-- Posted Tuesday, 22 January 2013 | | Disqus

Readers of this website may recall the wise words of gold market veteran Jim Sinclair late last year warning that the bullion banks were pulling the gold price down but only to reposition their own holdings ready for the next spike up (click here).

Goldman Sachs warned its clients that the bull market in gold ‘might be over’ at the time. This week the same bank is pressing its clients to buy gold again because it sees a pop in the gold price to at least $1,825 this year before another set back.

Silver too?

The last time gold hit this level the silver price took a tilt at taking out its 1980-high of $50. It could be the same story this year.

That’s what we love about gurus like Jim Sinclair. He speaks from long experience and considerable trading profits in a long career. Mr. Sinclair advised the Hunt Brothers in the late 1970s when they cornered the silver market and pushed prices over $50 an ounce, a level that has never been matched since then.

When he saw the gold price under attack at the end of last year he immediately spotted a rat in the shape of the bullion banks. They wanted to use an accelerated year-end sell down in bullion to reposition themselves ready for the next leg up in prices, and so it has come to pass.

Hazards ahead

Life for traders is never entirely without problems, however. Over-inflated global financial markets could still correct suddenly and derail the next advance in gold and silver prices.

For long-term gold bugs like Jim Sinclair – and he’s ridden this bull market right from the start with some stunningly accurate calls – this is just a matter of riding the waves of an upward trend. New market entrants are not as sanguine when their investment suddenly drops in value.

Buying on the dips like at the end of last year is the way to do it but few have the confidence even when Mr. Sinclair spells it out for them. That of course is why he became a rich and successful investor while most people never will!

-- Posted Tuesday, 22 January 2013 | 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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