Jim’s Mailbox

Posted at 8:51 PM (CST) by & filed under Jim's Mailbox.

Hey Jim,

Added a few things….

US$ outflows and rapid change of flows implies the dollar rally doesn’t have long to last.  Also, notice the big inflows in the 10-year (most of the yield curve) prior the treasury auctions http://www.treas.gov/offices/domestic-finance/debt-management/auctions/auctions.pdf. Inflows into the energy complex; Nothing significant yet, but any change in direction given the state of world affairs is worth noting.

Markets of Interest

U.S. Dollar:
http://www.facebook.com/photo.php?pid=1557966&l=be2e2aaea0&id=557304509
Commercial "hook" beginning to form after the end of the bear market rally. This could last another 1-2 weeks. Continued outflows will mark the end of the dollar bounce. In general, gold trades inversely to the dollar.

Swissie:
http://www.facebook.com/photo.php?pid=1557964&l=5820b383ff&id=557304509
http://www.facebook.com/photo.php?pid=1557965&l=52fd1f165f&id=557304509

Bullish money flows continue.

Yen:
http://www.facebook.com/photo.php?pid=1557967&l=0b4436683b&id=557304509

Bullish money flows continue.

Regards,
CIGA Eric

Jim,

"This argument is interesting, but more so is the inevitability of hyperinflation, the reality of energy as a currency hedge and the scariest of all, Pakistan."

Now is the time to be buying, not selling oil.

CIGA Eric

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Dear Mr. Sinclair,

The article below is a pretty good summary of many things you’ve been saying for a long time, summarized best by saying "don’t throw away your insurance":

“….Who is going to win the gold wars? Holders of gold? The big winners will be Indian wives whose fathers gave them a lot of gold as a dowry. The rest of us gold bugs will also do well. The general public will never catch on in time, and by the time that it occurs to even 10% or 20% of investors that they better buy gold, it will cost them so much to get into the market that they will not make the kinds of profits that today’s gold investors are going to make….”

Link…

I found the link on the GATA website.

It looks like a nice and finally warm weekend coming up in our neck of the woods.

Best regards,
CIGA Annette

Dear Annette,

This still misses the point! The mindset is wrong.

I am not in gold for profits.

I am in gold to SURVIVE that which we cannot control.

My work is for your total survival. I am making progress in all my efforts, or why would anyone waste time attacking my 50 years of participation in the financial industry, member of most major exchanges, under administrative law, and success in all my efforts?

Regards,
Jim