Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Political Turmoil Takes Center Stage | Main | Subscribe Now and Get Your Money Back If Gold Drops Below $1400 »

Pessimism in the gold space

A number of investors have been hit pretty hard during the recent pull back in gold prices so we thought that we would begin with this missive from Jim Sinclair to add a bit of optimism and balance to the debate:

During reactions in gold, the degree of gold and gold share holders pessimism is EPIC and without cause.


Why Gold?


1. Gold is a currency.

2. Gold is competitive to paper currency.

3. Gold is not a commodity

4. Gold is a barometer of fear.

5. Gold is a barometer of confidence in government.

6. Gold is insurance.

7. Gold is insurance against government gone mad.

8. Insurance is not something you trade.

9. Gold is the financial high ground when global debt problems exist.

10. Gold in your hand eliminates all counter party risk.

11. Every single currency is paper backed by nothing.


Stay the course. Nothing is solved, nor will it be.


Gold will be violent. Gold is nowhere near fully priced.







Meanwhile over in the euro-zone Angel Merkel delivered a convincing vote as follows:


In Berlin yesterday, the lower house of parliament, voting 523 in favor and 85 against, approved giving the EFSF powers to buy bonds in secondary markets, enable bank recapitalization and offer precautionary credit lines. It raises Germany's guarantees to 211 billion euros from 123 billion euros.

Read more


As we understand it, by 2013 the EFSF will need about 1.5 Trillion euros as back up for the PIIGS, so the financial pressure on Germany to stump up is not going away just yet. It also looks to us that the politicians in Germany are not carrying out the wishes of the people, but we wont know for sure if this is the case until there is an election. The terms of the bailout for Greece are already causing demonstrations in the streets with the citizens burning Tax forms, etc. Its one thing to say that you will do something and another to turn around and say wont you, looking at the masses.


We also see that a banking transaction tax has been proposed by the European Union officialdom, as about 80% of these transactions take place in the city of London it is in effect a London tax. If this tax is imposed then the city of London will either sublet that element of their work to regional offices outwith the EU or relocate lock, stock and barrel. If they do decide to relocate then the EU will be collecting less in tax receipts than they are now. We will now see if the Prime Minister, David Cameron, can and will indeed stand up for British interests and veto this tax.


Either way we don’t see these dithers ever getting a grip as their concentration is focused on raising money and not reducing costs, something which comes to close to their bones.


We remain unmoved by the gyrations of these political rock stars and will continue to keep our faith with both gold and silver.




Regarding We currently have a number of open trades at the moment however, we do not update the charts until the trade is closed and the cash is back in our account. (During the carnage this week we closed one position for a profit of 62% and have updated the charts accordingly)

Our model portfolio is up 407.38% since inception


An annualized return of 113.83%%


Average return per trade of 42.43%


86 closed trades, 83 closed at a profit


Average trade open for 45.85 days


So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.


To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.  Winners of the GoldDrivers Stock Picking Competition 2007 


For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.


For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here. 



PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>