Jim Sinclair - Fed Minutes, Gold Manipulation & Fool’s Play

On the heels of the release of the Fed minutes, today legendary trader and investor Jim Sinclair told King World News the release of the Fed minutes and subsequent market reaction in gold was orchestrated.  Sinclair also said this is government manipulation against the tide of the bull market and it will be overrun.  Here is what Sinclair had to say about what transpired today in the gold market:  “The tactic is always the same.  The gold banks enter the COMEX and offer more gold for sale at the market than has been mined in the last five years.  Immediately, the locals (pit traders) try to run in front and hit any bids they happen to have on their book or are out there in order to get the price down.” 

Jim Sinclair continues:

“Gold tanks down to the $1,640 level and now the brokers for the gold banks begin to enter the market to cover shorts to reduce the short position taken, and most likely to completely flatten it on the day.  This has been going on from 1968 to 1980 and it’s also been going on from 2001 to today. 

The net effect is absolutely nothing.  The idea that there is a significant, improving economy directly in front of us is absolutely, completely and utterly a fabrication.  The only reason car sales are firm is because they are giving away easy credit out there, so much so that even my dogs could buy a Cadillac Escalade....

“The markets are being run right in front of your eyes.  Trading gold has never been easy and if you can’t stand the heat, you have to get out of  the kitchen.  You have to have courage and know that you are right.  You have to look at today as a fool’s play.

This was completely orchestrated and enhanced by mainstream financial media.  It was operated on the exchange and covered by the close.  Shame on them.  QE to infinity is as sure as death and taxes and all the way through this saga of QE to infinity there will be denial of its use.

You have had, right up to now, many and different modes of QE, including filling the holes created prior to the default by Greece.  The whole thing is a play working its way out.  You have to remember there is no way in the world that management of perspective economics will be able, even with coercion in the market, to turn around the business cycle which continues relentlessly to the downside.

I’ve been doing this for 50 years and it was almost obvious today when the standard list of gold shares got hit around noontime.  The setup was known in advance and this was such a farce.  It’s totally transparent.  This was so technically and perfectly timed that anyone who thinks what took place is happenstance, is lacking vision.  This was executed almost without camouflage.

This is pure manipulation, but the one thing the gold banks know is that you cannot manipulate a market, for any length of time, in the direction it does not want to go.  You can only manipulate a market in the direction it wants to go.

So all of this fighting has been very profitable in the short-term and is a result of the government thinking in terms of a ‘weak gold policy.’  The ‘weak gold policy’ being to make sure that gold didn’t roar up when things were going wrong.

This is manipulation against the tide of the market and it’s going to fall back on its face because the institutions that will make the most money in this gold market are the gold banks and they will accomplish this by being long of gold.  Any true professional knows what is going to happen, gold is going to go to Alf’s number of $4,500.”

Source : http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/4_Jim_Sinclair_-_Fed_Minutes%2C_Gold_Manipulation_%26_Fools_Play.html