Dear Jim,

Assuming a market crash in September 2009 and an even greater crash in May/June 2010, should a senior like me sell or hold through these events? As a shareholder and gold stock investor, I’m planning to hold all gold stocks and bullion/coins. I’m uncertain as what to do with my holdings in copper, oil and gas. Please share your thoughts with me.

Your comments are much appreciated by seniors. We advise them to buy only bullion/gold coins.

You are our guiding light. Thank you.

Sincerely,
CIGA Morris

Dear Morris,

1. At first copper, oil and gas will move lower with minor dollar strength.
2. Next the dollar will move lower.
3. Third gold will go higher.
4. All things gold will go higher.
5. The dollar breaks below .7600 and then .7200
6. Copper, gas, and oil will then move much higher.
7. Hyperinflation comes into view.
8. Equities move higher from serious low.
9. Gold moves to $5000 or higher.

All the best,
Jim

Jim,

Monthly net TIC flows were a negative $53.2 billion, $66.6 billion, and $31.2 billion respectively over the last three consecutive monthly reports. Nevertheless, gold is down and the dollar is up! Is this a topic which you might review on your website? I hope so as I have been following you closely for a number of years now.

Thanks,
CIGA John

Dear John,

The US dollar is locked into a massive crisis that cannot be avoided in 82 days.

Everything possible is being done, including MOPE about safe haven, but it cannot and will not succeed.

The dollar is below .8200 and will trade at .7200 and lower.

Regards,
Jim

Jim Sinclair’s Commentary

My former partner Yra Harris is one of the greatest traders I have ever known.

Read carefully to see his take on upcoming markets.

He is a resource few can get access to now.

From: Yra Harris
Date: Mon, Aug 17, 2009 at 9:55 AM
Subject: my favorite trade os coming on—long the precious metals and short copper

If the Chinese stocks are telling a story and I say IF then copper which is up far more then the precious metal has to collapse. My perspective on copper’s price is foggy and maybe I am off my rocker based on historic pricing, but this becomes an area of interest because as the talk is extended and the Fed is worried about credit [read Ambrose Evans] the total debasement of all currencies is coming. See point 12 of the April 2, 2009 G20 release:

” we will conduct all our economic policies cooperatively and responsibly with regard to the impact on other countries and will refrain from competitive devaluation of our currencies and promote a stable and well-functioning international monetary system.we will support,now and in futre,to candid,even-handed,and independent IMF surveillance of our economies and financial sectors,of the impact of our policies on others,and of risks facing the global economy.”

Regards,
Yra

Jim,

Beat the grass to startle the snake. It’s so obvious.

Open interest tends to collapse as price nears a trend inflection. This is the signature of a controlled bull market.

CIGA Eric

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