Re: Wednesday, February 19, 2003 To the Gold Investment Community Author: Jim Sinclair =========================================================================== There is no question in my mind that we are in a long-term bull market in gold. I have stated and restated all the fundamental reasons behind my opinion. There is no reason to rehash these. What has occurred in the market is also nothing new. This happened in the early 1970s when the market retraced almost the entire gain before launching first to $400 then to $887.50.
As far as the gold shares are concerned, the real power is clearly behind those that have performed well in the period of gold's recent reaction - the pure gold shares. That is totally evident from the Schultz Gold Index chart below. As such, it is the pure gold and gold royalty issues that should lead the upcoming period of bullion's appreciation.
Inherent in the message of gold's volatility is the clear indication that this market is going much higher than most prominent analysts are willing to admit.
The US dollar during the gold reaction from $390.80 has not performed well as it is under pressure significantly in selected currencies such as the Yen and Canadian Dollar, even though the Euro has had a modest attempt so far at a rally. "
