Jim’s Mailbox

Posted at 7:25 PM (CST) by & filed under Jim's Mailbox.

Jim,

Perhaps the gold bears should see this chart and realize they are patsies for the BRICS. Have a good weekend and thanks for being there for us all.

CIGA Peter

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Dear Jim,

At the end the sad state of the economies we’re all in, Western developed countries will emerge, and suddenly all the MSM gimmicks and lies about the so called recovery will be useless.

Wal-Mart Executives Sweat Slow February Start in E-Mails
By Renee Dudley – Feb 15, 2013 2:51 PM MT

Wal-Mart Stores Inc. had the worst sales start to a month in seven years as payroll-tax increases hit shoppers already battling a slow economy, according to internal e-mails obtained by Bloomberg News.

“In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal- Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.”

Wal-Mart and discounters such as Family Dollar Stores Inc. are bracing for a rise in the payroll tax to take a bigger bite from the paychecks of shoppers already dealing with elevated unemployment. The world’s largest retailer’s struggles come after executives expected a strong start to February because of the Super Bowl, milder weather and paycheck cycles, according to the minutes of a Feb. 1 officers meeting Bloomberg obtained.

Murray’s comments about February sales follow disappointing results from January, a month that Cameron Geiger, senior vice president of Wal-Mart U.S. Replenishment, said he was relieved to see end, according to a separate internal e-mail obtained by Bloomberg News.

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Jim,

I am an “evil speculator” (hedge fund manager) based in New York City. The professionals that I work with and the money of families that we manage represents $10s of billions.

I, too, agree that the price “events” will be resolved on or before your upcoming birthday. The manufactured movements in gold and silver futures markets are becoming, as you have acknowledged many times, so obvious to market participants as to show a blatant sign of weakness. Some time ago, we began trading these “events” in the paper market – anticipating obvious declines, profiting to the downside, removing our fiat profits from the paper system, and buying bullion in (further exacerbating the physical divergence). This is gold we will not sell until full valuation is reached (or you pry from our cold dead hands). I, of course, would not recommend that any of your non-professional readers attempt this type of trading activity, but it might be nice for them to know that there are some sharks out there on their side. As you know, we are not the only ones doing this. The sharks smell blood in the water and are beginning to circle.

Today’s flush was a gift.

CIGA T

 

Dear Jim,

Not good for corporate earnings and the equity market…

Best regards,
CIGA Christopher

Germany’s Merkel calls for G8 fight against tax havens
DEMMIN, Germany | Wed Feb 13, 2013 3:24pm EST

(Reuters) – Chancellor Angela Merkel took aim on Wednesday at multinational corporations that use tax rules in Europe and the United States to avoid payments and said the Group of Eight plans to fight tax havens.

"It’s not right that giant global companies have huge sales here (in Germany), in all of Europe, in the United States and elsewhere and then only pay taxes somewhere in a tiny tax haven," Merkel said in a speech in the northern town of Demmin.

"That’s why we’re going to fight to finally put an end to tax havens at the G8 meeting this year in Great Britain," she said. "The whole world will have to fight for it otherwise we won’t accomplish that."

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Dear Jim,

Interesting that the day the G20 meets, all news out is gold bearish…

"Soros dumps gold"
"NY Empire beats expectations"
"Cleveland Fed head talks about early end to QE"
"Consumer sentiment up"
"US sanctions eliminate gold flow from Turkey to Iran"
"Citigroup cuts gold miners to sell"

CIGA David,

David,

MSM, MOPE and the manipulators are all one and the same. MSM is used as a tool of the manipulation trade.

This is exactly what you would expect in an operation like we are witnessing now.

Respectfully,
Jim

 

Jim Sinclair’s Commentary

Here is a person in total control of himself and his strategy. Paulson and Soros should hire him,.

Jim,

Since trading with you since 2003-2004 you have taught me many things. One is to sell trading positions in parabolic move and buy trading positions on dumps like to today and add when downtrend lines break. That being so, today I was a buyer – something I haven’t been for a while. Thanks for teaching the lessons and even if this trading buy is wrong it comes from a lower spot than most traders are at if this is the last shake out shake down. It will be interesting to watch how this plays out over the next 30-45 days. Good luck to all of your readers. I would say good luck to you but I already know you will do well. It is the nervous hands that I worry about.

CIGA Dave M

 

Jim Sinclair’s Commentary

This is a lesson from CIGA Ron, a man without margin:

Jim,

God bless you for what you do for a many times unappreciative group of whiners who consistently fail to use these attacks to add to positions in what will ultimately prove a very profitable position to be in.

