From the
Desk of Nick Nicolaas #13
December 12, 2002
Re: Gold is
Winning and Still a Chance to Get in ….
Dear Friends:
This just in
from James Sinclair:
“Heads Up
Gold Breaks Above the $330
The
The
Fight is on but the ESF, Gold Dealer's Cartel and Derivative Shorts have
already Lost.
By James Sinclair
Just as I told you this was going to
happen and it was going to happen now, I have more to tell you.
Gold has Won!
The instructions are simple now. Sell 1/3 of your position against the $348
level. In the meantime for those that care step ladder your purchases down on
any more futile selling ventures by the Big Three which are really the Big One
(the ESF, the Gold Cartel and our beloved hedgers) who just got the high one
from gold. This move above $330 seals the fate of all those that are positioned
in opposition to gold. I have only one thing to say to the gold producer
hedgers. I told you so! Did you listen?”
END
I agree gold is winning but as of today …
- the US$ Index was down to 104.48 with a Close of 104.53
but it still should break 104
– there does not seem to be an urgency yet by investors to exit the Dow,
S&P and NASDAQ (these indices are still trading at very high P/E multiples)
but that urgency will come when the US$ Index breaks down below 104
- then the investor herd will stampede to safe investments in order not to lose all of their assets and gold is the major component of that safe haven. (By the way, in addition to Gold and Silver stocks, if you are not already in it, consider David Tice’s Prudent Bear Fund and his Prudent Safe Harbor Fund - www.prudentbear.com/ ).
I believe the trigger to sell the indices is the
In addition, all the fundamentals are there for the indices to go down. All you have to do is look out of your window at the layoffs, earnings down and bankruptcies up. Why… well the manufacturing jobs are being exported to China and other Asian countries, the high-tech industry in India is booming and every day I hear of another manufacturer moving a plant to China. People there are earning money and quess what this new middle-class does with their money …. they save …. and they buy Gold.
Usually when I see a rally in the Gold and Silver stocks like today (Gold close $331.10 that’s up 2% and Silver closed at $4.72 that’s up 2.16%) I would say sell some. The market is very volatile and it is hard to figure out what might happen in the immediate future but this time, now that Gold has broken major technical and psychological $330 resistance barriers, I say hold onto everything you have in Gold and Silver stocks. It could be that there still will be a pullback in Gold and Silver and if that occurs you just should buy some more and average down or if you are not in yet it probably still would be a another great chance to get in on the fun.
Tomorrow is Friday the 13th which does not mean anything to me but it is a week-end and if Gold breaks the technical $334.70 on the end of this week decisively then hold onto your seats for a phenomenal ride in Gold and Silver stocks.
Yes, Gold is winning!! A breakout through $334.70 could be close at hand and if it does you may see Gold make big moves, like $50 overnight.
Bill Murphy’s (www.MetroPoleCafe.com) favorite quote is “You’ve got to be in it to win it”.
Regards,
Nick