STUNNING DEVELOPMENTS IN SILVER, PRICE TO EXPLODE: Eric Sprott

[Serpo]

http://www.youtube.com/watch?v=Kq35gBtSopk&feature=related

[Serpo]

With gold hitting new all-time highs yesterday in dollars, euros and pounds, today King World News interviewed legendary trader Jim Sinclair and Dan Norcini to get their take on where things stand in the gold market. When Sinclair was asked about the action in gold he stated, “Gold at $1,764 is as important as gold at $524.90, and above $524.90 the gold market went into a runaway. It’s the exact same setup at $1,764, but having said that $1,764 should bring in some significant supply.



However, a move above $1,764 would be the equivalent of $524.90 in the sense that you would go from the runaway that was born at $524.90, into a hyperbolic market. The key to all of this is $1,764 and you will go above that level, but what that does is lock in five figures on the price of gold. A move above $1,764 brings into focus prices as high as $12,000, so we are are approaching the most critical milestone in the entire gold bull market.”


Sinclair continues:



“The Republicans want to raise the debt ceiling, but not enough to take the US through the next election. When Obama walked out of the meeting two days ago it was just on that point where he slammed his chair into the table and walked out. It’s being talked about as if that were standard procedure, as if that was the way things are, and in truth it is the way things are.



The debt crisis has resolved itself unto a political platform and the political platform is not in the economic best interest of the nation, but rather in the best interest of the timing of another election and as a result of that the market (in gold) yesterday broke to a new high. This situation could be one of the catalysts to take out $1,764. It will be reasonable to assume that every effort will be made not to allow gold to get through that price.



When it gets through that level gold will start jumping $100 to $200 a day. $1,764 should put up the biggest battle of the entire bull market. The number where confidence is lost is $1,764. Through that level you trigger Martin Armstrong and Alf Fields maximum numbers which will be $10,000 to $12,500, therefore expect that price level ($1,764) to be defended vigorously.”



Dan Norcini gives his thoughts on the summer breakout in gold, “As you know Eric gold is not known for having a lot of strength during the summer months, it’s usually a period of seasonal weakness. What makes the move higher so significant is the summer time frame of the breakout, particularly as you have all-time highs in three currencies, euros, pounds and US dollars.



What the market is saying is that there is an extreme lack of confidence in the monetary authorities of these respective nations. Gold is acting completely as a currency of last resort and its role as a commodity is not at all significant right now. It’s a currency that’s being pushed higher because there is demand for it based on a total lack of confidence in the monetary authorities of these Western nations.



This all goes back to the issues that are driving the gold price in the first place with one example being these sovereign debt woes in Europe. They are being temporarily papered over, and so what happens is as the fear level subsides somewhat, you see a little less urgency to buy gold on the part of participants. At that point the market doesn’t move quite as strongly, but then another eruption occurs and things take off again.



Another worry is that if you continue to see the US economy slow, there will be increasing pressure on Bernanke. His comments today notwithstanding, he is trying to back away from QE3, but basically the Fed can’t walk away from their own minutes from the FOMC. So there will come a time where the Fed will try to come in and liquify the markets again and you are going to get that liquefaction process by the Federal Reserve in conjunction with the issues that have not been resolved in Europe and there’s no telling what could happen as far as investor’s fear levels.



Investors could generally begin to panic and that could have an outsized impact on gold and corresponding price movements. The conditions are in place for a very rapid acceleration in gold if the confidence levels on the part of investors continues to deteriorate. It would not take much to break that fragile confidence and send people fleeing out of paper and into gold.”



Well ahead of this move King World News has had many written and broadcast interviews with four of the great ones, Jim Sinclair, John Embry, John Hathaway and James Turk, all telling KWN readers and listeners to anticipate this summer breakout to the upside. While professionals are on the beach or otherwise away from their trading desks, this breakout in gold has begun to unfold leaving many market participants in a bit of shock.



Volatility and expected pullbacks aside, if the upside movement in gold continues over the coming weeks it will be the first time in three decades that we have seen this type of action in gold during the summer months. If Sinclair and Norcini are correct this could be paving the way for a break in confidence that could send gold into the stratosphere.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/15_Jim_Sinclair_-_Gold_Milestone_at_%241%2C764_Paves_Way_to_%2412%2 C000.html

Sinclair’s father Bert Seligman was business partners with legendary trader Jesses Livermore. Keep in mind Livermore’s saying as we move through this bull market, “Men who can be both right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make the big money.”

[Serpo]

The following was reported in the MSM today:
"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.


"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money." (Source (http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8638644/Return-of-the-Gold-Standard-as-world-order-unravels.html))

http://www.moneyteachers.org/Drockton.Bullion.html

[Plastic]

The following was reported in the MSM today:
"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.