This is what I did this morning, sensing a capitulation of selling.

1. I wired money into my wife’s account and bought more of my favorite miner.
2. I wired money into a custodial account for one of my sons and bought more shares of my favorite miner.
3. I bought shares in another custodial account for another of my sons that had money clear that I had deposited yesterday.

Any questions? All 100% cash bought with no leverage.

CIGA Ron

U.S. gold bars and coins find new home overseas on Asian demand
CIGA Eric

The flow of money from West to East illustrates the flow of power.  He who controls the gold makes the rules.

Headline: U.S. gold bars and coins find new home overseas on Asian demand

By Frank Tang NEW YORK, Feb 11 (Reuters) – Booming demand for gold as a store of wealth among Asian investors is driving physical gold bars and coins out of the United States and into Asia.

A growing number of gold vaults for affluent Asians and new precious metals investment products, particularly exchange-traded funds, have led to an exodus of gold owned privately from the United States into emerging economic powers such as China.

Source: more

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Jim Sinclair’s Commentary

It is so obvious what is being done that you have to know the gold market is not under investment liquidation.

Dear CIGAs,

Once again we are starting the day with the "usual" Muppet-beating in the CRIMEX paper spot markets for Gold and Silver. The ‘beatings’ will continue until the lower ‘stops’ are run, more Muppets are ‘scared’ out of their positions, and the elevated Open Interest (which has so far stubbornly refused to cave in, which is tremendously annoying AND concerning to the Cartel) falls.

Ignoring for a moment the criminal collusion and paper market manipulation on the CME, consider this:

- Central Banks have bought the most Gold since 1964. In 2012 Central Banks bought 17% more Gold than they did in 2011, the 8th consecutive quarter of Central Banks being net buyers of Gold.
- Silver bullion shortages continue to be rumored. First it was Apple production being delayed, then the US mint halted production of Eagles, and now Germany’s largest automaker is hoarding physical Silver in a Swiss vault because ‘there is no just-in-time’ delivery of physical anymore.

Makes you go "hmmmmmm…" does it not?

It was no ‘accident’ that Rick Santelli recently said from the trading floor of the CME that it was ‘impossible to be a trader’ in this market today. Jim told you that when gold broke above $529.40. One would think that the ‘invisible hand’ and friends do not want anyone else to hold bullion, wanting it exclusively for themselves.

I think this is the "big flushout" of weak hands and newcomers, and after this dramatic drive-by Muppet-shooting is over there will be a big rally once the big boys figure they stand to gain the most from it (and enough of the Muppets do not). Sinclair and Russell also say just that.

CIGa Richard S.

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Hi Jim,

I have overlaid QE2/QE3 over the below price chart. The accumulation by the sociopaths is monumental here. I do hope they have entirely flushed the leveraged cokeheads out of the market. We will then see a surprise news event that propels gold up to and beyond $3500.

CIGA Adrian

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Hi Jim,

Many thanks for your website – it’s a terrific help in navigating these stormy waters. 

If I understand correctly:

-Powerful forces are conspiring to suppress gold prices.
-This is feasible to whatever extent necessary in view of these forces.
-Gold prices will nevertheless soon rise to $3500 and beyond.

If we accept all that, what set conditions will have made price suppression undesirable or impossible, permitting the price to rise?

Thanks for your thoughts,
CIGA Cam

Dear Cameron,

Sheeple are like cats. They cannot be herded as they go in all different directions all the time.

The value of this approach is when gold is at and above $3500 you will not have lost your position as the operators try and make the gold market puke in a total computation.

Respectfully,
Jim

 

Message Clear But Emotions Make It Difficult to Read
CIGA Eric

· Emotions see the following in the gold market:

· Falling price

· Falling price generates fear

· Fear sees price falling further.

Pessimism towards and outflows from gold are reaching extremes.  Everyone, including the great gold contrarians, can’t find even a ‘technical’ reason for buying gold.  This setup screams emotional capitulation.

The 13DEMA, a measure of money flows within the gold ETF, have fallen below 10%. This rare reading last generated at the height of the 2008 financial panic near the price bottom illustrates the extent of the capitulation underway in gold.  The obviousness of this bullish setup; however, won’t be recognized until well after the fact at higher prices.  Today’s sellers weakness will become tomorrow’s chasers of strength.

