I suspect that battle for the survival of the euro might soon be reversed into the battle for dollar survival.

‘Euroland, Russia and Asia from central banks to connected financial entities have been buyers of gold. The tables have shifted. The signs of the new triumvirate being on the offensive sits right in front of us.

‘This is the transition that I believe is at hand. This operation is from some mega interest not seeking to profit on a short, but to obtain the most gold possible for this market event which will play into 2015 to 2017.’

Big macro picture

Take the longer view and do not concentrate on short-term price volatility. People said gold was a spent force as it battled to get above $1,000 and fell back three times. Look where it sits only three years later, and that after the current price take down.

You are playing a big macro economic game with gold, not making a trading investment. Silver is the same only saddle up for an even bumpier ride to even higher performance. The US dollar is going to be the next casualty in the global currency game, according to Mr. Sinclair…

‘The first signs are definitively in that the long war conducted by the US and GB against the euro has been lost. The euro is in a new birthing process, against all odds, as rising into the category of reserve demand. Euroland and all the BRICs have been buyers of gold for reasons not motivated by emotion, but based on events yet to occur.’

Gold of course is the ultimate insurance policy against a failing US dollar.

-- Posted Thursday, 27 December 2012 | Digg This Article

About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in 1999 to complete his first book, a history of the Bovis construction group.

Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in www.ameinfo.com, which later became the Middle East's leading English language business news website.

Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time www.ameinfo.com prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.

He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog www.arabianmoney.net is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.

Order my book online from this link

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