Thursday, December 22, 2005

Gold will escallate to $750 and then to $1,000 and $1,250

Thursday, December 22, 2005, 7:34:00 PM EST

Recent Action Confirms Gold’s Upside

Author: Jim Sinclair

Dear CIGA:

Everything that gold has done in recent months confirms my view that gold will escallate to $750 and then to $1,000 and $1,250.

All markets move in phases and gold is no exception to that rule. Reaching $548.10 in the time it occurred is for me conclusive proof that the bears and top callers are a gang of fools, fooling themselves and those poor saps that listen to them.

How gold performs in the next few weeks will determine if confidence in the present management of the U.S. has totally failed and what timeframe is left to go before that occurs.

I know exactly what will determine this, but to make it public would simply act to arm the opposition with the tools of our own unmaking. COT does not have the power to fight every dollar so let’s see if they pick the right dollar level to expend their energy.

You will know via our conversations but for now please understand that in the world’s best interest the price of gold should not redo what it has just done because in this case nothing, not even a mountain of gold, would make up for the dislocations inherent in the language of gold that would by that action be communicated.

This market period is an opportunity for the 1/3 sellers, who exited those shares with derivative risk, to move into shares without that risk. This is not a time for emotions to govern your decision making. Do not sell into weakness in good gold shares. However, if you are on credit, eliminate that insidious blood sucker from your activities. Even if you eliminate a potential profit by removing margin, it will allow you to take advantage of the full rise which is now magnificent in its potential.

Do not demand that the entire party take place in a day. That is the problem with investors that has given us this opportunity. Let the mad people of the over-the-counter derivatives to take their full pleasure in a minute. We are the patient ones who will reap the reward of survival in comfort.

Presently the picture has been painted for you in the area outlined by COT’s target on the downside given to you in the cartoon of COT’s Destiny. Now change the price on COT’s destiny to $752.80 without regards for any interim machinations.