Tuesday, June 21, 2011

Gold And Silver Fueled And Ready For Lift-off

The Gold and Silver charts below were drawn just after the close of CRIMEX trading at 1:30PM est. 

Both Gold and Silver have been consolidating gains made off of their respective lows in late January over the last six weeks.  These gains culminated in highs reached at the end of April that were new highs for the Bull Market runs in both of these two Precious Metals that began in 2001.  Gold, in fact, was at a new All-time high when Silver, threatening to take out a 30 year old high at $50 an ounce was shot down by the CRIMEX banking criminals with the aid of multiple margin increases courtesy of the CRIMEX's CME landlords.  This "drive-by-shooting" of Silver began not only a correction in all commodities, but in general equities as well.  Coincidently, the US Dollar was staring at the possibility of breaking below three year lows when this hit on Silver occurred, and the Euro was banging it's head once again on the 1.50 EUR/USD wall that European exports demand be defended.

Today, financial headlines are wrapped around the Greek Debt Crisis.  Tomorrow, the news media have little choice but to focus on a little debt crisis at the US Treasury, and the Constitutionally illegal US Federal Reserve.  Gold and Silver are poised for launch following tomorrow's Fed babble, and a new spotlight that will be shone on the real global debt crisis at the US Treasury.

Sinclair - You’re Out of Your Mind If You Sell Gold Assets Now
By  Eric King, KingWorldNews.com
Jim Sinclair: "...Where gold is concerned you are dealing with the condition of the international banks, with the balance sheets of the financial entities of the world.

So the potential right now, right here, right at this point for an error in judgment that would set off a loss of confidence is present, clear and in all probability something that we are going to be facing well into the summer months. Yeah, gold can rally (here), contrary to the opinions of those who believe in seasonality in monetary items.”

“The problem is so serious, the problem is so present time, the problem is so real that it has inherent in it the probability that the economy is not going to have a significant recovery for more than a decade. And the standard of living in the United States, the standard of many who are reading this now, especially those who have taken no measures whatsoever to protect themselves, who simply look at it as reading something of interest but not really acting on it, is going to be so significantly impacted as to make the middle-class or higher middle-class join the serf class. This is as serious as it gets.

...This has gone so far that there is no solution that can be applied and the only practical method is to continue to expand their (the Fed’s) monetary aggregates to continue to hold down interest rates. And hopefully kicking the can down the road until somebody else is in charge and that’s exactly what they are doing.

Well let’s just assume for a moment that QE is in fact limited to June 30th and let’s assume for a moment that the central bank of the United States would take a conservative restrictive approach towards monetary policy, I would suggest to you that the stock market would peel off 4,000 points so fast you would get wind burns. I suggest that if anything like that happened exposing the balance sheets of the financial institutions, that you would have to return to QE with a vengeance, unparalleled, unprecedented in history...."

Jim Sinclair laid out with remarkable precision just how dangerous the situation is today.  You can listen to the entire interview at this LINK.  And I suggest that if you haven't heard it already, you listen to it now.  I have never heard Mr. Sinclair speak more passionately about the ongoing global financial crisis than he does in this powerful and informative interview.

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