"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money." (Source (http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8638644/Return-of-the-Gold-Standard-as-world-order-unravels.html))


http://www.moneyteachers.org/Drockton.Bullion.html




Yah, I read this earlier today, the monkeys will burn down the zoo when the 5th gen welfare queens are no longer paid to fornicate and can't buy anymore "free" steak.

Kinda looking forward to it in an adventurer sorta way as I have no flat screen tv for them to loot.

[MAGNES]

This is the first time I know of where Gold has made a higher high in summer.

It was not knocked down from high, nor from breaking high, usually that is what
happens, they don't want it basing sideways at these levels cause it builds support and sets
up massive buy stop buyers, then it becomes much harder to control, and it is
summer, and this is happening, so maybe this is a signal of something big coming,
but then again, would they not knock it down first short term for the summer ?
Burning the shorts maybe, when they close out, only the FED/Agents shorts stand.

DAY 3 , very significant, strong chart inter day on a Friday, closing on high.

http://i56.tinypic.com/mrfwat.gif

http://stockcharts.com/c-sc/sc?s=$GOLD&p=D&yr=1&mn=0&dy=0&i=p42106480801&r=8412

[Neuro]

Why on earth would $1764 be such a pivotal point? I understand it is 42^2. Does it have something to do with the Hitchhikers guide to the galaxy? They just spout of a number and they don't give any reason why that number is important... Mystery Babylon glorified? Fuck them! Hardly any of Sinclairs (Seligman) numbers have had any practical purpose whatsoever. He would probably have been as succesful if he had a number generator generating 6-8 numbers between a 1000 and 1600...

[Serpo]

Its all in the numbers Neuro ,its all in the numbers.................

[ximmy]

Why on earth would $1764 be such a pivotal point? I understand it is 42^2. Does it have something to do with the Hitchhikers guide to the galaxy? They just spout of a number and they don't give any reason why that number is important... Mystery Babylon glorified? Fuck them! Hardly any of Sinclairs (Seligman) numbers have had any practical purpose whatsoever. He would probably have been as succesful if he had a number generator generating 6-8 numbers between a 1000 and 1600...

It jumped up & down and stayed around LEET for the longest time...

[Neuro]

It jumped up & down and stayed around LEET for the longest time...

What is LEET?

[ximmy]

It jumped up & down and stayed around LEET for the longest time...


What is LEET?

a magic number

[Dogman]

a magic number


Is that sort of like SHAZAM ?

[Neuro]

a magic number

Ahhh, I see I thought it meant Leftwing Extremist Extra Terrestrial...

Anyway did I mention they are Fuckers! Sprott sold a sizeable part of his own Silver fund, just below $50 in the end of April. He claims he bought Silver miners for the money, if he did, they probably shorted the hell out of future production, at around $50/ozt. He kept up appearances anyway, don't trust the Fucker though!

[Mouse]

1337 characters

[Twisted Titan]

Just think about it..............

The way how this financial nightmare is unfolding a handful of Mercury dimes will be more than enough capital to start a sizeable business venture or be a masssive inheritance.

[keehah]

$1764
http://jsmineset.com/wp-content/uploads/2010/12/clip_image00242.jpg

[Serpo]

Leet (or "1337"), also known as eleet or leetspeak, is an alternative alphabet for the English language that is used primarily on the Internet. It uses various combinations of ASCII characters to replace Latinate letters. For example, leet spellings of the word leet include 1337 and l33t; eleet may be spelled 31337 or 3l33t.

[Serpo]

Why on earth would $1764 be such a pivotal point? I understand it is 42^2. Does it have something to do with the Hitchhikers guide to the galaxy? They just spout of a number and they don't give any reason why that number is important... Mystery Babylon glorified? Fuck them! Hardly any of Sinclairs (Seligman) numbers have had any practical purpose whatsoever. He would probably have been as succesful if he had a number generator generating 6-8 numbers between a 1000 and 1600...

They can work out a particular number with ABC type pattern projection from a past move.

Plus its written on one of the bricks above..............hehe

[MAGNES]

$ 1600. SI moved higher , gold is moving sideways, will they knock it down ?

Day II at 1600 . High probability they will drop it.

[Awoke]

Leet is fucking stupid.

Worse than "PWNED".

[Plastic]

Leet is fucking stupid.

Worse than "PWNED".


But better than RoXx0rD.....

[Awoke]

I have no idea what that is or means.

[zap]

Speak English Damn it !;)

[mamboni]

Sinclair's prices are derived from Fibonacchi sequences. Apparently, Fibonacchi sequences show up frequently in market ups and downs and some analysts swear by them. Fibonacchi or not, Sinclair is a very smart and well-informed guy vis-a-vis gold as investment and one of the reasons I have such confidence in this gold bull.