Chart:  London PM Fixed Gold and GLD (ETF) Total Assets WA Stochastic Exponential Moving Average (13DEMA)
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Jim,

This reminds me of war (that I have seen and fought). This time it is not “terrorists” trying to kill us, it is the crooks and banksters under some evil guise not many understand. You do not have to hold MY hand. I will be standing when this is over no matter what. I will be here to see another day and fight another battle. Why? Because I am tired of these guys always winning. They are winning on the downside, and they will win on the upside. I will be here on the upside, but I do not know the date, time, or place, so I don’t dare gamble on the downside. Time will give me the win on the upside… because I am here to fight the Bastards every day.

Don’t let the whiners get to you. You are not here for them. You are here for “We the People” who truly understand the demonic and ruthless nature of those Usurpers of Power.

I expect pressure applied now to force fear into people to lose all reason and logic and I will not sell.

We will prevail.

Sincerely,
CIGA Nate

 

Jim,

Correct me if I am wrong.

Giving up your gold at these price points knowing nothing is fixed? Just crazy! Add to your positions with debt free money and do what the Chinese are doing at these prices, BUY. They are most likely unloading their USD positions by supplying miner’s equity to dig gold up for them. Too bad CHINA knows how to send bad CURRENCY after good MONEY and the US does not know how to manage their own. This is yet another reason that will send the US dollar lower and gold higher with the mining shares.

Click here to read the article…

The coil gets tighter as the attached chart show that even CHAOS has order and pattern.

CIGAs Hold your ground and your gold.

"MOLON LAVE" – means "Come and take". It is a classical expression of defiance reportedly spoken by King Leonidas I in response to the Persian army’s demand that the Spartans surrender their weapons. They stood and fought and this is what we will do with gold. Never surrender. WOW I just got goose bumps.

Have a good weekend,
CIGA Perry

Dear CIGA Perry,

I wish all CIGAs both in gold and gold shares had your courage. It would assure immense profits.

Respectfully,
Jim

 

Hi Jim,

During this ultra, super counter intuitive movement in financial markets where US stock markets keep creeping up and precious metals keep being beaten, I felt compelled to write to you: I AM BUYING and adding to my stack! I think I do have an explanation for what is going on in our camp:

Since the previous peak that occurred about August 2011 (gold at 1915 during intraday – or something like that), many PM investors simply got overbought and went "all in", thus committing the sin of not leaving any reserves for such an unlikely scenario as today’s.

When you are all in and your scenario doesn’t come true, you panic! The banksters know this and are exploiting it brilliantly. In fact, I think it was all previously designed to happen.

I think they planned it right from the start (August 2011 or so). If we look at the daily charts and patterns, we can notice they changed their tactics a bit. Most of the trading days they make the stock market inch higher and PMs bleed, thus agonizing our camp (at least the ones without the mental strength that markets require). We have to admit, they are being very successful. Weak hands give up and sell their PM to purchase stocks! However, the cartel now has great opponents: mainly the Chinese and Russian governments. Unfortunately for our camp, even India, with its millennial gold friendly tradition has shown recent signs that they (at least their authorities) have been cooped (perhaps bribed) – but I doubt that the Chinese and Russians can be cooped. These are very clever guys and will determine how deep this paper game and counter intuitive movement can go on.

Adding to the Chinese and Russians, some smaller caliber opponents like high wealth individuals and 3rd world countries do offer resistance to the bankster bastards.

Bottom line of my message is I endorse completely your thoughts. I would add however to your last night thoughts (‘do nothing" or "do not sell") that I am lucky to still have fiat reserves, kept exactly for today’s unlikely and counter intuitive scenario. I am happy to purchase gold (here in Brazil silver is unavailable) and take physical possession at the prices they are creating. And I still will have reserves to keep adding, even if they produce adaptational falls of 20% from here.

My children are now being educated on what’s happening in this crazy world of central financial planners and, if the cartel is not defeated during my lifetime, my children will inherit my stack of PM and pass on to their own sons if necessary.

One last thought: Maybe if the bad guys are spying right now at us, this text will cause them some uncomfortable. To know that strong hands can take their punch and will pass on to new generations, if necessary, the knowledge about their dirty tricks!

WE SHALL NEVER SURRENDER!!!!

Best wishes from your distant admirer here in Brazil,
CIGA Antonio M

 

Jim,

Prepare to defend yourselves daily for the next little while.

What exactly does this mean?  Are we supposed to keep our eyes looking downwards so we don’t see how badly our portfolios are being ravaged? Is there something else we are suppose to do and for how long?

Thanks in advance.
CIGA Terry

Terry,

Relax. Hate me now. Be my friend in March,

Jim