The trader who made his fortune in gold calling the 1980 top

Discussion in 'Trading' started by thriftybob, Mar 14, 2007.

  1. He was "all in" gold and called the top to the day as the story goes.

    Looks like he's going "all in" gold again...

    A Day Of Unfounded Fear

    Author: Jim Sinclair

    Dear Friends,

    Flight to quality certainly does not mean a flight to paper currency. Such a concept is total madness made up of the non-experienced, the perma-bull dreamers and dollar worshipers as an act of patriotism.

    Other than some activity in the USDX in the last few minutes of US Trading, the Exchange Stabilization Fund who understand very well what is occurring are holding their powder to defend the dollar at .8050 soon.

    So after all my lessons, history, teaching and construction of Formulas, Thesis, Doctrines and illustrations it is now time for me to fish or cut bait.

    My choice is to regain the courage of my youth, and do that which demands to be done. This may well not be for you nonprofessionals, but is for me.

    The extremely positive fundamental character of gold in the first flame of a meltdown is too hard for me to ignore.

    The Fed will do whatever is necessary to save the system from the first flame of meltdown, but what they MUST do is super bullish for gold and dollar bearish.

    I have been buying real and paper gold on the down and selling on strength with reasonably good fortune. Now for me it comes the time to take that good fortune and increase it by buying physical and paper gold on a scale down as long as the noobies wish to pound on it.

    I did not say gold shares simply and only, because I DO NOT wish to create regulatory conflict between my corporate position and my now 49 years of trading success.

    A flight to safety is not to the unsafe paper asset class, is not to plummeting dollars, is not to dollar denominated treasury instruments which are the same as dollar risk, but to GOLD, the only honest money.

    I believe in me -- you have no such obligation. Wish me luck!

    Sincerely yours,
  2. there is only one tap in the market and it is liquidity on or off the table. oil/gold/indices trade in tandem. i believe gold should be trading inversely to the markets at this point - but it aint. the liquidity spigot knows no asset classes.
  3. What would you do in the event that the Fed "caps" the gold market and then crushes it a few hundred dollars per ounce one day? Stranger things could happen.