Jim Draws The Line And Challenges All Sides: I Am Right On The Price Of Gold Or I Am History!
I am always amazed at the offspring produced by an investment world that has become a totally technical world. That offspring is called the “No Experience Instant Expert.”
These are the same people on gold chat groups that called me a raving nit-wit for suggesting at $426 to $433 that gold would not continue up and take out the $430.30 closing high as these no experience instant experts were ragingly bullish. Now these same experts are manically depressed gold bears yelling "double top." There is no double top and gold will prove that. However, try a Box Formation in gold because that is what will appear quite soon.
The same commentators recently said that I would support marriages between Komodo Dragons because it would mean increased sales of gold wedding rings, referring to my fundamental review as proof that gold is far from its high in this phase of the gold market. Yes, I am the only rational advocate of gold that puts primary reliance on sound fundamentals to present its case to the international investment crowd while being respectful of markets.
This is a war! Can't you realize that? Disinformation is a tool of war and that disinformation comes from general equity analysts who believe that if they can break gold shares they improve the lot of general equity shares and the COT-employed commentators. You need me in gold to constantly expose nonsense wherever I see it.
Gone is the Jim Blanchard of hard money. Gone are gold conferences that select speakers by content and delivery not the size of their mailing list or wallets. Gone too is fiery leadership of the fearsome foursome of the 70s: Harry, Jim Dines, Jim Blanchard and Jim Sinclair.
Harry is my dear friend who has my deepest and most profound respect yet I publicly implore him to come back into the fight recognizing that “Gold is Honest Money” if he believes it. I implore Harry to focus his short term trading genius on the ilk of SIRI, IBM and GE that can absorb the huge flows of capital that follow Harry and not be destroyed in the process. Keep your medium and long term technical genius on the gold shares as that will not harm them irreversibly as too much money trying to trade too short term may have already. Gold shares simply cannot play mega musical chairs among the same few traders without imploding because of the activity of too few with too much money picking too few pockets.
Gold is NOW a leaderless field with few apologists that any sane person will listen too. Gold is a field with too many conferences of pure promotion and raving madmen. The NY Gold conference, in my opinion, proved to be a meeting place for wild silver people who in their unguided and undisciplined enthusiasm ended up blowing silver up literally.
As a group, they could have qualified as silver terrorists by ruining the silver game with that nonsense rumor relating to Ian McAvity’s fund position in silver (correct) but spinning it into a pure BS rumor concerning a phony story about futures both dated and undated demand for delivery that could not be satisfied. Those silver promotion proponents nearly killed silver in the process.
How many silver bullish dead bodies are floating in that pit? Now they are loudly blaming the bust they set the stage for on short side manipulations of COT. Certainly the short side took advantage of it but the silver bullish spinners overdid their promotion and that set the stage for a percentage bust that will go down in history as the way silver bulls can go broke in a silver bull market.
Now simply refer to history and examine what higher interest rates at the point of the rebirth of inflation did to the price of gold. It means a much higher gold price.
Take a look at the simple horizontal resistance in the CRB from the high 1980 - 1981 and understand all the COT analysts calling the CRB TOP in the terminal sense are as fundamentally ignorant as the present medium to long term dollar bulls. Never forget to review the fundamentals.
Commodities are higher because of the mega-stimulated, pre-election economy and a fundamentally devastated US dollar. The triple deficits of Budget, Trade and Current Account are the fundamental killers of the dollar that the present dollar rally makes worse. So fundamentally any rally in the US dollar only means that a lower US dollar is coming. The only reason for a strong dollar and strong gold is NOT a rush to cash to pay off debits but a factor we need not discuss here any more.
So to the herd of “No Experience Instant Experts” now bearish on gold please beware. I will here and now stake my hard-earned 45-year reputation on my position that we are in the low price territory of gold prior to a move to and above $480. I challenge the COT traders to do all they can to make my reputation null and void because if I am right you cannot do anything else but get yourself into more trouble.
Here is my pledge. If I am wrong and gold is not in the low territory and isn't preparing to take out $430.30 on the upside in a move toward $480, I will close this web site down. I have huge responsibilities and infinitely more profitable (this is my brand of community service) opportunities elsewhere and doing both is a killing experience. If I do not know what I am talking about why in the world would I keep talking?
Gold is now trading at $396.60. Soon it will bolt to $409-$412 and start its military campaign to blast COT and $430.30 to smithereens.
So here it is. I am right or I am History! Whatever happens, it is of no concern to me but you are my concern and why I do this time-consuming and really thankless community service!
How many of your paid subscription analysts and COT-owned analyst/lackeys of one sided general equity commentators will join me in this pledge to be correct or shut up? Not one, IMO!
